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Politically Incorrect Guides
The Politically Incorrect Guide to Capitalism
Most commonly accepted economic "facts" are wrong Here's the unvarnished, politically incorrect truth. The liberal media and propagandists masquerading as educators have filled the world--and deformed public policy--with politically correct errors about capitalism and economics in general. In The Politically Incorrect Guide(tm) to Capitalism, myth-busting professor Robert P. Murphy, a scholar and frequent speaker at the Ludwig von Mises Institute, cuts through all their nonsense, shattering liberal myths and fashionable socialist cliches to set the record straight. Murphy starts with a basic explanation of what capitalism really is, and then dives fearlessly into hot topics
* Outsourcing (why it's good for Americans) and zoning restrictions (why they're not)
* Why central planning has never worked and never will
* How prices operate in a free market (and why socialist schemes like rent control always backfire)
* How labor unions actually hurt workers more than they help them
* Why increasing the minimum wage is always a bad idea
* Why the free market is the best guard against racism
* How capitalism will save the environment--and why Communist countries were the most polluted on earth
* Raising why it is never "responsible"
* Why no genuine advocate for the downtrodden could endorse the dehumanizing Welfare State
* The single biggest myth underlying the public's support for government regulation of business
* Antitrust usually filed by firms that lose in free competition
* How tariffs and other restrictions "protect" privileged workers but make other Americans poorer
* The IMF and World why they don't help poor countries
* Are you a capitalist pig? Take the quiz and find out! Breezy, witty, but always clear, precise, and elegantly reasoned, The Politically Incorrect Guide(tm) to Capitalism is a solid and entertaining guide to free market economics. With his twelve-step plan for understanding the free market, Murphy shows why conservatives should resist attempts to socialize America and fight spiritedly for the free market.
* Outsourcing (why it's good for Americans) and zoning restrictions (why they're not)
* Why central planning has never worked and never will
* How prices operate in a free market (and why socialist schemes like rent control always backfire)
* How labor unions actually hurt workers more than they help them
* Why increasing the minimum wage is always a bad idea
* Why the free market is the best guard against racism
* How capitalism will save the environment--and why Communist countries were the most polluted on earth
* Raising why it is never "responsible"
* Why no genuine advocate for the downtrodden could endorse the dehumanizing Welfare State
* The single biggest myth underlying the public's support for government regulation of business
* Antitrust usually filed by firms that lose in free competition
* How tariffs and other restrictions "protect" privileged workers but make other Americans poorer
* The IMF and World why they don't help poor countries
* Are you a capitalist pig? Take the quiz and find out! Breezy, witty, but always clear, precise, and elegantly reasoned, The Politically Incorrect Guide(tm) to Capitalism is a solid and entertaining guide to free market economics. With his twelve-step plan for understanding the free market, Murphy shows why conservatives should resist attempts to socialize America and fight spiritedly for the free market.
206 pages, Paperback
First published January 1, 2005
44 people are currently reading
1,023 people want to read
About the author
Robert P. Murphy
32Ìýbooks191ÌýfollowersRobert P. "Bob" Murphy is an Austrian School economist and anarcho-capitalist.
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Displaying 1 - 30 of 99 reviews
March 10, 2010
This book lays out mechanistic individualism (otherwise known as conservatism or libertarianism) in typical form -- everything that violates individualism is wrong, and everything that exalts it is good. As a free market, anti-capitalist myself, I'm always interested in how stoics like this handle the history of capitalism, which is largely state intervention on behalf of the rich. In this book, Murphy reveals the contradiction with a little more flare than most. On page 2 he says, "in this book we will examine 'pure' capitalism, even though it doesn't exist in this form today," and on page 22 he says, "it is the triumph of capitalism that has improved living standards and working conditions -- capitalists are just too busy working and investing to take a bow." So capitalism doesn't exist, but it gets the credit for improved living standards. This confusion vanishes if we distinguish between free markets and capitalism, as the early anarchists did. Then we can say, free markets don't exist but state intervention on behalf of the rich has greatly raised living standards. No country ever got rich via a free market.
June 4, 2016
I wanted to give this one five stars, but in truth Murphy does use sweeping generalizations and assumptions.
He's trying to reduce economics to basic forces and make it easily accessible to the common layman. I can respect his attempts and go along with most of his assertions. However, I can see why some try to poke holes in his theories and examples, and I think Murphy assumes the best about humanity and pure capitalism. He assumes people will have common sense and make smart decisions, but all-too-often that's not the case. I value the ability of free market capitalism to punish stupid people, but many would disagree and think we need to keep people from making mistakes that harm themselves. In other cases, smart people can still get hurt while free market forces re-align themselves, so an economy like Murphy's takes a lot of faith in people's ability to pick themselves up off the pavement and move on.
Still, this book reenforced my belief in the free market system, and I'd recommend it as a very useful reference.
He's trying to reduce economics to basic forces and make it easily accessible to the common layman. I can respect his attempts and go along with most of his assertions. However, I can see why some try to poke holes in his theories and examples, and I think Murphy assumes the best about humanity and pure capitalism. He assumes people will have common sense and make smart decisions, but all-too-often that's not the case. I value the ability of free market capitalism to punish stupid people, but many would disagree and think we need to keep people from making mistakes that harm themselves. In other cases, smart people can still get hurt while free market forces re-align themselves, so an economy like Murphy's takes a lot of faith in people's ability to pick themselves up off the pavement and move on.
Still, this book reenforced my belief in the free market system, and I'd recommend it as a very useful reference.
December 3, 2023
I am a believer in capitalism and free markets, but this book presents capitalism in its purest form as the recipe for the perfect society. All social ills are blamed on manmade constrictions on the free market. While I agree that this does happen, I think this book overstates the "virtue" of free markets.
Nevertheless, I am always interested in a varying viewpoints, particularly those that exist on one of the "poles" of opinion.
