The Capitalist Code: It Can Save Your Life and Make You Very Rich

by Ben Stein

"My friend, Ben Stein, has written a short book that tells you everything you need to know about investing (and in words you can understand). Follow Ben’s advice and you will do far better than almost all investors." — Warren Buffett

In his entertaining and informative style that has captivated generations, beloved New York Times bestselling author, actor, and financial expert Ben Stein sets the record straight about capitalism in the United States—it is not the "rigged system" young people are led to believe. As he reveals in The Capitalist Code, "Life can be faced by moaning and complaining or it can be faced by study, work, optimism, and faith in the free capitalist system. Guess which side gets the happier life?"

Most Americans have not inherited wealth or a successful business that could set them up for life. That means most Americans are destined for financial worry and concern for the rest of their lives. Right? Wrong! Ben Stein explains how the wonderful system of stock market capitalism can allow any American to build financial security. In this succinct guide, you will  



Why it really is better to have money—and how to get thereHow to save first, and then spend automaticallyWhy investing in great companies is easier than you think

That's what this book is all how to harness the incredible power of the U.S. economy for enjoyment and security by being owners of profitable businesses-by consistent, conservative investment starting as young as possible in a diversified portfolio of stocks. Anyone can be a capitalist—and should be. All it takes is a little bit of knowledge and an even smaller amount of action. All it takes is The Capitalist Code.

Genres: Finance, Business, Nonfiction, Money, Economics, Audiobook

172 pages, Kindle Edition

First published April 4, 2017

About the author

Benjamin Stein is a multifaceted American figure known for his work as a writer, lawyer, actor, comedian, and commentator on politics and economics. He began his public life as a speechwriter for Presidents Richard Nixon and Gerald Ford, later gaining widespread recognition in the entertainment world for his deadpan comedic style. Stein became a pop culture icon through his role as the monotone economics teacher in Ferris Bueller’s Day Off and as the host of Win Ben Stein’s Money, a game show that earned multiple Emmy Awards. He also played Dr. Arthur Neuman in The Mask and its sequel. A Yale Law School valedictorian, Stein worked as a lawyer for the Federal Trade Commission and taught law and economics at Pepperdine University.
A prolific columnist, Stein has contributed to The American Spectator, Newsmax, The New York Times, and The Wall Street Journal, among others. His books, often co-authored with Phil DeMuth, address financial planning and economic commentary. In 2008, he wrote and starred in Expelled: No Intelligence Allowed, a controversial documentary criticized for promoting intelligent design.
Politically conservative, Stein has defended Nixon's legacy, expressed strong views on U.S. foreign policy, and advocated higher taxes on the wealthy to support military initiatives and reduce national debt. During the 2008 financial crisis, he came under scrutiny for downplaying early warning signs and misjudging the scale of the economic collapse.
Stein has also had an extensive voice acting and television career, appearing in series such as The Wonder Years, Seinfeld, and Family Guy, and voicing characters in The Fairly OddParents, Rugrats, and Animaniacs. His personal life includes a long-standing marriage to entertainment lawyer Alexandra Denman and homes in California, Idaho, and Washington, D.C. Though often polarizing in his opinions, Stein remains a recognizable figure across political, academic, and entertainment domains.

Reviews

[Hannah · Rating 1 out of 5]

Sometimes I wonder if I'm reading the same book everyone else is...this book is literally a boomer (or the generation before, I'm not sure; he's 73) telling millennials to stop whining, get a job, save money, and invest, and you're guaranteed to get rich. Like it's that easy to get a job that pays you enough to have a decent amount of savings. He even thinks everyone can get enough in grants and scholarships to not need to take out student loans - like we all did that for kicks and giggles? He's completely out of touch with what life in the real world is like. The entire rest of the book is a repetition of 'invest in stocks and you'll get rich,' 'invest in stocks and you'll get rich,' 'invest in stocks and you'll get rich' like it's guaranteed to work - with barely a word about the risks of investing. Investing is good, and people should do it, but you have to do it wisely (which this book gives no guidance for, except for recommending picking individual stocks to invest in, which other personal-finance-for-young-adults books say not to do; he also thinks past performance is indicative of future performance), and not all in the same way. He does also recommend investing in an index fund, which is about the only good advice in the book. There are FAR better personal finance books for millennials out there that are more in touch with real life; skip this one.

[Doug Phillips · Rating 4 out of 5]

I have been a fan of Mr. Stein as a current events commentator and editorial author for years. It was no surprise to me that I enjoyed this informative book as well.

