People generally agree: The economy isn’t working for everyone. In this new book, investment strategist Ruchir Sharma aims blame at both major parities. Because in his assessment, capitalism’s failures — intense concentration of wealth, massive debt — all go back to government interventionism — a crisis to which both parties readily contribute.
Sharma, who is currently the chairman of Rockefeller International and a columnist for Financial Times, spends nearly 300 pages essentially making this case: “When government becomes the dominant buyer and seller in the market — as it has in recent decades — it distorts the price signals that normally guide capital,” he writes. And a little later: “Flaws that economists blame on ‘market failures,’ including wealth inequality and inordinate corporate power, often flow more from government excesses.”
What Went Wrong with Capitalism unfolds in three parts, tracing the growth of government interventions, how interventions hurt the economy, and some constructive ideas for a “balance.”
To Sharma’s credit, this book reads smoothly and should be accessible to more readers than the typical economics book.
Out June 11, 2024.