23 Things They Don’t Tell You About Capitalism by Ha-Joon Chang

Ha-Joon Chang’s book, 23 Things They Don’t Tell You About Capitalism, attempts to unravel the simplistic notions of economics as taught in classrooms. In this book, Chang shares his perspective on economics—that markets are not perfect, despite the principles economists often espouse. He points out some of the fundamental principles of capitalism, such as the tendency for those with money to acquire more, and the subsequent inequality of wealth.

Chang devotes the book to uncovering the 23 things that textbooks and economists don’t often tell you about capitalism and how it works. He begins by debunking the myth that free markets are the most efficient way of allocating resources. Chang acknowledges that free markets can be effective in certain situations, but also points out that in other cases, economic convictions can lead to unexpected results that make markets less efficient. He then examines the issue of globalization, noting that not all countries have benefited equally and that some have in fact been hurt by an influx in international trade.

Another point Chang raises is that governments play an important role in helping to regulate markets. Chang explains that governments can provide an infrastructure, such as laws and regulations, which ensure that competitive markets function smoothly and that everyone has access to basic goods. He also discusses the importance of taxation, claiming that taxes are necessary to fund social welfare programs that help level the playing field, enabling those who have less to be able to participate in capitalism.

Chang highlights how the power of the market can be manipulated by the wealthy, pointing out the importance of regulations and policies aimed at countering the stronghold of large corporations. He examines the power of intellectual property laws and the effects of corporate mergers and acquisitions. Another aspect Chang delves into is the concept of shareholder value and corporate governance, exploring how unaccountable executives and boards of directors can amass wealth for themselves, rather than for the company.

Chang also dives into topics such as financial markets, economics of inequality, and the connections between capitalism and democracy. He claims that capitalism can actually stifle democracy, leading to an unfair balance of power. Likewise, he suggests that too much inequality can be detrimental to a capitalist system, as the wealthy amass more and more while those at the bottom suffer.

Chang’s primary goal is to provide a more nuanced view of capitalism—one that goes beyond the common, simplistic stories touted in economics classrooms. By delving into the details of the capitalist system and uncovering the 23 things that textbooks don’t tell you, Chang helps to create a better understanding of capitalism and its implications. By evaluating the various issues from multiple perspectives, readers are provided with a deeper understanding of the fundamental principles of capitalism and the role governments play in helping to shape and guide it.