Written with an intended audience of readers who are younger than me, the book does a good job of covering the basics of managing one's own finances. Using his "pre-Dad" advice, the author introduces some fundamental investing and money-management concepts in a casual, conversational tone. Never does he go dry in tone or too preachy in presentation.

This would make an excellent introductory book for a twenty-something youth who is just starting out on their independent road of life and wants to make sure they actually have some "golden years" of retirement.

[Bernard O'Leary · Rating 3 out of 5]

This short book could be even shorter: work hard, spend less than you earn, save the surplus, use it to invest in an index-linked fund. That’s basically it, if you do that, you will eventually become rich, or at least well-off.

There’s an underlying point that’s hinted at occasionally, which is that the problem of capitalism is that most people don’t understand it. This is true. People are encouraged to work hard and save, but nobody tells us about investing and it’s generally seen as something that’s only for people who are already rich.

Sure, we should all guess that the secret to capitalism is capital – the clue is in the name, after all. But most people are alienated from the process. In that sense, this is a very positive and empowering book. It’s also fun if you imagine it being read aloud in Ben Stein’s voice.

Don’t expect any information other than that included here, however. Stick your spare pennies in index-linked funds, that’s all there is to it.

[Doug Phillips · Rating 4 out of 5]

I have been a fan of Mr. Stein as a current events commentator and editorial author for years. It was no surprise to me that I enjoyed this informative book as well.

Written with an intended audience of readers who are younger than me, the book does a good job of covering the basics of managing one's own finances. Using his "pre-Dad" advice, the author introduces some fundamental investing and money-management concepts in a casual, conversational tone. Never does he go dry in tone or too preachy in presentation.

This would make an excellent introductory book for a twenty-something youth who is just starting out on their independent road of life and wants to make sure they actually have some "golden years" of retirement.

[Rachel · Rating 3 out of 5]

It all boils down to one thing:

Invest in the stock market. It's a way to own a tiny piece of a big business and minimize your risk.
More specifically: invest in an index fund of the S&P 500. You'll own a tiny piece of a bunch of businesses and you'll have more money when it's time to retire.

I liked it; I'm checking it out. I'm advising my kids.

It's easy to think of big business as morally bankrupt, but it isn't, really. Business leadership can make poor/unethical decisions, but being big doesn't make them inherently wicked, and being a small business doesn't make it inherently virtuous.

And since I'd like to retire someday, and not worry about greeting at Wal-Mart, some of these concepts are worth a twirl.

[Jay French · Rating 3 out of 5]

I have an Uncle that was an investor, along with his full time job as a draftsman. He owned stocks, and he was a partner in a fast food place in Fort Leonard Wood. He’d occasionally give my Dad old copies of Value Line, and I read those voraciously when I was in high school. I understood, in part from listening to my Uncle and my Father talk, that investing was the way to go. But my Uncle liked to invest in particular stocks, hoping to beat the market. Fast forward to today’s investment landscape shared on social platform Reddit, with the FIRE folks, interested in gaining financial independence. These folks have done the research, and seen the value of investing not in individual shares but in broad swaths of the market in low cost ETFs or mutual funds, diversifying away the risks of individual stocks and putting faith in the power of the market and compounded growth. If you mix my Uncle with the philosophy of FIRE, you get Ben Stein’s book “The Capitalist Code”. Lots of basic advice, lots of personal anecdotes. A fine introduction for a young person beginning investing. For those already dipped in this philosophy, this is just a nicely written, fun (or is the word "droll"?) reminder. And you get to relive a little of “Ferris Buehler’s Day Off” in the beginning.

[Matt · Rating 5 out of 5]

A pretty simple and straightforward book. Here’s the thumbnail version to save you all the cost of the book:

* capitalism is good.

* It’s the way for the little guy to own a (small) piece of a large company and earn dividends, make money and ensure your retirement is a good one.

* save now (no matter what your age- but preferably a young you) to take care of the older version of yourself when you retire.

I think I will send this to my son overseas in a care package. He's 25 and will benefit from some easy to understand financial advice.

[LAMONT D · Rating 3 out of 5]

An easy read and who better to take financial advice from than the one and only Ben Stein. His biting humor and unmistakably concrete way to make a very complicated subject easy to comprehend and understand. Just invest in stocks, believe in our capitalistic society and save as much as you can as early as possible. To all those that try to rewrite history and tear apart our capitalism that we enjoy in this country, consider again how wrong you are.

