Department of International Development public lecture

23 Things They Don't Tell You About Capitalism

Professor Ha-Joon ChangCambridge University & Author of ‘23 Things They Don't Tell You About Capitalism’

Professor Robert Wade Chair, LSE

“There is no such thing as a free market.”

“Companies should not be run in the interest of their owners.”

Thing 3: Most people in rich countries are paid

more than they should be.

More ‘Things’

• Thing 19: Despite the fall of Communism, we are still living

in planned economies.

• Thing 4: The washing machine has changed the world more than the internet has.

• Thing 13: Making rich people richer doesn’t make the rest of us

richer.

• Thing 22: Financial markets need to become less, not more, efficient.

• Thing 20: Equality of opportunity may not be fair. • Thing 16: We are not smart enough to leave things to the

market.• Thing 23: Good economic policy does not require good

economists.

• Thing 15: People in poor countries are more entrepreneurial than people in rich countries.

Thing 13: Making rich people richer

doesn’t make the rest of us richer.

David RicardoJosef StalinYevgeni Preobrazhensky

Thing 15: People in poor countries are more entrepreneurial than people in rich

countries.

Who are the entrepreneurs? –Proportion of self-employed people

Rich countries• Average: 12.8%

• Norway: 6.7%

• US: 7.5%

• France: 8.6% (so, Dubya’s comment was a classic case of the pot calling the kettle black)

Poor countries• Average: 30-50%

• Ghana: 66.9%

• Bangladesh: 75.4%

• Benin: 88.7%

• Rich/Poor ratio: 2-4

• Bangladesh/US ratio: 10

• Norway/Benin ratio: 13

Thing One. There is really no such thing as a free market. Thing Two. Companies should not be run in the interest of their owners. Thing Three. Most people in rich countries get paid more than they should.Thing Four. The washing machine has changed the world more than the internet.Thing Five. Assume the worst about people, and you get the worst.Thing Six. Greater macroeconomic stability has not made the world economy more stable. Thing Seven. Free-market policies rarely make poor countries richer.Thing Eight. Capital has a nationality.Thing Nine. We do not live in a post-industrial age.Thing Ten. The US does not have the highest living standard in the world.Thing Eleven. Africa is not destined for under-development.Thing Twelve. Government can pick winners. Thing Thirteen. Making rich people richer doesn’t make the rest of us richer.Thing Fourteen. US managers are over-priced. Thing Fifteen. People in poor countries are more entrepreneurial than people in rich countries.Thing Sixteen. We are not smart enough to leave things to the market. Thing Seventeen. More education in itself is not going to make a country richer.Thing Eighteen. What is good for the General Motors is not necessarily good for the US.Thing Nineteen. Despite the fall of Communism, we are still living in planned economies.Thing Twenty. Equality of opportunities is unequal.Thing Twenty-one. Big government makes people more, not less, open to changes. Thing Twenty-two. Financial markets need to become less, not more, efficient.Thing Twenty-three. Good economic policy does not require good economists.

More informationUniversity website: Go to www.econ.cam.ac.ukand

look under ‘People’

Personal website: www.hajoonchang.net

E-mail: hjc1001@cam.ac.uk

Department of International Development public lecture

23 Things They Don't Tell You About Capitalism

Professor Ha-Joon ChangAuthor, Professor, Cambridge University

Professor Robert Wade Chair, LSE

『23 Things they don't tell you about capitalism』, 2010

• Author : Ha-Joon Chang

• Classification : Social sciences > Economics

• Published in UK

『그들이 말하지 않는 23가지 』, 2010

• 저자 : 장하준

• 분류 : 사회과학 > 경제학 >경제정책

DM Lee November 2011 http://bookpiri.wordpress.com

Thing 1. 자유 시장이라는 것은 없다

Thing 2. 기업은 소유주 이익을 위해 경영되면 앆 된다

Thing 3. 잘사는 나라에서는 하는 읷에 비해 임금을 많이 받는다

Thing 4. 읶터넷보다 세탁기가 세상을 더 많이 바꿨다

Thing 5. 최악을 예상하면 최악의 결과가 나온다

Thing 6. 거시 경제의 앆정은 세계 경제의 앆정으로 이어지지 않았다

Thing 7. 자유 시장 정책으로 부자가 된 나라는 거의 없다

Thing 8. 자본에도 국적은 있다

Thing 9. 우리는 탈 산업화 시대에 살고 있는 것이 아니다

Thing 10. 미국은 세계에서 가장 잘사는 나라가 아니다

Thing 11. 아프리카의 저개발은 숙명이 아니다

Thing 12. 정부도 유망주를 고를 수 있다

Thing 13. 부자를 더 부자로 만든다고 우리 모두 부자가 되는 것은 아니다

Thing 14. 미국 경영자들은 보수를 너무 많이 받는다

Thing 15. 가난핚 나라 사람들이 부자 나라 사람들보다 기업가 정신이 더 투철하다

Thing 16. 우리는 모든 것을 시장에 맡겨도 될 정도로 영리하지 못하다

Thing 17. 교육을 더 시킨다고 나라가 더 잘살게 되는 것은 아니다

Thing 18. GM에 좋은 것이 항상 미국에도 좋은 것은 아니다

Thing 19. 우리는 여젂히 계획 경제 속에서 살고 있다

Thing 20. 기회의 균등이 항상 공평핚 것은 아니다

Thing 21. 큰 정부는 사람들이 변화를 더 쉽게 받아들이도록 만든다

Thing 22. 금융 시장은 보다 덜 효율적읷 필요가 있다

Thing 23. 좋은 경제 정책을 세우는 데 좋은 경제학자가 필요핚 건 아니다