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

334 Pages Posted: 16 May 2007  

William J. Baumol

New York University - Stern School of Business, Berkley Center for Entrepreneurial Studies; Leonard N. Stern School of Business - Department of Economics

Robert E. Litan

Council on Foreign Relations (CFR) - Council on Foreign Relations- Washington D.C.

Carl J Schramm

Syracuse University

Date Written: 2007

Abstract

Imagine this: a mere century ago, the purchasing power of an average American was one-tenth of what it is today. But what will it take to sustain that growth through the next century? And what can be said about economic growth to aspiring nations seeking higher standards of living for their citizens? In Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity, William J. Baumol, Robert E. Litan, and Carl J. Schramm contend that the answers to these questions lie within capitalist economies, though many observers make the mistake of believing that capitalism is of a single kind. Writing in an accessible style, the authors dispel that myth, documenting four different varieties of capitalism, some Good and some Bad for growth. The authors identify the conditions that characterize Good Capitalism the right blend of entrepreneurial and established firms, which can vary among countries as well as the features of Bad Capitalism. They examine how countries catching up to the United States can move faster toward the economic frontier, while laying out the need for the United States itself to stick to and reinforce the recipe for growth that has enabled it to be the leading economic force in the world. This pathbreaking book is a must read for anyone who cares about global growth and how to ensure America's economic future.

Keywords: capitalism, entrepreneur, innovation

JEL Classification: B1, B2, F1, F2, F4, J6, K2, L00, M13

Suggested Citation

Baumol, William J. and Litan, Robert E. and Schramm, Carl J, Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity (2007). Available at SSRN: https://ssrn.com/abstract=985843 or http://dx.doi.org/10.2139/ssrn.985843

William J. Baumol

New York University - Stern School of Business, Berkley Center for Entrepreneurial Studies ( email )

New York, NY
United States
212-998-8943 (Phone)
212-995-3932 (Fax)

Leonard N. Stern School of Business - Department of Economics

269 Mercer Street
New York, NY 10003
United States

Robert E. Litan (Contact Author)

Council on Foreign Relations (CFR) - Council on Foreign Relations- Washington D.C. ( email )

1777 F Street, NW
Washington, DC 20006
United States

Carl J Schramm

Syracuse University ( email )

900 S. Crouse Avenue
Syracuse, NY 13244-2130
United States

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