Nevertheless, I am always interested in a varying viewpoints, particularly those that exist on one of the "poles" of opinion.
May 16, 2021
Pretty accessible and less bombastic than but still a little too mocking for my tastes. I'd recommend reading instead. But this does provide a good overview of some common economic debates.
February 2, 2011
I must say i was surprised at how good this book was. It's very direct, in your face... but maybe something like this might be needed considering how those with more "social" views often are totally unfair and offensive in their attacks in debates on some of the issues touched by the book. Not that this book is, but compared to the mild mannered kind and reserved tone of most economics books this one is quite edgy in it's "in your face" examples of popular misconceptions. It may not go into as much detail in the explanations but it's full of awesome facts and info and covers a broad spectrum of subjects. I particularly loved the "a book you're not supposed to read" system of constantly recommending books on sections for deeper reading :)) And yes, it does often feel like that, like it's politically incorrect to say certain things... and that you're not to supposed to know or understand how the world really works, so that you can remain vulnerable to group herding and all that.
Warmly recommending it! For a deeper dive in the subject, if u liked this book I would also recommend Sowell's "Economic Facts and Fallacies".
Warmly recommending it! For a deeper dive in the subject, if u liked this book I would also recommend Sowell's "Economic Facts and Fallacies".
May 23, 2012
This book scratched the surface of the majority of free market concepts that are lost on most of today's general population. As with most of the P.I.Guides, it lays out a great foundation for future research and understanding for the beginner in economics. I found myself skipping some parts because I had studied his main points in other works, but It did explain the function of many "bad" market players such as speculators, middle men, futures traders and corporate raiders (hostile takeovers) that people usually look at with disdain. In a free market these market actors play an important and misunderstood role. I would definitely recommend this book to any economic beginners, and will keep my copy on the bookshelf for a helpful reference. Great read!
July 21, 2022
Una versión más gamberra y actualizada del clásico "EconomÃa en una lección" de Hazlitt.
A través de un razonamiento económico similar, trata diferentes tópicos como la función de los precios, los salarios, diferencias entre propiedad privada y pública, sindicatos...
Existe una clara tendencia austriaca del autor, sobre todo en la parte de dinero y banca (y su defensa del coeficiente de caja del 100%) en la que no puedo estar más en desacuerdo y lo orienta de una forma totalmente desacertada si partimos de que el público target son personas iniciadas en EconomÃa.
Es de agradecer también que los comentarios del libro en la edición española sean realizados por Juan Ramón Rallo, acompañando asà las lecciones a su aplicación en la economÃa española.
En conclusión, un libro que, a pesar de no estar mal razonado y tratar tópicos diferentes a los que suele haber en libros del mismo perfil, no aporta nada nuevo a lo que uno se puede encontrar en el libro de Hazlitt o similares. Le pongo 3 estrellas porque al tratarse de un libro introductorio entiendo su simplicidad y poca sustancia.
A través de un razonamiento económico similar, trata diferentes tópicos como la función de los precios, los salarios, diferencias entre propiedad privada y pública, sindicatos...
Existe una clara tendencia austriaca del autor, sobre todo en la parte de dinero y banca (y su defensa del coeficiente de caja del 100%) en la que no puedo estar más en desacuerdo y lo orienta de una forma totalmente desacertada si partimos de que el público target son personas iniciadas en EconomÃa.
Es de agradecer también que los comentarios del libro en la edición española sean realizados por Juan Ramón Rallo, acompañando asà las lecciones a su aplicación en la economÃa española.
En conclusión, un libro que, a pesar de no estar mal razonado y tratar tópicos diferentes a los que suele haber en libros del mismo perfil, no aporta nada nuevo a lo que uno se puede encontrar en el libro de Hazlitt o similares. Le pongo 3 estrellas porque al tratarse de un libro introductorio entiendo su simplicidad y poca sustancia.
November 12, 2017
Outstanding, well structure explanation/apologetics on not only the most productive but the most moral economic framework mankind has ever devised. Outstanding introduction on not only capitalism but economics in general.
The only disappointment was the lack of historical perspective: how did such a optimal -- as opposed to perfect -- institution come about? (To be fair, Murphy did point to books that do cover that subject.)
If colleges would assign this book instead of the trendy big government -isms they teach, the world would be a considerably better place.
The only disappointment was the lack of historical perspective: how did such a optimal -- as opposed to perfect -- institution come about? (To be fair, Murphy did point to books that do cover that subject.)
If colleges would assign this book instead of the trendy big government -isms they teach, the world would be a considerably better place.
October 5, 2009
Excellent overview and apologia of capitalism. Shows how investors, middlemen, and even speculators provide value, whereas government intervention tends to be a net loss to the nation and only help a few special interests on the backs of the rest (e.g. unions and car tariffs, or even welfare and rent control, which both contribute to the destruction of families and neighborhoods).
January 10, 2022
I'm not staunchly anti-capitalism but arguing that labor unions and higher minimum wage are bad? Nah son, this ain't it.
January 19, 2010
This is a useful little peek into the wondrous world of capitalism. Robert Murphy is a regular contributor to the Austrian school of economics website who here explains in very easy to read and understand terms the benefits that so many people fail to appreciate about free market capitalism. He exposes common misconceptions and intentional deceptions from Marxist philosophers and big-government supporters of every stripe. I thoroughly enjoyed this book, but admittedly didn't learn much new information since I've read all this elsewhere and agree with the message. In other words, I've been sitting in the choir of Murphy's church for many years and have heard this sermon before. Still, hearing the truth yet again never hurt anyone. This is a great intro to a wide range of topics that will benefit most readers. It is a very easy and accurate look into many economic topics without the grinding effort required to read Friedman or Hayek.
The superiority of free markets over government control is so overwhelming and obvious that it manifests itself in a multitude of ways. It increases our lifespans, makes our lives more comfortable, frees up time to do activities beyond mere survival, allows us the option to explore different areas of the world, and type goodreads reviews and distribute the reviews to people across the planet at virtually no cost. Murphy further shows that capitalism combats racism and discrimination, increases product safety, improves the environment, and rewards merit and achievement better than any competing system or conceivable alternative.
