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Hardcover: 336 pagesPublisher: Yale University Press; 1 edition (May 22, 2007)Language: EnglishReview
"In our lifetimes, humans passed a remarkable milestone. Most people now live in a capitalist economy. This is not, however, the end of history. As the authors of this path breaking book show, there are several distinctly different types of capitalism and it takes a mixture of two of these types to get all the economic, social, and political benefits that capitalism affords."-Paul M. Romer, STANCO 25 Professor of Economics in the Graduate School of Business at Stanford University (Paul M. Romer )
"Good Capitalism, Bad Capitalism tells us that capitalism comes in different flavors, and some of those flavors taste very much better than others. One of these forms of capitalism, entrepreneurial capitalism, is a special treat. It leads to growth and prosperity. The other forms are to be avoided; they lead to stagnation. This new view of the wealth of nations offers a guide to economic policy in all countries, from richest to poorest. This is a daring book with big, bold, important ideas."-George Akerlof, University of California, Berkeley, Nobel Laureate in Economics, 2001 (George Akerlof )
Product Description
Imagine this: a mere century ago, the purchasing power of an average American was one-tenth of what it is today. But what will it take to sustain that growth through the next century? And what can be said about economic growth to aspiring nations seeking higher standards of living for their citizens?
In this important book, William J. Baumol, Robert E. Litan, and Carl J. Schramm contend that the answers to these questions lie within capitalist economies, though many observers make the mistake of believing that “capitalism” is of a single kind. Writing in an accessible style, the authors dispel that myth, documenting four different varieties of capitalism, some “Good” and some “Bad” for growth. The authors identify the conditions that characterize Good Capitalism—the right blend of entrepreneurial and established firms, which can vary among countries—as well as the features of Bad Capitalism. They examine how countries catching up to the United States can move faster toward the economic frontier, while laying out the need for the United States itself to stick to and reinforce the recipe for growth that has enabled it to be the leading economic force in the world. This pathbreaking book is a must read for anyone who cares about global growth and how to ensure America’s economic future.
CONTENTS
Preface vii
1 Entrepreneurship and Growth: A Missing Piece
of the Puzzle 1
2 Why Economic Growth Matters 15
3 What Drives Economic Growth? 35
4 Capitalism: The Different Types and Their Impacts
on Growth 60
5 Growth at the Cutting Edge 93
6 Unleashing Entrepreneurship in Less Developed
Economies 133
7 The Big-Firm Wealthy Economies: Preventing Retreat
or Stagnation 185
8 The Care and Maintenance of Entrepreneurial
Capitalism 228
Appendix: Data Collection and Measurement Issues 277
Notes 287
Bibliography 299
Index 313
Good Capitalism, Bad Capitalism and Economic Growth.pdf
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