The Politically Incorrect Guide to Capitalism

I heard about this book on "Pro Business With Dr. Mike Beitler," a free-market, libertarian internet-radio talk show. Dr. Murphy and Dr. Beitler systematically destroyed the myths about capitalism one after another. It was the most intelligent discussion I've heard in a long time. How refeshing after the socialist vs. socialist debates we saw with Obama and McCain. I would recommend this book along with Beitler's "Rational Individualism" Rational Individualism: A Moral Argument for Limited Government & Capitalism. You will find both books direct and insightful. Paul Bauer

Is there anywhere in the world a more maligned, distorted, scapegoated, vilified, or simply misunderstood concept than that of the free market? It has done so much (certainly more than any and all governments) to feed the hungry, clothe the needy, promote the arts, sciences, and industry, prevent conflict, and build community. And yet, it is constantly under attack, blamed for the very ills it's best equipped to solve, and even many of its "defenders" think it needs to be hemmed in with a thick fence of regulation and taxation. Part of the problem, of course, is that the free market is so complex. As Erik von Kuehnelt-Leddihn noted in "Leftism Revisited," a clear, simple -- and deadly -- idea like Marxism "can be explained to the merest child in a matter of minutes. (Conversely, to explain the workings of the free market economy to an adult would take weeks of hard work.)" I'm sure Bob Murphy put in more than "weeks of hard work" to prepare this guide. As an "Austrian" economist, he is perfectly suited to write a book like this for a general audience. Apart from being right on the theory, Austrians are far less likely than members of other schools to get the reader lost in a maze of graphs, charts, and the minutia of comparative statistics. Instead, this is a powerful, lucid, and very readable book that, while concentrating on the fundamentals, will give any reader -- up to and including "dyed in the wool conservative" Republicans -- much to think about. But beware of exploding myths! So much of the "Politically Incorrect Guide" series is devoted to an energetic goring of sacred cows, and "The P.I.G. to Capitalism" is no exception. A huge amount of what we take as revealed truth about how an economy functions, and the role of the government in "keeping the economy going," is revealed as so much propaganda. Certainly, it will take more than 200 pages to really convince people that "trade deficits" are meaningless, that outsourcing is good for workers, that the Depression wasn't a "market failure," among the many counterintuitive arguments the author presents here. But few books, in my experience, have done as good a job at laying out the essential arguments and pointing the way to further study. It's a shame this book (and indeed this entire series) should be needed as badly as it is. But for the open-minded and thoughtful reader, or the defender of capitalism looking to shore up her argumentation, Bob Murphy's "Guide" is an entertaining read, a useful evangelical tool, and a reference worth keeping around.

I debated with myself whether to give 4 or 5 stars to this book. Ultimately, I decided on 5 stars - as the content is tremendous - and I decided it was unreasonable to expect this book to be everything to everyone. The book is a wealth of information and covers a wide range of subjects - with a good portion of those filling the "politically incorrect" category. Mr. Murphy - and I have read several of his articles outside this book - has the gift of providing some of the clearest and pointed critiques of `politically correct' thinking concerning capitalism. In reading the book, I didn't find all of his arguments equally convincing - but when they are good - they are INCREDIBLY good. Entertaining too - in talking about a particular Amtrak line, he offers "Your tax dollars would have been saved if the line had been scrapped and Amtrak's customers had been given plane tickets instead." Point and match to Mr. Murphy. The book does not dwell needlessly on each issue - but gets right to the point - and there are several in each chapter. Hence, my reference to a shotgun blast in the title. The points come and go quickly, and if you don't have some background in some of the items, it is possible to simply read the conclusion without fully appreciating the argument. This is not a quibble with the text - which is extremely readable. If you are in possession of matrix-like "bullet speed" capabilities, be sure to use them as needed to slow down and appreciate some of the elegantly crafted explanations in the book (I've read many books three times the size with nowhere near the amount of information contained here.) Would I recommend this book to an absolute economic newcomer? No. If you have never heard of the phrase "GDP" then I don't think this is the place to start. This was my 4/5 star debate. I finally figured out I was getting hung up on the cartoon cover (sad - isn't it?) But, if you have watched the business channel or read the business section, you will easily understand and enjoy this book. And the upper limit? I'm the wrong one to ask. But after reading the book, I'd pay money to see Mr. Murphy debate just about anyone.

This is a magnificent introduction to free market economics, the last best hope for civilization. This is a modernization, and in many ways an improvement over, Henry Hazlitt's justly famous, but now somewhat out dated book, Economics in One Lesson (1946). Ditto for my own far less famous and less worthy book Defending the Undefendable (1976). Speaking as an old coot of the free enterprise movement, I am delighted that this baton is now being passed on to very able young people such as Bob Murphy. Walter Block

My husband is an economist, and well, I'm not. I like to know what he's up to though (and understand his conversation), and this book is incredibly entertaining and informative. He enjoyed reading it as well, and he has a PhD in the subject, so I think this is a must-read for anyone with a hint of interest in markets.