Book Review: 23 Things They Don't Tell You About Capitalism

23 Things They Don't Tell You About Capitalism by Ha-Joon Chang of Cambridge University is a devastatingly insightful critique of free-market economics. Methodical, jargon-free and highly accessible, 23 Things takes apart the free-market paradigm, piece by piece. If you are a supporter of free-market economics, read this book, then get back to me. I freely admit that I am pre-disposed to many of Chang's arguments, but it would sow the seed of doubt in the mind of even the most hardened of right wing economists.

Most of the 23 Things are not about behavioural economics, but some of them touch on it. One of Chnag's conclusions is that:

"When we understand that the modern economy is populated by people with limited rationality and complex motives, who are organised in a complex way, combining markets, (public and private) bureaucracies and networks, we begin to see that our economy cannot be run according to free-market economics. When we more closely observe the more successful firms, governments and countries, we see thay are the ones that have this nuanced view of capitalism, not the simplistic free-market view." 

(p.250)

He proposes that:

"We should build our new economic system on the recognition that human rationality is severely limited."

and goes on:

"It is suggested we can prevent another major financial crisis by enhancing transparency. This is wrong. The fundamental problem is not our lack of information but our limited ability to process it." (p.254)

23 Things is notable for the abundance of suggestions for how to improve our lot. Chang never points out a flaw with the current system without suggesting an alternative. This makes for a powerful read. And a potentially uncomfortable one for free-market disciples. The following quote sums up his approach:

"Economics does not need to be useless or harmful. We just have to learn the right kinds of economics." 

(p.251)

If you are interested in how we shape our economy for a better future, then I cannot recommend 23 Things enough. 

I leave you with the thought that:

 "Market outcomes are not 'natural' phenomena. They can be changed." 

(p.257)

Genre: Economics
Accessibility: 9/10
Accuracy: 9/10
Readability: 7/10
Usefulness: 10/10
Verdict: Very, very interesting!