Murphy provides numerous juicy facts to bolster these arguments. These facts and the soundness of the theory behind them would make me embarrassed to try to contradict the benefits or decry the evils of capitalism. Marxists and other pro-government people evidently haven't the same sense of shame but they can be quite entertaining. They remind me of witchdoctors encouraging the cancer-stricken to drink 3 quarts of virgin female goat's blood in order to cure the brain tumor. At what point do you just recognize that what you're spouting is utter nonsense? Some of the more interesting facts follow.
Julian Simon won a bet against Paul Ehrlich over commodity prices. Ehrlich thought that precious metals and other resources were being exhausted by human activity so that the price would increase to reflect the underlying scarcity. Simon believed in capitalism and freedom and thought that increased demand would lead to increased supply and new, cheaper technologies to find and extract the resources. Simon won the bet when every single metal that Ehrlich was allowed to select under the terms of the bet decreased in real (inflation adjusted) prices. Ehrlich evidently learned nothing from the wager and continued to spout nonsense about exhausting precious finite resources.
Proven worldwide oil reserves in 1944 amounted to 51 billion barrels. In 2002, after 58 years of "myopic" gas guzzling, proven worldwide oil reserves increased to 1,266 billion barrels.
Ronald Reagan's tax cuts increased receipts by the federal government every single year except 1983. The reason the debt increased was not because of the tax cuts, which as already mentioned increased revenue, but because federal spending increased at an even faster rate. Bill Clinton's supposedly balanced budget also increased the debt every single year he was in office, but because of accounting tricks and gimmicks that would be illegal for a private individual or corporation, this fact is largely ignored. To illustrate, imagine you allowed people to begin collecting social security at the age of 40 in the year 2025, there would not technically be a current new outlay of money to influence the annual deficit, but obviously the debt would go up. Slick Willy thus was not nearly as fiscally responsible as some would like to believe.
Amtrak is a quasi-governmental agency created in 1971 to bail out the heavily regulated and taxed private rail lines. The federal government owns all shares of preferred stock and the Senate confirms presidential appointments to the board of directors. Amtrak has lost money every single year it has existed, and the taxpayer is forced to subsidize this business to the tune of $1.2 billion per year as in 2005.
The United States Post Office with 700,000 employees is the 3rd largest employer in the U.S. behind the Department of Defense and Wal-Mart. In 1981, the price for a first class stamp was 18 cents; in 2007 it is 39 cents, which is an increase of 15% in the real price of stamps over the last 25 years. Has service improved significantly? That's a rhetorical question. By comparison to a private industry, the price of a kilobyte of memory in personal computers in 1981 was $47. Today, it is a tiny fraction of a penny.
Standard Oil, the oft-cited example of the evils of monopoly, captured 90% of the market for oil in 20 years. However, it didn't achieve this dominance by gouging the consumer but rather by lowering the price from 58 cents a gallon to 8 cents per gallon. Standard Oil took advantage of economies of scale and received transportation discounts from railroads by delivering large and steady quantities of oil on the railroad tracks. 60 carloads per day allowed the railroads to offer bulk discounts to its largest and most reliable customer who then passed those savings onto the final consumers.
Murphy offers the following 12 step plan to understanding the free market. These are just ideas to keep in mind when contemplating any political "solution."
1. Admit that government "solutions" are a problem
2. Have faith that human beings can interact peacefully, and that economic blessings are available for all.
3. Surrender to the fact that certain social ills cannot be eradicated by force or political "will."
4. Ask yourself, "Do I want to advocate self-sufficiency and voluntary means, or do I want to look to politicians every time I don't like something?"
5. Survey the past record of governments when it comes to economic "planning" or other alleged improvements.
6. Learn to look for the hidden costs of government intervention, rather than the superficial benefits.
7. Understand the role of market prices, and why tampering with them interferes with the job they have to perform.
8. Study history. Examine whether governments that violated private property rights stayed out of their citizens' other affairs.
9. Before condemning a market outcome as unjust, first understand why it occurs.
10. Study other "spontaneous" social institutions, such as language and science, where no one is "in charge" and yet the outcome is quite orderly.
11. When politicians propose a new program, remember how much they said it would cost at the outset. Compare that number to the actual amount spent.
12. Go through the newspaper and discover how government meddling causes or exacerbates the conflict in virtually every story.
The superiority of free markets over government control is so overwhelming and obvious that it manifests itself in a multitude of ways. It increases our lifespans, makes our lives more comfortable, frees up time to do activities beyond mere survival, allows us the option to explore different areas of the world, and type goodreads reviews and distribute the reviews to people across the planet at virtually no cost. Murphy further shows that capitalism combats racism and discrimination, increases product safety, improves the environment, and rewards merit and achievement better than any competing system or conceivable alternative.
Murphy provides numerous juicy facts to bolster these arguments. These facts and the soundness of the theory behind them would make me embarrassed to try to contradict the benefits or decry the evils of capitalism. Marxists and other pro-government people evidently haven't the same sense of shame but they can be quite entertaining. They remind me of witchdoctors encouraging the cancer-stricken to drink 3 quarts of virgin female goat's blood in order to cure the brain tumor. At what point do you just recognize that what you're spouting is utter nonsense? Some of the more interesting facts follow.
Julian Simon won a bet against Paul Ehrlich over commodity prices. Ehrlich thought that precious metals and other resources were being exhausted by human activity so that the price would increase to reflect the underlying scarcity. Simon believed in capitalism and freedom and thought that increased demand would lead to increased supply and new, cheaper technologies to find and extract the resources. Simon won the bet when every single metal that Ehrlich was allowed to select under the terms of the bet decreased in real (inflation adjusted) prices. Ehrlich evidently learned nothing from the wager and continued to spout nonsense about exhausting precious finite resources.
