Good Capitalism, Bad Capitalism - and the Economics of Growth and Prosperity
Recorded on May 10, 2007
Location: The Heritage Foundation's Lehrman Auditorium
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, Robert E. Litan and Carl J. Schramm (as
well as their colleague William J. Baumol) 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. The authors dispel that myth, documenting four
different varieties of capitalism, some "Good" and some "Bad" for
growth. They 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. In short, this new view
of the wealth of nations offers a guide to economic policy in all
countries from the richest to the poorest.