What Went Wrong with Capitalism

By: Ruchir Sharma

Narrated by: Fajer Al-Kaisi

Named a Best Book of 2024 by The Wall Street Journal and Financial Times

An “eye-opening” (The New York Times), “absolutely fascinating” (Fareed Zakaria, CNN host and commentator) look at a how a century of expanding government has distorted financial markets, stoked massive inequality, and soaked America in debt.

Capitalism didn’t fail, it was ruined…

What went wrong with capitalism? Ruchir Sharma’s account is not like any you will have heard before. He says progressives are right, in part, when they mock modern capitalism as “socialism for the rich.” For a century, governments have expanded in just about every measurable dimension, from spending to regulation and the scale of financial rescues when the economy wobbles. The result is expensive state guarantees for everyone—bailouts for the rich, entitlements for the middle class, welfare for the poor.

Taking you back to the 19th century, Sharma shows how completely the reflexes of government have changed: from hands-off to hands-on, from doing too little to help anyone in hard times to today trying to prevent anyone suffering any economic pain, ever. Trading sins of omission and indifference for excesses of spending and meddling, governments from the United States to Europe and Japan have pumped so much money into their economies that financial markets can no longer invest all that capital efficiently.

Inadvertently, they have fueled the rise of monopolies, “zombie” firms, and billionaires. They have made capitalism less fair and less efficient, which is slowing economic growth and fueling popular anger. The first step to a cure is a correct diagnosis of the problem. Capitalism has been badly distorted by constant government intervention and the relentless spread of a bailout culture. Building an even bigger state will only double down on what ruined capitalism in the first place.

What Went Wrong with Capitalism is a “superbly written” (The Wall Street Journal), “fresh and accessible” (Robert Rubin, former Secretary of the Treasury and chairman of Citigroup) look at the issues confronting our capitalistic society and will ultimately reshape how you think about world.©2024 Ruchir Sharma (P)2024 Simon & Schuster Audio

Great synthesis for those who are interested in economics

The author is apolitical and favors pragmatic solutions with a balanced approach. His objectivity coupled with historical observations provides a compelling path our nation must achieve in order to survive. He’s not supporting extreme; rather he believes government must respond to needy citizens but not via bloviated governments that destroy competition and innovation. His is a healthy vision that we can only hope guides our nation’s leaders. We are at a critical juncture- Sharma has a balanced vision we need to respect and apply.

Dealing with the truth

Scary facts but good to understand where we are headed and where we should be going.

What Most People Have Known for Years

There is nothing new here, but it’s good that someone wrote it up for those who haven’t figured it out. It is a very old well known story. However, he misses the primary culprit for not only the reason why the US and other advanced nations are going in their direction but also why they are generating low productivity growth. Why do people want more government, why do people want to take longer vacations and live off lattes, why do they no longer wish to save? Why is the US the US, Bolivia is Bolivia, and Japan is Japan. He should get out of his cloistered world, get at the core problem, and write another book. He’s a bright guy; I am sure he can figure it out.

Great take

This is a good book that gives an unbiased view on how our leaders continue to botch managing capitalism

Good points from the economic history of USA

The book has a long review of history of the economic progress and policies in the USA. The particular thesis that capitalism has not panned out has been a result of the policies. The policies were designed from a short term view of politicians rather than a long term view of the economic progress.

Conservative Bent Overlooks Much

This books smells like the Heritage Foundation, a conservative propaganda mill. In terms of US deficit spending, the author seems to attribute all of it to poorly implemented stimulus of the economy. I think he fails to acknowledge, as do both the left and the right, the insane levels of military spending in the United States.

Sure, being the biggest means we are wearing a target but instead of helping countries and building allies, we bomb and kill and support other who will kill for us. War is by far America's biggest and most profitable industry and it will be until that is no longer sustainable.

The book is very interesting but I think it misses the elephant in the room. Even his discussion of Switzerland fails to mention that as a neutral country, it spends very, very little on defense. Of course, the right wing loves the military even when it fails or wastes. it does both regularly. And those wasteful failures like Iraq and Afghanistan, yes, even this mess in Israel, are expensive beyond measure. we are failing Ukraine as well by seeking out just enough for them to keep fighting but not enough to win.

I am curious about your take on this book.

Clarity of the effect of debt

Great historical perspective and easy to understand the mechanism that drives growth, a recommended read for those who wonder why society is polarized today

Meh

Nothing new or insightful, not much of a critique either. Mostly basic and boring run down of American economics told in a seemingly apolitical way but with a somewhat conservative and uncreative perspective.

If you’re looking for a basic and overly pragmatic general overview this might be for you.