Proven worldwide oil reserves in 1944 amounted to 51 billion barrels. In 2002, after 58 years of "myopic" gas guzzling, proven worldwide oil reserves increased to 1,266 billion barrels.
Ronald Reagan's tax cuts increased receipts by the federal government every single year except 1983. The reason the debt increased was not because of the tax cuts, which as already mentioned increased revenue, but because federal spending increased at an even faster rate. Bill Clinton's supposedly balanced budget also increased the debt every single year he was in office, but because of accounting tricks and gimmicks that would be illegal for a private individual or corporation, this fact is largely ignored. To illustrate, imagine you allowed people to begin collecting social security at the age of 40 in the year 2025, there would not technically be a current new outlay of money to influence the annual deficit, but obviously the debt would go up. Slick Willy thus was not nearly as fiscally responsible as some would like to believe.
Amtrak is a quasi-governmental agency created in 1971 to bail out the heavily regulated and taxed private rail lines. The federal government owns all shares of preferred stock and the Senate confirms presidential appointments to the board of directors. Amtrak has lost money every single year it has existed, and the taxpayer is forced to subsidize this business to the tune of $1.2 billion per year as in 2005.
The United States Post Office with 700,000 employees is the 3rd largest employer in the U.S. behind the Department of Defense and Wal-Mart. In 1981, the price for a first class stamp was 18 cents; in 2007 it is 39 cents, which is an increase of 15% in the real price of stamps over the last 25 years. Has service improved significantly? That's a rhetorical question. By comparison to a private industry, the price of a kilobyte of memory in personal computers in 1981 was $47. Today, it is a tiny fraction of a penny.
Standard Oil, the oft-cited example of the evils of monopoly, captured 90% of the market for oil in 20 years. However, it didn't achieve this dominance by gouging the consumer but rather by lowering the price from 58 cents a gallon to 8 cents per gallon. Standard Oil took advantage of economies of scale and received transportation discounts from railroads by delivering large and steady quantities of oil on the railroad tracks. 60 carloads per day allowed the railroads to offer bulk discounts to its largest and most reliable customer who then passed those savings onto the final consumers.
Murphy offers the following 12 step plan to understanding the free market. These are just ideas to keep in mind when contemplating any political "solution."
1. Admit that government "solutions" are a problem
2. Have faith that human beings can interact peacefully, and that economic blessings are available for all.
3. Surrender to the fact that certain social ills cannot be eradicated by force or political "will."
4. Ask yourself, "Do I want to advocate self-sufficiency and voluntary means, or do I want to look to politicians every time I don't like something?"
5. Survey the past record of governments when it comes to economic "planning" or other alleged improvements.
6. Learn to look for the hidden costs of government intervention, rather than the superficial benefits.
7. Understand the role of market prices, and why tampering with them interferes with the job they have to perform.
8. Study history. Examine whether governments that violated private property rights stayed out of their citizens' other affairs.
9. Before condemning a market outcome as unjust, first understand why it occurs.
10. Study other "spontaneous" social institutions, such as language and science, where no one is "in charge" and yet the outcome is quite orderly.
11. When politicians propose a new program, remember how much they said it would cost at the outset. Compare that number to the actual amount spent.
12. Go through the newspaper and discover how government meddling causes or exacerbates the conflict in virtually every story.
March 3, 2021
I listened to this on Audible with my youngest son as part of his economics study. I enjoyed it and the points made were similar to ones we read in other books. This helped to solidify concepts for me. However, I am still very much a novice and definitely need to listen again in the future as well as read some of the suggested books I’m not supposed to read.
March 26, 2021
Great book! Many people who claim to be economists (e.g. AOC) would really benefit from the clear explanations in this book. Politicians (and actually ANYONE) would be better for reading this! Highly recommended.
June 16, 2018
When I started reading this book it became increasingly obvious that the book was written by an anarcho-libertarian.Ìý This is not necessarily a bad thing [1], as I certainly have some good things to say about libertarian economic theory despite my disdain for it as a social philosophy.Ìý This book definitely fits the bill of being politically incorrect, but that is not necessarily a bad thing, even if some of the books the book recommends (including one by Thomas DiLorenzo) are not always the best to promote the author's worldview or the massive claims that he makes for capitalism as a force for good, which is not the way it is generally viewed by contemporary commentators who trust in the bungling of bureaucrats far more than the invisible and subtle workings of free markets and people with a clear-eyed knowledge about their self-interest and what serves it best.Ìý This is a book that says a lot of things that I think many people simply find hard to accept, although I find it greatly humorous that the author tends to assume that the reader is going to be in the capitalist class, which I am not sure is something that can be said for me.
This book of less than 200 pages is divided into sixteen short chapters that explore different facets of capitalism, beginning with a quiz that seeks to convince the reader that they are a capitalist pig in a somewhat tongue-in-cheek kind of way.Ìý The contents o the book begin with a discussion of capitalism, profits, and entrepreneurs (1) and then move on to a discussion of the signaling value of prices in a market economy (2) and the problem with minimum wages and other misguided attempts to benefit labor (3).Ìý After this the author moves on to discuss the free market case against anti-discrimination laws by pointing out the penalties the free market gives to racists (4) and a somewhat counterintuitive discussion about slavery and government (5) as well as about the relationship between capitalism and the environment (6) and safety (7).Ìý After that the author talks about trade deficits and debts (8), money and banking (9), and the government role in depressions and economic cycles (10).Ìý After that the author takes on some sacred cows of popular government programs (11) as well as public transportation and the post office (12), the self-serving nature of many antitrust lawsuits (13), the downside of trade wars (14), as well as making money through foreign trade (15) and the value of the investor class (16).
