Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity
Political Science

Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity

  • William J. Baumol, Robert E. Litan, and Carl J. Schramm


"In our lifetimes, humans passed a remarkable milestone. Most people now live in a capitalist economy. This is not, however, the end of history. As the authors of this path breaking book show, there are several distinctly different types of capitalism and it takes a mixture of two of these types to get all the economic, social, and political benefits that capitalism affords."—Paul M. Romer, STANCO 25 Professor of Economics in the Graduate School of Business at Stanford University




Good Capitalism, Bad Capitalism tells us that capitalism comes in different flavors, and some of those flavors taste very much better than others. One of these forms of capitalism, entrepreneurial capitalism, is a special treat. It leads to growth and prosperity. The other forms are to be avoided; they lead to stagnation. This new view of the wealth of nations offers a guide to economic policy in all countries, from richest to poorest. This is a daring book with big, bold, important ideas.”—George Akerlof, University of California, Berkeley, Nobel Laureate in Economics, 2001 



"An important new book. . . . Good Capitalism, Bad Capitalism presents a smart and accessible overview of the relevant academic literature on growth and innovation. And the authors build a helpful conceptual framework for how to think about 'capitalism.' . . . As a guidebook for economic reform, the book helps policymakers understand how to characterize their economies and thus what their relative strengths and weaknesses are. And it helps them begin mapping realistic incremental reforms that might move undeveloped or stagnant economies in the right direction. . . . An invaluable guide."—Nick Schulz, American.com

"[A] trailblazing book. . . . Good Capitalism, Bad Capitalism offers invaluable insights for anyone interested in global economic growth and in America's economic future."—eclipse developer's journal

"Good Capitalism, Bad Capitalism helpfully moves the debate on from competing national models to the underlying structures that shape the relative effectiveness of different sorts of capitalism."—The Economist

"Well worth a read by both academics and policy-makers. It is an interesting and promising departure from the standard debates."—Mark Zachary Taylor, Review of Policy Research

“…this is a book well worth reading because it provides insights into capitalist systems which exist now and gives cogent arguments for choosing the good from the bad.” - R. John Sandeman, The International Journal of Environmental Studies

"The issues here are complex, and the book is chock-full of wise suggestions on how to reform the patent system, bankruptcy laws, and antitrust policies to protect 'good capitalism.'" —Joel Mokyr, Technology and Culture