Product Description

Participating in the economy is a part of everyday life, yet much of what is commonly accepted as economic fact is wrong. Keynesian schoolteachers and the liberal media have filled the world with politically correct errors that myth-busting professor Robert Murphy sets straight. Murphy explains hot topics like outsourcing (why it's good for Americans) and zoning restrictions (why they're not). Just like the other books in the P.I.G. series, The Politically Incorrect GuideT to Capitalism pulls no punches.

Product Details

• Amazon Sales Rank: #61825 in Books
• Published on: 2007-04-09
• Original language: English
• Number of items: 1
• Binding: Paperback
• 224 pages

From AudioFile
Economist Robert Murphy is an unrepentant "capitalist pig"--his words--and, true to his book's title, he delights in taking positions that make Marie Antoinette look sympathetic to the plight of the underprivileged. Phrases like "the liberal media" are a dead giveaway where Murphy's politics lie, and, considering the economic times we live in, his whole "let them eat cake" posture is at times grating. With lofty restraint reader Perry Richards's mellifluous voice suits Murphy's smugness. A disciple of economic guru Martin Friedman, Murphy has never met a millionaire he didn't like and is happy to tell you so, using Richards as his silver-tongued messenger. J.S.H. © AudioFile 2008, Portland, Maine-- Copyright © AudioFile, Portland, Maine

From the Inside Flap
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 like:

* 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 taxes: 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 suits: 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 Bank: why they don't help poor countries

* Plus: 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.

About the Author
Robert P. Murphy earned his Ph.D. in economics from New York University . A former professor at Hillsdale College , he is now an adjunct scholar with the Ludwig von Mises Institute and an analyst at Laffer Associates. He has worked as both an economics scholar and lecturer, as an investment/business analyst, and as a writer of popular journalism on economic topics. He lives with his wife and son in Nashville , Tennessee .

Customer Reviews

A mixed bag
The book has many pros and cons. It's a quick easy read full of interesting insights into how money is used by private and government institutions and the roles played by individuals (consumers, workers, shareholders) in the economy (domestic and international - via free trade), as well as the potential positive effects of a free market on social issues like poverty, slavery, gender and race discrimination.

On the other hand it suffers by being a purist economic doctrine: it assumes humans are rational (overly optimistic), it assumes government is always bad, it assumes the economic "laws" it proclaims are true when there are opposing economic theories to explain the same outcome, it doesn't take into account overall complexity of economies, it ignores human social evolution (centralized governments inevitably arise as human populations and population densities increase). Finally, it pigeon-holes those with dissenting views as "Marxists", "Socialists", and "Leftists", who "hate capitalism" to prove its point while using strawman arguments. The fact is, economic theory of the kind argued for in the book is not an all-or-nothing proposition. It can work well in most instances, but it's always going to have drawbacks and there will always be room for legitimate intervention since individuals are ultimately tied to central governments (which is why books that explain systems in a way that would be "best" without any government involvement are shouting in the wind).
In other words, it provides a useful framework (like the Constitution) but the inner-workings are much more complicated and don't fit neatly into it (thus, in addition to the Constitution we have enormous legal books filled with laws of the land).

I found it interesting that there isn't a chapter exclusive to the topic of income taxes, even though it's clear the author believes said taxes must certainly be bad since it's a government intrusion. I presume he thinks it's best if we have volunteer fire departments and police force. We should also fix the roads and bridges ourselves or privatize everything like it was done and failed miserably in places like Argentina.

I found myself disagreeing with most of the analysis in the first half of the book. It was superficial and also demonstrated the authors lack of experience with his subject. For example, the when he argues that rent control causes housing shortages because landlords decide not to rent out apartments is bogus. Rent control is indeed negative for landlords but it doesn't cause housing shortages. When there is rent control, landlords rent out everything they can to make as much (or little) as possible since it's always better to have more money coming in. Having owned buildings myself, it's clear that the author is using Libertarian "education" rather than real world experience to build his cases.

Likewise when he talks about CEOs getting huge paychecks even if they drive a company into the ground, he says it's ok because nobody would take on that job if it didn't provide big money. Fact is, plenty of people could and would do the job for far less than those salaries. He says shareholders agree to it so it's ok, but later in the book he admits that shareholders rarely wield power - instead, it's management that does. He goes on to say that workers get a paycheck even if a company isn't profitable so why complain about CEOs getting paid even if the company isn't profitable. This is absolutely absurd - workers get a pink slip, not a million dollar farewell package when the company is in the red. The book is rife with borderline retarded assessements such as these.

The second half of the book is much better but this is partially because it deals with topics that are much harder to evaluate. But even here he often faulters into nonsense. He argues that outsourcing is good because cheap labor cuts costs and this savings is transmitted to consumers. That's not the case. When a manufacturer goes overseas, you don't start paying less for items. They remain the same price, but the company's profits increase because their expenses have decreased. Many times you often also get an inferior or dangerous product as a result, and inefficient customer service. But it's the consumer that feels this, not the manufacturers.

There is something to be said for allowing monopolies because they do tend to bring prices down. Still, there is a balance - fierce competition also brings down prices as well as spurns innovation for better products. Additionally, monopolies have a knack for crushing competition even if that competition has a superior product so that potential buyers don't even get the opportunity to utilize it.

A wonderful beginner's guide
This was one of the first books I read when I became interested in money and economics. The book is well thought out and explains the benefits of the free market and capitalism. Far too many people feel the people who earn lots of money do not deserve it, but that is why America was so prosperous in the past. If you want socialism and 'feel' that you are entitled to government support, then most likely you will not like this book.

Excellent starting point
Dr. Murphy does an excellent job at outlining the basic tenents of a capitalist society, and throughouly debunks nearly every myth and fabrication anyone has ever heard in regards to the concept. On top of this, he does an excellent job making economics entertaining as well as easy to understand for those who may not have a full understanding of the subject. Definitely a good starting point for anyone who has ever questioned or would like to begin to respond to questions about economics and its practice in a capitalist society.