By and large, even if I do not agree with everything the author says, there is a lot of value in what he says.Ìý In particular, I appreciate the way that the author gives a great deal of legitimacy to those who engage in the often politically unpopular role of being middlemen between suppliers and consumers whose behavior communicates signals to everyone else about issues of supply and demand that allows others to respond with a minimum of disruption.Ìý Ultimately, a lot of the concerns in this book boil down to a question of trust.Ìý Do we trust that people who are free to communicate their preferences and their feelings and their understanding through the market are going to do better than people attempting to direct the economic destiny of political communities that will inevitably bungle things?Ìý Do we see only what we intend to do with our policies, or do we have an eye to the implications and repercussions that we do, that which is unseen rather than only that which is seen?Ìý If the book prompts its readers to think more seriously about the distortions and problems that result from misguided attempts to control the economic behavior of others, then it will likely have done good work.
[1] See, for example:
This book of less than 200 pages is divided into sixteen short chapters that explore different facets of capitalism, beginning with a quiz that seeks to convince the reader that they are a capitalist pig in a somewhat tongue-in-cheek kind of way.Ìý The contents o the book begin with a discussion of capitalism, profits, and entrepreneurs (1) and then move on to a discussion of the signaling value of prices in a market economy (2) and the problem with minimum wages and other misguided attempts to benefit labor (3).Ìý After this the author moves on to discuss the free market case against anti-discrimination laws by pointing out the penalties the free market gives to racists (4) and a somewhat counterintuitive discussion about slavery and government (5) as well as about the relationship between capitalism and the environment (6) and safety (7).Ìý After that the author talks about trade deficits and debts (8), money and banking (9), and the government role in depressions and economic cycles (10).Ìý After that the author takes on some sacred cows of popular government programs (11) as well as public transportation and the post office (12), the self-serving nature of many antitrust lawsuits (13), the downside of trade wars (14), as well as making money through foreign trade (15) and the value of the investor class (16).
By and large, even if I do not agree with everything the author says, there is a lot of value in what he says.Ìý In particular, I appreciate the way that the author gives a great deal of legitimacy to those who engage in the often politically unpopular role of being middlemen between suppliers and consumers whose behavior communicates signals to everyone else about issues of supply and demand that allows others to respond with a minimum of disruption.Ìý Ultimately, a lot of the concerns in this book boil down to a question of trust.Ìý Do we trust that people who are free to communicate their preferences and their feelings and their understanding through the market are going to do better than people attempting to direct the economic destiny of political communities that will inevitably bungle things?Ìý Do we see only what we intend to do with our policies, or do we have an eye to the implications and repercussions that we do, that which is unseen rather than only that which is seen?Ìý If the book prompts its readers to think more seriously about the distortions and problems that result from misguided attempts to control the economic behavior of others, then it will likely have done good work.
[1] See, for example:
July 17, 2019
Politically incorrect guide to the capitalism is an attempt to refute some of the popular myths propounded by anti-capitalists. Each chapter is devoted to a slightly different subject. The author discusses such topics as ecology, banking, the profits of the capitalists, slavery, international trade and others. In addition, at the end of each chapter are propositon of books with are complementary expertise in the field. It is unfortunate that most of these books has not been translated into Polish. I sincerely recommend the book as a gift together with Economics in One Lesson by Henry Hazlitt, because both are great as an introduction to free-market economics. But the book has some drawbacks. Main complaint is that the author touched many topics very briefly (the work Hazlitt did the same). On the other hand, it supossed to be only a brief explanation of certain myths for people, that don't have any knowlegde in ecomonics.
//polish
Niepoprawny politycznie przewodnik po kapitalizmie jest próbą obalenia niektórych popularnych mitów głoszonych przez antykapitalistów. Każdy rozdział jest poświęcony trochę innej tematyce. Autor porusza takie tematy jak ekologia, bankierstwo, zyski kapitalistów, niewolnictwo, międzynarodowy handel i inne. Oprócz tego na końcu każdego rozdziału znajdują się proponowane pozycje książkowe uzupełniające wiedzę w danej dziedzinie. Szkoda, że większość wymienionych pozycji nie została przełożona na język polski. Książkę szczerze polecam jako prezent razem z Ekonomią w jednej lekcji Henry'ego Hazlitta, ponieważ obie świetnie nadają się jako wprowadzenie do wolnorynkowej ekonomii. Jednak książka ma pewne wady. Według mnie głównym zarzutem jest to, że autor poruszył wiele tematów bardzo pobieżnie(z resztą dzieło Hazlitta zrobiło to samo). Z drugiej strony miało to być jedynie krótkie wyjaśnienie pewnych mitów dla osób nieobeznanych z ekonomią.
//polish
Niepoprawny politycznie przewodnik po kapitalizmie jest próbą obalenia niektórych popularnych mitów głoszonych przez antykapitalistów. Każdy rozdział jest poświęcony trochę innej tematyce. Autor porusza takie tematy jak ekologia, bankierstwo, zyski kapitalistów, niewolnictwo, międzynarodowy handel i inne. Oprócz tego na końcu każdego rozdziału znajdują się proponowane pozycje książkowe uzupełniające wiedzę w danej dziedzinie. Szkoda, że większość wymienionych pozycji nie została przełożona na język polski. Książkę szczerze polecam jako prezent razem z Ekonomią w jednej lekcji Henry'ego Hazlitta, ponieważ obie świetnie nadają się jako wprowadzenie do wolnorynkowej ekonomii. Jednak książka ma pewne wady. Według mnie głównym zarzutem jest to, że autor poruszył wiele tematów bardzo pobieżnie(z resztą dzieło Hazlitta zrobiło to samo). Z drugiej strony miało to być jedynie krótkie wyjaśnienie pewnych mitów dla osób nieobeznanych z ekonomią.
