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 Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity, William J. Baumol, Robert E. Litan, and Carl J. Schramm 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.
Writing in an accessible style, the authors dispel that myth, documenting four different varieties of capitalism, some "Good" and some "Bad" for growth. The authors 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.
This pathbreaking book is a must read for anyone who cares about global growth and how to ensure America’s economic future.
Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity by William J. Baumol, Robert E. Litan, and Carl J. Schramm
Table of Contents
- Preface iiv
- 1. Entrepreneurship and Growth: A Missing Piece of the Puzzle 1
- 2. Why Economic Growth Matters 15
- 3. What Drives Economic Growth? 35
- 4. Capitalism: The Different Types and Their Impacts on Growth 60
- 5. Growth at the Cutting Edge 93
- 6. Unleashing Entrepreneurship in Less Developed Economies 133
- 7. The Big-Firm Wealthy Economies: Preventing Retreat or Stagnation 185
- 8. The Care and Maintenance of Entrepreneurial Capitalism 228
- Appendix: Data Collection and Measurement Issues 277
- Bibliography 299
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