[Tim Blackburn · Rating 4 out of 5]

Very good economic primer. I've loved Ben Stein since his performance as the teacher in "Ferris Bueller's Day Off" explaining the Taft Hartley Act to a class of bored high school students. This book, IMO, should be read by every high school senior - it definitely points out the fallacy and hypocrisy of the strident voices in American politics who espouse the virtues of socialism. Excellent fast read.

[Mandy Porter · Rating 3 out of 5]

This book was okay. Not a lot of information that I did not already know, but there was some useful nuggets. Clearly written by someone with strong conservative views as a few of the statements made were made from that of privilege and slightly offensive.

[Joe · Rating 5 out of 5]

Great book. I love the way Ben Stein writes. This is a great introduction to the stock market. Very sound advise. I highly recommend this book

[Don Adams · Rating 4 out of 5]

Ben boils it down makes it simple.

I like this book Ben made it short simple didn't waste time he just got right to it. Yet he gives places to go if you wish to do research, there it is.
Thanks Ben i wish I read this much earlier in my life.

[Joanne · Rating 3 out of 5]

No new information here. Start saving early and life below your means.

[Christopher Lawson · Rating 4 out of 5]

In THE CAPITALIST CODE, Ben Stein gives the reader some valuable money lessons. These lessons are delivered in a funny, easy fashion, and liberally sprinkled with personal anecdotes and observations.

The key point is this: Free market capitalism is an incredible machine for making wealth. Corporations “rain money” year after year. If you don’t participate, you are making a huge blunder. It doesn’t take a genius, but it does take a plan—a “little bit of knowledge and an even smaller amount of action.”

The author cites some alarming statistics, noting how poorly prepared many folks are: For example, 80% of millennials have no plan whatsoever for retirement savings. They are saving NOTHING, which the author notes is “not a formula for sleeping well at night.” Similarly, the average person says they need about $50,000 per year for retirement; but only has savings to achieve 20% of that number.

A few points along the way:

+ Education: “There is a clear, unequivocal , if generalized, connection between the amount of education that a man or woman achieves and the amount he or she earns.”

+ Spending: “You must arrange your life from the very get-go so that you are spending less than you earn.”

+ Picking Stocks: You don’t need to “play the market” and try to pick stocks. Just buying and holding index funds is a simple, effective method that beats money managers most of the time.

The author provides a “bullet point” summary in the very last chapter of the book:

1. Free market capitalism is a fantastic wealth-producing system.

2. This system allows individuals to amass wealth.

3. Free market capitalism is not an evil, blood-draining system. Instead, “There is no freer, more diverse, and more equal opportunity employer than capitalism. . . .If you can produce a large amount of excess over your costs, you get well paid. And if you produce very much more than you cost, you get rich.”

4. You must acquire wealth: “A highly disproportionate amount of the good things in life accrue to those who have financial capital. The easiest way is to own index funds.

5. Hold onto these funds as long as possible.

6. Take advantage of huge tax subsidies for deferring investment gains


So all in all, I found THE CAPITALIST CODE to be a fun, practical read. I was already familiar with his points, so there wasn’t much new for me, but I still enjoyed his perspective on the subject. And of course, his witty observations.

I thought this one line summed up the book succinctly: “Life can be faced by moaning and complaining or it can be faced by study, work, optimism, and faith in the free capitalist system.”

Advance Review Copy courtesy of the publisher.

See also:

Bassocantor.com/blog/capitalist-code

[Jeff · Rating 4 out of 5]

3.5. Short book (2.5hrs on Audible). Argues that the stock market is the best way for everyone to make money in the long-term. Worth listening to.

[Barry · Rating 3 out of 5]

Good stuff, but too spare

[Steve · Rating 4 out of 5]

I did not learn anything from this, but when I viewed it from my "20 year old self" lens, it was really good. A good primer for someone just starting their financial life. Basically, stock ownership is lucrative and does not require a bunch of hand-on work. The caveat is that you need to hold for a long time - if you are able.

[Yukari Watanabe · Rating 2 out of 5]

I received a review copy from the publisher ( I didn't request it).

It's a very quick read. It could've been an interesting book to a college kids 20 years ago, but it felt dated. And, overly simplified.

[Aaron Ashworth · Rating 3 out of 5]

If you know nothing about investing in stocks this is a very simplistic approach that consumes itself mostly on underlining the positive aspects of stock investing as opposed to other vehicles. In short, Stein takes about how capitalist success is reflected in the growth of the stock market, and by anchoring your money to corporations that are going places you will grow your net worth as the valuation of your holdings go up.

[Adam · Rating 4 out of 5]

It's raining corporate profits! Get buckets aka stocks index funds! The wisdom in this book is gold.