December 9, 2018
I have to say, I'm really (no like seriously, I'm not exaggerating at all) digging these Politically Incorrect Guides more than any other series I've been exposed to. Homeschoolers should use them as curriculum (or at least a curriculum supplement depending on the subject), and public/private schoolers should read them during/after high school to be deprogrammed from the liberal garbage that permeates most every text-book (even Christian ones) out there. This is also the series college students need. I mean it. All the information is right there. If you want to look more in depth you can check out the sources and recommended reading books. I cannot necessarily endorse every single point perpetuated by the series, but is there anything that any person is going to agree 100% with? Not really. But since these books stick so closely to fact you can't really argue with them---and the Capitalism installment is certainly no exception. It does not disappoint. I like to describe it as the brute facts with a little common sense. I'm left questioning, "How can anyone question capitalism? Would they not either be ignorant or evil?" Sounds extreme right? Of course it does in our cultural context, but why run from something simply because of how it sounds? Shouldn't we be evaluating things on their merits of truthfulness? I challenge those out there who doubt the wisdom of a free market---Get this book! It's nothing complex. It's actually very simple and very logical. You'll have a chance to think through all the common free-market arguments and concepts as well as read several chapters on Macro-economic government history and policy with real-world examples. Get it, read it, believe it, spread the word.
February 10, 2010
Read the PIG series books to hear something other than the common notions spread through out the government schools, and the establishment liberals and progressives of today in colleges and government.
Capitalism is the system that provides the greatest opportunities for the most amount of people and Murphy breaks it down so that those without a foundation in econ and its history can understand and see the basic problems that come about when this system is hampered by the government interference we currently have around our necks.
The standard fare of profits, inflation, markets, money and banking are all touched on but to throw a curve he discusses slavery and anti discrimination laws and other things that you may not think about when it comes to our economic lives.
The Austrian econ. guys love to shatter economic and historical myths and its no different here. Murphy is brilliant, witty and funny. Catch his blog at FreeAdvice.com
Capitalism is the system that provides the greatest opportunities for the most amount of people and Murphy breaks it down so that those without a foundation in econ and its history can understand and see the basic problems that come about when this system is hampered by the government interference we currently have around our necks.
The standard fare of profits, inflation, markets, money and banking are all touched on but to throw a curve he discusses slavery and anti discrimination laws and other things that you may not think about when it comes to our economic lives.
The Austrian econ. guys love to shatter economic and historical myths and its no different here. Murphy is brilliant, witty and funny. Catch his blog at FreeAdvice.com
July 16, 2012
Any economics writer who regularly quotes Ayn Rand and credits Rush Limbaugh as an inspiration is bound to stir up a good deal of controversy, but Robert Murphy takes contrarianism to a whole new level by singing the praises of such seemingly indefensible notions as outsourcing jobs and awarding "golden parachutes" to CEOs who have driven their companies into the tank. However, his arguments are both logical and supported by the data, so it would be a big mistake simply to write this book off as just another outpouring of heartless neo-conservatism. Actually, in many ways, it's not even all that conservative a book, as Murphy is both a strong proponent of globalism and a great pooh-pooher of the right-wing's insistence on the perils of refusing to "buy American." The PIG Guide to Capitalism provides a wealth of information for people who want a deeper understanding of the cold, hard truth behind real world economics.
March 30, 2013
Robert Murphy's "Politically Incorrect Guide to Capitalism" is a serviceable introduction to the ideas of free market capitalism. The writing is clear and even entertaining throughout. Murphy manages to cover most of the more important aspects of how free markets work.
That said, even though I agree with most of his conclusions, I found the arguments to be somewhat weak in several areas (e.g. his section on Austrian Business Cycle Theory is more or less a paragraph long). I realize this may be an unfair criticism for a book that is designed to be an introduction, but I felt like he could have done a little more.
Overall, I still enjoyed the book, and I think the positives outweigh the negatives. For anyone wanting a slightly more in depth look at economics, I'd recommend Economics in One Lesson (Hazlitt), Basic Economics (Sowell), or Common Sense Economics (Gwartney).
That said, even though I agree with most of his conclusions, I found the arguments to be somewhat weak in several areas (e.g. his section on Austrian Business Cycle Theory is more or less a paragraph long). I realize this may be an unfair criticism for a book that is designed to be an introduction, but I felt like he could have done a little more.
Overall, I still enjoyed the book, and I think the positives outweigh the negatives. For anyone wanting a slightly more in depth look at economics, I'd recommend Economics in One Lesson (Hazlitt), Basic Economics (Sowell), or Common Sense Economics (Gwartney).
August 3, 2017
Like the other titles in this series, this one is really well done. On par with Tom Woods' US history title of the series, Bob Murphy shows a grasp of the subject through and through. Murphy is one of the best Austrian theory economists out there. He is able to communicate the theory, break it down into simple terms, provide examples, and provide illustrations to support the theory. If you haven't heard a presentation by Dr. Murphy he's entertaining as well as educational.
What Dr. Murphy does in this book is dismantle the traditional Keynian economics model, shows the errors of socialism, and show the negative consequences of government inclusion in the market. This is a great primer for those wishing to get into economics. I would say this is about as great as Henry Hazlitt's magnum opus Economics In One Lesson. High praise indeed; and well deserved. Final Grade - A+
What Dr. Murphy does in this book is dismantle the traditional Keynian economics model, shows the errors of socialism, and show the negative consequences of government inclusion in the market. This is a great primer for those wishing to get into economics. I would say this is about as great as Henry Hazlitt's magnum opus Economics In One Lesson. High praise indeed; and well deserved. Final Grade - A+
December 12, 2018
The correct guide
The book is easy to read and sway every important topic at issue. It is also well punctuated by numerous recommendations of books you can read if you want to enhance your knowledge on some theme. The discussion technic that Murphy uses adds some transparency to the book because he doesn't disqualify the opinions of the capitalism's main critics. On the contrary, he puts them just in front of you, offering the reader the chance of approving or not. In this sense I think that what he does is to illustrate upon a fair basis rather than rightly dismiss what others say.
At the end of the book you have all the references required to follow up the learning on this both wonderful but also misunderstood topic.
There's more to capitalism out there than we can see with our eyes. Highly recommended.
