What Went Wrong With Capitalism

A century of expanding government has distorted financial markets, stoked massive inequality, and soaked America in debt. In "What Went Wrong with Capitalism", Ruchir Sharma argues that the recent trend of government expansion has led to a unique phenomenon: "socialized risk". This concept refers to the practice of government guarantees, welfare for the poor, entitlements for the middle class, and bailouts for the rich. The result is a system where capitalism is increasingly reliant on debt, even in the face of inflation. The shift towards borrowing over taxing has altered the way governments finance themselves, and the consequences are far-reaching. The markets can no longer allocate capital efficiently, and the rise of monopolies and billionaires is often a result of this system. Sharma's explanation offers a fresh perspective on the evolution of capitalism, highlighting the ways in which government intervention has shaped the system. As the world grapples with issues like climate change, manufacturing, and global competition, Sharma's analysis provides valuable insights into the role of government in addressing these challenges. With the United States now on course to become the developed world's biggest deficit spender and biggest debtor, this book is a timely examination of the current state of capitalism.