Sometimes a very readable, and exiting book falls into your hands. And that is 23 Things They Don’t Tell You About Capitalism from the Korean Cambridge professor Ha-Joon Chang for sure. In a clear way he demystifies the free market, shareholder capitalism and the idea that government should take its hands off the economy. An insightful book, that makes you think! Because where in the world do you hear a reasonable voice (he is still in favor of capitalism) that argues for a good welfare state and for a sound reconstruction of the world economy. Chang formulates eight principles for a reasonable economic future. Some of which I find very useful.
First the idea that we shouldn’t build the economy on the pursuit of material self-interest, but on enlightened self-interest. Let’s also reward and take into account what we do for others. Which also would mean to design organisations in such a way that they reward trust, solidarity, honesty and cooperation between people.
Secondly, we should take much more serious “the making of things”. The economy will never be build on knowledge alone, but as much on industrial products. Who doesn’t believe that should read the wonderful book of Brian Arthur, The Nature of Technology. He shows that all our technology and vis-à-vis our knowledge is based on the capturing of effects that exist in nature.
And finally, we need a big and active state. To care for a broad spectrum of education, for sound regulation of the financial system and a innovative industrial policy. As a broad public base for a dynamic economy. We cannot do without. A thriving capitalism neither!
