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A Capitalism for the People: Recapturing the Lost Genius of American Prosperity

di Luigi Zingales

Altri autori: Vedi la sezione altri autori.

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Born in Italy, University of Chicago economist Luigi Zingales witnessed firsthand the consequences of high inflation and unemployment -- paired with rampant nepotism and cronyism -- on a country's economy. This experience profoundly shaped his professional interests, and in 1988 he arrived in the United States, armed with a political passion and the belief that economists should not merely interpret the world, but should change it for the better. In A Capitalism for the People, Zingales makes a forceful, philosophical, and at times personal argument that the roots of American capitalism are dying, and that the result is a drift toward the more corrupt systems found throughout Europe and much of the rest of the world. American capitalism, according to Zingales, grew in a unique incubator that provided it with a distinct flavor of competitiveness, a meritocratic nature that fostered trust in markets and a faith in mobility. Lately, however, that trust has been eroded by a betrayal of our pro-business elites, whose lobbying has come to dictate the market rather than be subject to it, and this betrayal has taken place with the complicity of our intellectual class. Because of this trend, much of the country is questioning -- often with great anger -- whether the system that has for so long buoyed their hopes has now betrayed them once and for all. What we are left with is either anti-market pitchfork populism or pro-business technocratic insularity. Neither of these options presents a way to preserve what the author calls "the lighthouse" of American capitalism. Zingales argues that the way forward is pro-market populism, a fostering of truly free and open competition for the good of the people -- not for the good of big business. Drawing on the historical record of American populism at the turn of the twentieth century, Zingales illustrates how our current circumstances aren't all that different. People in the middle and at the bottom are getting squeezed, while people at the top are only growing richer. The solutions now, as then, are reforms to economic policy that level the playing field. Reforms that may be anti-business (specifically anti-big business), but are squarely pro-market. The question is whether we can once again muster the courage to confront the powers that be.… (altro)
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In 1971 the federal government guaranteed a $250 million loan to Lockheed Aircraft. It was the first time in history that the federal government had come to the rescue of a single failing firm (or, more precisely, its creditors).[1] By the end of the 1970s, Penn Central Railroad and Chrysler would also receive bailouts. In 1984, it was Continental Illinois. And on the eve of the ‘90s it was the creditors of hundreds of savings and loan associations. Nothing, however, would compare to 2008. In a single year, the federal government bought stake in or bailed out hundreds of private financial and automotive firms. The rules of the bailout game, if there were any, were not always clear. Having come to the aid of Bear Stearns (via J.P. Morgan) and Fannie Mae and Freddie Mac, the federal government stunned creditors when it let Lehman Brothers fall in mid- September 2008. But just 2 days later, bailouts resumed when the Federal Reserve made an $85 billion emergency loan to insurer American International Group.The experience left a lot of people reexamining their beliefs about American capitalism. From then on, were all large firms assumed to have the full faith and credit of the federal government behind them? Was there any way to credibly commit not to bail out systemically significant financial institutions? What cultural and political norms and taboos had the bailouts shattered? And how did these changes affect the public’s perception of government and “free market” capitalism? We are fortunate that one of the people thinking about these questions was Luigi Zingales. He recorded his first observations on the crisis in a must-read piece in National Affairs titled “Capitalism After the Crisis” (2009). Now he has expanded those observations to book-length in A Capitalism for the People.Zingales is as qualified as anyone to address these questions, and that’s not just because he is an extraordinarily creative and productive financial economist of the University of Chicago’s Booth School of Business. He’s also an Italian emigre who is refreshingly unafraid to draw on his personal biography to make his case.
  Maurizjo | Dec 13, 2020 |
A powerful rallying cry for "pro-market populism," like his previous co-authored book ("Saving Capitalism from the Capitalists"), this one espouses a pro-market but not pro-business view that is deeply skeptical of rent seeking, lobbying, and business-government partnerships more broadly. The first half starts out with a tribute to American exceptionalism which he sees as coming from democracy that preceded industrialization, flourished before government grew large and was mature before it entered into foreign competition. He sees the growing size of government, lobbying, bailouts, etc., as undermining this form of capitalism. The second half of the book is a set of recommendations for what to do about it, ranging from tax reform and financial regulation reform to a discussion about how to create a more civic culture premised on trust and averse to rent seeking. Many of the ideas are avowedly impractical. ( )
  nosajeel | Jun 21, 2014 |
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Nome dell'autoreRuoloTipo di autoreOpera?Stato
Luigi Zingalesautore primariotutte le edizionicalcolato
Davis, JonathanNarratoreautore secondarioalcune edizioniconfermato
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Born in Italy, University of Chicago economist Luigi Zingales witnessed firsthand the consequences of high inflation and unemployment -- paired with rampant nepotism and cronyism -- on a country's economy. This experience profoundly shaped his professional interests, and in 1988 he arrived in the United States, armed with a political passion and the belief that economists should not merely interpret the world, but should change it for the better. In A Capitalism for the People, Zingales makes a forceful, philosophical, and at times personal argument that the roots of American capitalism are dying, and that the result is a drift toward the more corrupt systems found throughout Europe and much of the rest of the world. American capitalism, according to Zingales, grew in a unique incubator that provided it with a distinct flavor of competitiveness, a meritocratic nature that fostered trust in markets and a faith in mobility. Lately, however, that trust has been eroded by a betrayal of our pro-business elites, whose lobbying has come to dictate the market rather than be subject to it, and this betrayal has taken place with the complicity of our intellectual class. Because of this trend, much of the country is questioning -- often with great anger -- whether the system that has for so long buoyed their hopes has now betrayed them once and for all. What we are left with is either anti-market pitchfork populism or pro-business technocratic insularity. Neither of these options presents a way to preserve what the author calls "the lighthouse" of American capitalism. Zingales argues that the way forward is pro-market populism, a fostering of truly free and open competition for the good of the people -- not for the good of big business. Drawing on the historical record of American populism at the turn of the twentieth century, Zingales illustrates how our current circumstances aren't all that different. People in the middle and at the bottom are getting squeezed, while people at the top are only growing richer. The solutions now, as then, are reforms to economic policy that level the playing field. Reforms that may be anti-business (specifically anti-big business), but are squarely pro-market. The question is whether we can once again muster the courage to confront the powers that be.

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