The Failure of Laissez Faire Capitalism and Economic Dissolution of the West

by Paul Craig Roberts

This very readable book by a distinguished economist, Wall Street Journal editor, and Assistant Secretary of the US Treasury is a major challenge both to economic theory and to media explanations of the ongoing 21st century economic crisis. The one percent have pulled off an economic and political revolution. By offshoring manufacturing and professional service jobs, US corporations destroyed the growth of consumer income, the basis of the US economy, leaving the bulk of the population mired in debt. Deregulation was used to concentrate income and wealth in fewer hands and financial firms in corporations “too big to fail,” removing financial corporations from market discipline and forcing taxpayers in the US and Europe to cover bankster losses. Environmental destruction has accelerated as economists refuse to count the exhaustion of nature’s resources as a cost and as corporations impose the cost of their activities on the environment and on third parties who do not share in the profits. This is the book to read for those who want to understand the mistakes that are bringing the West to its knees.

Genres: Economics, Politics, Nonfiction, History, Philosophy

182 pages, Kindle Edition

First published February 12, 2013

Reviews

[Scott Holstad · Rating 5 out of 5]

Pretty good, if a little depressing. The ones griping are the same ones who often say crap like "America -- Love It or Leave It," the irony being often they and/or their family/community are most often the ones impacted by what the author discusses. Drinking the Koo-laid, voting against their own interests. One doesn't have to like or even agree with everything the author puts out there, but to dismiss it out of hand because you don't like what you *think* the author says (when you've likely not read it or if so, not understood it), is indicative of the intellectual dishonesty found so often in the more accurate intellectual bankruptcy on the part of the extremes on each end. Agree with part, all, none, this is a fairly serious analysis and deserves a fairly serious objective and candid response by readers rather than resorting to juvenile insults that don't hurt the author and only show one to be incapable of an intelligent response or critique and thus we get what we see more and more of -- a resort to name calling, insults and petty slogans on the parts of too many people unequipped to engage, let alone unwilling to in the process. This is a challenging book that posits challenging premises. It merits thought and consideration of substance. Whether one agrees with part, all or none of what the author argues is up to the reader. Recommended.

[Connie · Rating 5 out of 5]

Not only is this a very well researched book (a hallmark of all books written by Dr. Paul Craig Roberts), it is also very well written. Considering that he was Pres. Reagan's Cabinet, I have been pleasantly surprised to see that over the years he has eschewed supply-side/trickle-down economic theory as being a workable model!

However, the main gist of this book deals with the harm that has been done not only to our country but also to Third World nations by the explosion of outsourcing. Even though frequently the terms "outsourcing" and "free trade" are mentioned in the same breath, they have absolutely nothing to do with each other, and the former is harmful to all concerned, whereas the latter can be beneficial, if practiced correctly.

I will be reading more by this author – – I have always enjoyed his short articles, but in his longer works, I appreciate the clarity with which he explains complicated economic theory and practice. I also appreciate his straightforward approach to the economic and political situation in our country today.

It is really unfortunate that every single Congress Critter does not read this book and others by this economist. It should be required reading for all in government, especially federal government. Sadly, our Congress Critters seem unable to read anything but that which is put before them by the powerful lobbyists.

[Darrell · Rating 4 out of 5]

Excellent exposition on how the off-shoring of U.S. jobs are turning the country into a Third World nation. Roberts brings out some interesting points that are not considered when speaking of the current economic crisis. One point is that with the collapse of the Soviet Union, there is no counterbalancing power. Another point is that "Free Market" actually means the off-shoring of manufacturing where the cheapest labor can be had. Another key point is the notion of "education". While politicians state the problem of jobs as lack of education, Roberts states that millions of educated people are either unemployed or working a low wage service jobs. Microsoft laid off thousands of engineers one week and claimed to have a shortage of engineers shortly thereafter. Enter, immigration. Foreign workers are being brought in to take white collar jobs at one third less pay. Roberts does not doubt the 'Globalization of Poverty' put forward by Michel Chossudovsky; however, Roberts focus is on the effects so-called Lassiez-Faire Capitalism is having on the United States.

[Sam Dunn · Rating 2 out of 5]

Is this guy a shill for Putin? Can't decide

[David Coleman · Rating 5 out of 5]

Heady read,And still relevant(Sadly),a decade plus after its release.

[Louis · Rating 3 out of 5]

Paul Craig Roberts’ The Failure of Laissez Faire Capitalism and Economic Dissolution of the West is critique of economic theory and how it has failed to match-up with reality. Roberts examines Keynesian policies as well as the Ricardian free-trade theory, including the shortcomings of both He also questions whether offshoring functions the way many free-market economists suggests, especially with regards to how successfully displaced workers are able to find new jobs.

Roberts emphasizes the failure of economics to adequately account for external costs, especially when it comes to environmental costs, noting the difficulty of solutions: markets, left to themselves, will not adequately account for such costs; however, regulation poses the real risk of regulatory capture. Finally, Roberts questions the extent to which Americans have really recovered from the 2008 crisis, as well as whether the United States truly faces a “skills gap.”

Although I come from a different political background than that of the author, I found myself in surprising agreement with much of this book. This book is a worthwhile read for anyone who knows, or even intuitively feels, that someone is rotten with economics as it is often practiced—the theory doesn’t match reality—but may not know why or may be afraid to say so out of fear of being accused of not understanding economics by the laissez-faire proponents.

[Ben · Rating 5 out of 5]

This book has some very sound arguments against mainstream economic theory. This has made me rethink a lot if the stuff I studied in university and my own view on free trade and globalization. Current trade theory is based on a world 200 years in the past that is very different than the economic landscape today. This is a must read for anyone who studies economics.

[John Rezac · Rating 3 out of 5]

alarming

[Don · Rating 3 out of 5]

Interesting and well-researched. I just wish there had been a lot more to it.

[Hattan Zahid · Rating 5 out of 5]

An excellent look at the currents US economy, and how modern economics theories fails to maintain the economy!