The book is easy to read and sway every important topic at issue. It is also well punctuated by numerous recommendations of books you can read if you want to enhance your knowledge on some theme. The discussion technic that Murphy uses adds some transparency to the book because he doesn't disqualify the opinions of the capitalism's main critics. On the contrary, he puts them just in front of you, offering the reader the chance of approving or not. In this sense I think that what he does is to illustrate upon a fair basis rather than rightly dismiss what others say.
At the end of the book you have all the references required to follow up the learning on this both wonderful but also misunderstood topic.
There's more to capitalism out there than we can see with our eyes. Highly recommended.
April 26, 2018
I would probably rate this about 3.5. It makes some good and valid arguments in favor of capitalism, and explains many of the basics. However, biggest drawback is that it seems to put too much faith in capitalism as the cure to economic issues in a very quick and effective manner. It looks at the best case for capitalism, rather than how it has tended to play out in countries that have employed it. While this system has brought more prosperity to the world than any other, it does not always work in a best case scenario.
January 3, 2018
This book truly breaks down Capitalism and economics concepts into easily digestible concepts. I liked the format of the book and wish I had read it in book form rather than via audiobook. There were many suggested readings, (titled "Books You're Not Supposed to Read") and I would've liked to have written them down read later.
Overall, I feel it was an informative text and I learned quite a bit from it.
Overall, I feel it was an informative text and I learned quite a bit from it.
January 20, 2018
Great read. Even if this book doesn't convert you to an anarcho-capitalist, you will at least be challenged to think about and consider new ways you may not have before about how the market instead of government can not only handle things like zoning and irrational discrimination but in a better, more efficient way all while leaving everyone's right to freedom and personal property intact.
May 25, 2019
This book provides a pro-capitalism argument for everything and never concedes any ground or acknowledges merit in the arguments on the other side. Three examples:
1) Bald eagles and white rhinos are different from chickens and cows for one reason—private ownership. Private owners have an incentive to preserve their assets therefore we have more chickens than bald eagles. This ignores the fact that there is a market for chickens and cows and not for rhinos and eagles. Also it views wild animals v. domestic animals in a vacuum. DDT led to fewer pests and higher crop yields for farmers therefore pure capitalism incentivized using it. This ignores the fact that the pesticide infiltrated the food chain, lowered the thickness of bird eggs and prevented reproduction. However, farmers have little economic reason to preserve bald eagles. Wouldn’t pure economics support driving bald eagles to extinction?
2) The free market solutions for discrimination and harassment in the book are ludicrous. In a perfect society, everyone would freely pay a fair and proportionate amount to the fire department and police department for the services provided...that is not the world we live in so we need mandatory taxes. The same holds true for discrimination. With imperfect information and facets of the population willing to accept inefficiencies imposed by harassment and discrimination, pure capitalism will not, and has not, worked.
3) The postal system: No doubt the free market will lower the prices and increase efficiency of postal delivery for some. However, American society has placed a value on providing the service to all citizens, including those that do not live in viable postal markets. The private sector would not service those routes and that value would be lost to the nation. The author wholly fails to address this equity when covering the postal system. Whether or not the value to society is worth the extra costs is an entirely different issue.
The pure capitalist arguments are absurd and undermine many of the arguments in the book as the reader is left wondering what else the author is hiding to manipulate the reader when making his points.
The reason this received two stars is because it does provide pro-capitalist arguments on many topics that I have not seen that approach with before. However, explore the other side before buying these concepts wholesale.
1) Bald eagles and white rhinos are different from chickens and cows for one reason—private ownership. Private owners have an incentive to preserve their assets therefore we have more chickens than bald eagles. This ignores the fact that there is a market for chickens and cows and not for rhinos and eagles. Also it views wild animals v. domestic animals in a vacuum. DDT led to fewer pests and higher crop yields for farmers therefore pure capitalism incentivized using it. This ignores the fact that the pesticide infiltrated the food chain, lowered the thickness of bird eggs and prevented reproduction. However, farmers have little economic reason to preserve bald eagles. Wouldn’t pure economics support driving bald eagles to extinction?
2) The free market solutions for discrimination and harassment in the book are ludicrous. In a perfect society, everyone would freely pay a fair and proportionate amount to the fire department and police department for the services provided...that is not the world we live in so we need mandatory taxes. The same holds true for discrimination. With imperfect information and facets of the population willing to accept inefficiencies imposed by harassment and discrimination, pure capitalism will not, and has not, worked.
3) The postal system: No doubt the free market will lower the prices and increase efficiency of postal delivery for some. However, American society has placed a value on providing the service to all citizens, including those that do not live in viable postal markets. The private sector would not service those routes and that value would be lost to the nation. The author wholly fails to address this equity when covering the postal system. Whether or not the value to society is worth the extra costs is an entirely different issue.
The pure capitalist arguments are absurd and undermine many of the arguments in the book as the reader is left wondering what else the author is hiding to manipulate the reader when making his points.
The reason this received two stars is because it does provide pro-capitalist arguments on many topics that I have not seen that approach with before. However, explore the other side before buying these concepts wholesale.
October 14, 2022
I was in the mood to suffer and found a free pdf of this book so I decided to give it a quick read. I will admit that I did not read the entire thing, it seems unnecessary when a quick overview of the sections and deep dive into a few shows what the book actually is, a combination of straw men arguments from whatever "anti-capitalist" boogeyman the author decides to use.
The section on the environmental impacts of capitalism was particularly egregious. Lets start with the claim that environmentalists are concerned with the 'selfish consumption of scare resources such as oil" because "every trip to the pump today translates into fewer car trips for the grandkids fifty years from now" (Page 50). This is actually inspired in its ability to misrepresent what real life conservationists are concerned about. They are concerned that increased oil usage will lead to rapid environmental temperature changes on a scale which global ecosystems cannot adapt to, destroying entire habits, not that our kids won't be able to burn the same amount of oil as us...
