Economics has now become an invisible tool that manipulates the world. In order to find a way to control it, people have come up with many books on economic algorithms. By creating them, researchers aim at establishing the way, in which the world works. Such books are now divided into the synchronic and diachronic ones, where the latter ones examine the economics in the context of history, and the first focus on modern development.
When people study the economy as a major, their primary goal is to pay enough attention to science emergence, as world history often tends to repeat itself. Thus, in the course of this review, the attention will be focused on the diachronic book Capitalism in America: The History, written by Alan Greenspan and Adrian Wooldridge.
To begin with, it is necessary to provide a brief inquiry into the biography of the book’s authors. Alan Greenspan is a former Chair of Federal Reserve of the United States, who had the chance to become the economic counsellor of the several US presidents. Adrian Wooldridge, in his turn, is a leading editor of the US’ The Economist. Hence, although their competence on the subject may be controversial, it is definitely indisputable. The book itself was published in 2018, which makes it relevant in the context of today’s world despite the work’s historical profile.
One can understand from the title that the authors have to focus on the development of the capitalistic relations within the country throughout its history. Although it is true, the notion of capitalism in their interpretation is rather subjective, which makes the book even more interesting for the potential reader. Greenspan and Wooldridge aim at describing the patterns of American economic development through the concepts of Schumpeterian Creative Destruction and Great Men Theory.
The first theory is based on the findings of Austrian scholar Joseph Schumpeter, and it claims that every economic stage emerges because of the destruction of the previous structure (Evangelista). Another theory states that the world’s economy is developed as a result of the actions of several influential people who are called the Great Men. Hence, the major value of the book lies in the fact that it requires a critical analysis of the information.
According to the information provided on the authors’ biography, they are the ones who should know the American economy better than any other scholar should. However, the statements in the book are rather controversial and require some further research on the topic instead of being taken as a priori. Unlike non-fiction books on the economy, conquering the market today, Capitalism in America does not provide the reader with already processed information. Instead, it gives the recipient the opportunity to analyze data in order to form a substantial opinion.
In my opinion, besides the invaluable impact on the history of economics, the book also contains some assets and insights on further US economic development. The last two chapters of the book are aimed at describing America’s biggest challenges and opportunities in terms of the economy. The challenges include draining regulations, demanding labor markets, reduced mobility, the dissonance between the cost and the quality of education, and productivity suppression (Greenspan and Wooldridge).
Another important insight concerns the driving force of the future American economy, which is focused primarily on entrepreneurs. Such assumption perfectly matches with the main idea of Schumpeterian Creative Destruction, as the entrepreneurs will be able to commence the new age of the country’s economic development.
When taking the book for the first time, it seems to be describing the patterns of the US economic structures and their modifications throughout the country’s existence directly. However, there is little on the subject of economy proper. In my opinion, the authors try to convey the idea that the economy as a science cannot exist on its own. Hence, Greenspan and Wooldridge dwell upon the US political, social, and business aspects in order to expose how they have shaped the country’s economy. Eventually, their interrelation explains major America’s financial crises and hardships. Thus, the book is crucial for both economists and entrepreneurs, as it will help them realize how even minor events happening in the country influence its economic growth.
Taking everything into consideration, it may be concluded that Greenspan and Wooldridge’s Capitalism in America: A history is a true asset not only for people related to economics. Being easy to perceive, the book is nothing like today’s average “self-help” book, which is aimed at helping people become top economists in a matter of weeks. While at first, it may seem that the book is manifest for capitalism, this notion is rather subjectified by the authors.
Creating the impression of modern American economy founders, Greenspan and Wooldridge has a significant advantage in the field. However, when reading the book, it is important to remember that any information obtained in the 21st century has to be processed several times, along with being reconfirmed in other sources. Thus, this book is a must for people who want to learn how to handle the information critically in order to make a change in the future.
Works Cited
Evangelista, Rinaldo. “Technology and Economic Development: The Schumpeterian Legacy.” Review of Radical Political Economics, vol. 50, no. 1, 2017, pp. 136–153.
Greenspan, Alan and Adrian Wooldridge. Capitalism in America: A History. Penguin, 2018.