Nuggets of Truth:

Trees don't grow to the sky
That's a bit more complex but not overly so
My preferred holding period is forever
A hold is as good as a buy
Get over it or get run over by it
Fortune sides with him who dares
Do you feel compelled to speak in jargon to inflate your status

[John Drexler · Rating 4 out of 5]

Reasonable starting point

Fairly easy, very quick read. Basic information, to be sure, as others have stated, though this is exactly what I needed. I'm not a business/financial person, though I still take great interest in the burden of preparing my wife and I for retirement.

[Ammon · Rating 3 out of 5]

Nothing revolutionary here, put your money in Indexed Mutual funds and don’t touch it.

Good primer for teens or millennials.

[Rick · Rating 3 out of 5]

Disappointed the audiobook wasn't read by Ben Stein. Practical and basic information about saving and investing in index funds. Written more for those just starting out with investing.

[John · Rating 3 out of 5]

maaaybe 2.5
I like his take on $.
He is a sage, of sorts.
This one is short and sweet.

[Matthew · Rating 2 out of 5]

My dad got this book, told me it was a quick read and asked me to read it. I would have never read this book for a number of reasons, the first being I already knew the gist of what Stein would say, however out of fairness and openness to my father's opinion, I gave it a read.

It's really difficult to listen to an old guy who, though he has a degree in economics, is basically saying the fact that millennials are questioning how capitalism works for the citizens as a whole and how we can improve it, or as he puts it, whining about Capitalism being the enemy, we shouldn't be expecting life to happen for us... Granted this was written in 2016 and 2022 is a much different time, I just can't get behind someone who opens their books saying "economists don't know what they're talking about...and they can't predict the future, but I'm the economist who can tell you how to get rich. Trust me!" Why, bro? you already told me I was a lazy piece of shit.

It was already said in another review. Bottom line: invest in the stock market... Bet Stein had no fucking idea that four years after writing this book, all his billionaire buddies would be running back with their tails tucked under their legs because some stupid kids bought some Gamestop stock.

[Philip Harris · Rating 2 out of 5]

This book doesn’t really have much to say and will cause constant eye rolls with its romanticizing of Capitalism for many of the millennials this book is apparently aimed at. And I say that as a huge fan of capitalism and as a millennial. Being told to invest is smart, but this book merely recommends other books to read to learn more about it. I will say however, there is one great piece of advice that I did really love and that struck a nerve: when you are old and your family is gone or unable to help, there is only one person in the world that can really help you, and that is the younger you that has time to save and invest. I love that point and it is something I firmly agree with and need to constantly remind myself of. So In summary, this is not a horrible book, there’s just not much too it besides an old rich guy that was born on third base talking about how he loves capitalism.

[William · Rating 5 out of 5]

This is an absolutely outstanding book: read it. It promotes the idea that any person can become financially independent if he buys into capitalism. Anyone can do this. It is one way any American can get ahead and prepare for retirement, no matter his profession. Instead of knocking it join up: remember the folks in “The Jerk” who bought no load mutual funds? They had plenty of money. That movie is about the only place in pop culture where capitalism is praised and shown to be available to all. Ben Stein touts the meritocracy of the stock market. His message is not politically correct for those who would place government sanctions as a cure for alleged ills. Tough: it works.

[SCOTT CADWALADER · Rating 5 out of 5]

Like sage, calming advice from a wealthy uncle

For those who have always believed that investing was only for the very rich, for the privileged or for those who are smarter or more enlightened than you will ever be, rejoice. Uncle Ben Stein simplifies it all and shares the basic truths of how and why to save and to invest for your life long financial security and well being. How I wish I had embraced these truths when I was in my teens or my 20's. That is why I am giving this book to my children, and I encourage everyone to do the same.

[Connor Joyce · Rating 4 out of 5]

Solid advice and explanation of why capitalism is a good thing

Good book with basic but proven advice on how to succeed in a capitalist system.

I had trouble figuring out what the author meant by "pre-dad." It was not explained well and was referenced throughout the whole book.

If you have read a lot of personal finance books a lot of this will be repeat information. But its a good read anyway.

[Shir L · Rating 3 out of 5]

Nothing revolutionary if you are someone who thinks about money attentively. The basic points are:
1. Contrary to what you're told, capitalism and corporations are your friends - they will make you rich and safe and free
2. Just keep saving, and buy the market and let your money grow as much as you can
3. Take advantage of all the free money out there

If you are someone who hasn't thought much about compounding interest etc, this book might be helpful.