Posts Tagged ‘Economics’
Saving Capitalism from the Capitalists by Raghuram Rajan and Luigi Zingales
Posted on: January 16, 2017
Saving Capitalism from the Capitalists: Unleashing the Power of Financial Markets to Create Wealth and Spread Opportunity by Raghuram G. Rajan
My rating: 4 of 5 stars
A very nice book by Raghuram Rajan and Luigi Zingales. The book covers how it is important to have free market for any country to flourish, while at the same time it requires a mature, kind government which ensures that the market is truly free.
The key argument is that in most countries what may appear to be a free market may not really be a free market. The big companies acquire so much power that they influence the government to pass rules which ensures their continued dominance. They ensure that there is very less chance for somebody to disrupt their business.
It is argued that if the government is truly in favour of free market, they will be able to see through the plot for the large companies and will pass rules that ensure that the economic environment in the country is conducive for new entrepreneurs with bright ideas to setup their business without hindrance.
Various examples have been quoted where the powers that be, Government or in earlier in the Kings either wittingly or unwittingly have been responsible for the growth of their countries by creating an environment for true free market to survive and thrive.
The irony as the title suggests that it is the capitalists that are probably the worst enemies of “true capitalism” and “true capitalism” is an absolute must for the growth of economy of any country.
A very fine read.
PS: The reviewer is a self confessed fan of Mr. Raghuram Rajan
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