The Mystery Of Capitalism Summary

There are three types of economic system, such as capitalism, socialism and communism. In the world the most powerful economic system is capitalism, which meant to increase an individual’s wealth, private ownership, competition and only the strongest in business will survive. However, the communism is a single political party controlled by the government, the private ownership banned and the government owned all business, land and property. Hernando Desoto has published a book about economic development title The Mystery of Capital: Why Capitalism Triumphs in the West and Fails Everywhere Else. He states that failure in capitalism keeps rest of the world not to benefit to produce capital. Also, he mentions about the wealth how to improve …show more content…
However, when Deng Xiaoping became a former chairman after Mao Zedong, he changes the communist economic system and choose a capitalist economic system.
Section 1 There are five mysteries of capital mentioned in the book of The Mystery of Capital which each chapters explains about them. The five mysteries of capital are ‘The Mystery of Missing Information’, ‘The Mystery of Capital’, ‘The Mystery of Political Awareness’, ‘The Missing Lessons of U.S. History’ and ‘The Mystery of Legal Failure’ that the main focus is the ‘The Mystery of Capital’. Hernando De Soto states that “In this book I intend to demonstrate that the major stumbling block that keeps the rest of the world from benefiting from capitalism is …show more content…
Each chapter is about the party of state, business, personnel, gun, corruption, region, capitalism and history. According to the book titled The Party: The Secret World of China’s Communist Ruler, the communist china is a capitalist economy and extent that the Communist China have that something else is its market economy. Richard McGregor mention that people support the capitalist economy at the time of Mao Zedong. The capitalist economy is an economy system depend on the production for profits of goods and services, also on the private property of production inputs and capital. During Mao Zedong leader, China’s economy was communism and capitalism was not allowed. The communism is limited individual’s freedom of choice over productions, and only government decide and owned all lands, properties and businesses. After Mao’s death, people start to control their own business and follow the capitalism then Deng Xiaoping become a leader and change the economy to capitalist so people could have freedom. As said by the book, Richard McGregor states that “After Mao’s downfall and death, the party went back to basics” (McGregor, 14). It means that the china’s economy changes from communism to capitalism because there is no communist leader to control the country and people. As well, there were some changes in the economy, like increase in wealth, growth to capitalism and