Books: The Politically Incorrect Guide to Capitalism

I finished my simultaneous second listen of the audiobook version (good for gym workouts) and first read of the print version (good for the additional book references) of The Politically Incorrect Guide to Capitalism by Dr. Robert P. Murphy. It’s a good primer on basic free market oriented capitalism, though I thought some of his arguments supporting the principles were a bit thin.


For example he says CEOs should get big golden parachutes because they take on big risk to create major advances, whether they succeed or not. He says if you were a factory line worker you wouldn’t agree to large pay if the company sells all the products or no pay if it doesn’t. I agree that CEOs should be paid well but that they get large basic pay commensurate with their job already and perhaps should only get high bonuses or parachutes for success. Perhaps company directors should reconsider the contractual agreements they are making with CEOs. EVERY one might work harder if there was some base pay and some merit pay involved, but that’s another issue.

He also uses the example of Microsoft and the lawsuits levied for MS’s including Internet Explorer and excluding other internet browsers. I agree that Windows is Microsoft’s product and they should be able to include or exclude anything they want. Murphy uses the analogy that an auto manufacturer includes the engine and tires on a car and you wouldn’t want one without them. I say the engine and tires are much more critical to the operation of the car than Internet Explorer is to the operation of Windows. He has the right idea but the wrong analogy.

This is an easy read, but I liked the short read ECONOMICS IN ONE LESSON (Amazon)  by Henry Hazlitt much better.


About JohnRH

Retired, avid winter skier, avid reader, traveler (avidly). :)
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