The argument that we only need to commodify endangered species to save them is a beautiful distillation of the libertarian worldview put forward by the author. Reality only has value as long as it can be bought, sold, or invested in. The author doesn't mention that rhinos are being poached specifically because a market exists for their body parts.
Anyway this is not a "book" it is a pamphlet aimed at people without the critical thinking skills to see through its paper thin arguments. It is propaganda and should be treated as such. The lack of citations from any reputable sources, particularly for the statement that "reputable scientists will testify, the earth is not on the brink of destruction" (page 49), make this painfully clear. Please do not waste your time reading this.
The section on the environmental impacts of capitalism was particularly egregious. Lets start with the claim that environmentalists are concerned with the 'selfish consumption of scare resources such as oil" because "every trip to the pump today translates into fewer car trips for the grandkids fifty years from now" (Page 50). This is actually inspired in its ability to misrepresent what real life conservationists are concerned about. They are concerned that increased oil usage will lead to rapid environmental temperature changes on a scale which global ecosystems cannot adapt to, destroying entire habits, not that our kids won't be able to burn the same amount of oil as us...
The argument that we only need to commodify endangered species to save them is a beautiful distillation of the libertarian worldview put forward by the author. Reality only has value as long as it can be bought, sold, or invested in. The author doesn't mention that rhinos are being poached specifically because a market exists for their body parts.
Anyway this is not a "book" it is a pamphlet aimed at people without the critical thinking skills to see through its paper thin arguments. It is propaganda and should be treated as such. The lack of citations from any reputable sources, particularly for the statement that "reputable scientists will testify, the earth is not on the brink of destruction" (page 49), make this painfully clear. Please do not waste your time reading this.
January 9, 2021
Much of what you think you know about economics and capitalism has been fed to you by politically correct economists, leftist professors, and compliant media to spin it in the worst light possible. At the same time the failed policies and principles of socialism/communism are presented as a more fair and friendly system that will level the playing field by redistributing what successful people have earned to those who largely have not participated in driving their own success. In this book, The Politically Incorrect Guide to Capitalism by Robert P. Murphy, the author looks at the fallacies that the socialist/communist left presents as proven ways to succeed. He proceeds to dismantle their arguments with facts and examples of their glaring failures and counters with the proven power of capitalism to foster individual success for those who are willing to work for it. The author is a scholar and frequent speaker at the Ludwig von Mises Institute who attacks the nonsensical theories of the left and shows with many examples why they are false to the detriment of the very people they claim to be trying to help. Great book! Also read anything by Dr. Thomas Sowell to improve your understanding on this topic.
December 23, 2021
Another solid read in The Politically Incorrect Guide series. The book begins with its definitions of capitalism and socialism - the former being a system in which people are free to choose their own jobs, contract, and use their private property without outside interference, and the latter being a system where the government allocates resources and jobs and manages the economy via central planning. The subsequent chapters present pro-capitalism arguments on a litany of issues such as minimum wage, rent control, safety regulations, environmentalism, free trade vs. tariffs, and the (salutary) roles of middlemen and speculators. Imo, some of the points are well-articulated whereas others lack depth. Great quote by Henry Hazlitt (among others) placed in a sidebar of the book: “The bad economist sees only what immediately strikes the eye; the good economist also looks beyond. The bad economist sees only the direct consequences of a proposed course; the good economist looks also at the longer and indirect consequences. The bad economist sees only what the effect of a given policy has been or will be on one particular group; the good economist inquires also what the effect of the policy will be on all groups.�
May 26, 2022
I liked this book a lot. Murphy explains in plain language and with cogent examples, how and why so many people are so wrong about capitalism. He deals only with the economics, never attributing bad motives to those pushing the misconceptions, mistakes and shibboleths of the socialists, communists, statists and anti-capitalists who continue to push this nonsense even in the face of overwhelming evidence.
Many of the arguments result from a focus on the results of some policy for only a select group of people, while ignoring the effects on everyone else. For example, highlighting the people who got a raise as the result of a minimum wage increase, and failing to discuss the loss of many jobs and the increase in prices caused by the increased cost of labor without a corresponding increase in productivity.
The information here is not new, but is well explained in language anyone can understand, degrees in econ and high level math not required. My one significant issue is that the book is old (2005) and dome of the examples are dated. The principles haven't changed though so the value of the book is still very high.
Many of the arguments result from a focus on the results of some policy for only a select group of people, while ignoring the effects on everyone else. For example, highlighting the people who got a raise as the result of a minimum wage increase, and failing to discuss the loss of many jobs and the increase in prices caused by the increased cost of labor without a corresponding increase in productivity.
The information here is not new, but is well explained in language anyone can understand, degrees in econ and high level math not required. My one significant issue is that the book is old (2005) and dome of the examples are dated. The principles haven't changed though so the value of the book is still very high.
September 19, 2024
This is solid book, and think it is best categorized as a organizational approach exposing or debunking economic myths from history. For example, how it was not free market capital that caused the Great Depression, but the failure of the Federal Reserve to appropriately respond by adding capital to the market instead of standing by and doing nothing for the first two years - this delay actually turned what would have been a severe recession into the Great Depression.
The book follows the philosophy of monetarism (School of Chicago) and the School of Austria Economic Theory, and for that, I believe it is spot on. Again, it is a solid read, but I give 3 stars because it does not go into depth on any topic, but rather reads as topic by topic approach to each economic myth. It feels a tad repetitive in that respect, but there are gems or nuggets of knowledge worth remembering, and their recommended book list is superior.
The book follows the philosophy of monetarism (School of Chicago) and the School of Austria Economic Theory, and for that, I believe it is spot on. Again, it is a solid read, but I give 3 stars because it does not go into depth on any topic, but rather reads as topic by topic approach to each economic myth. It feels a tad repetitive in that respect, but there are gems or nuggets of knowledge worth remembering, and their recommended book list is superior.
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