Good Capitalism, Bad Capitalism, and the Economics of Growth and Prosperity William J. Baumol, Robert E. Litan, Carl J. Schramm

Publication date:
27 Oct 2009
Yale University Press
336 pages: 235 x 156mm
7 b-w illus.
Sales territories:
World excluding India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan and Myanmar


Three prominent economists focus new attention on the essential role of entrepreneurship in capitalism

In this important book, three prominent economists propose that there are different varieties of capitalism in the world today--some good for economic growth, others decidedly bad. Writing in an accessible style, William J. Baumol, Robert E. Litan, and Carl J. Schramm documentfour different varieties of capitalism and 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.

William J. Baumol is Harold Price Professor of Entrepreneurship and academic director of the Berkley Center for Entrepreneurial Studies in the Stern School of Business, New York University, and senior economist and professor emeritus at Princeton University. Robert E. Litan is vice president for research and policy at the Kauffman Foundation and senior fellow at the Brookings Institution. Carl J. Schramm is president and chief executive officer of the Kauffman Foundation and a Batten Fellow at the Darden School of Business, University of Virginia.

"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

"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