Politically Incorrect Guide To Capitalism Summary

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“The Politically Incorrect Guide to Capitalism” by Robert Murphy Book Review
Lainie Brillhart
Mount Vernon Nazarene University

“The Politically Incorrect Guide to Capitalism” Book Review
This paper will summarize the ideas presented in the book, “The Politically Incorrect Guide to Capitalism” by Robert Murphy. The book is filled with illustrations of how free market principles are superior to those of that involve government intervention and are more socialistic in nature. Throughout the book, it is apparent that author believes that the free market is the best way to grow our nation’s economy, alleviate social injustice and corrupt business practices, and solve environmental issues. Murphy believes that government regulations,
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Murphy believes that outsourcing is makes our economy stronger and our country richer (Murphy, p.162). If a company moved production offshores, the laid-off workers will have to find other jobs but corporate profits will rise and the shareholders will benefit, making American stronger. Almost all of Americans have retirement accounts in stock and bonds so the money that is lot in one area is made up for in another. Murphy compares outsourcing to a technological improvement that puts laborers out of work. A company has to invest in labor-cost reducing machinery to compete with China or the company will eventually cease to exist. Murphy also points out the offshore outsourcing gives countries the ability to specialize and achieve maximum efficiency and profitability as well as allowing businesses to serve new markets. The benefits of outsourcing are numerous and far outweigh the negative consequences. It actually makes our economy stronger and more …show more content…
He explains that shipping low cost products from foreign countries to the United States does not makes us poorer, it makes us richer because it allows us to afford more. Generally the more a country participates in free trade, the higher the standard of living. If the government imposes tariffs on Japanese cars, it will help Detroit autoworkers, but it doesn’t make America off as a whole better. In other words, any gains to the winners are swapped for gains for the losers. In a free market, automakers would be forced to provide cars that consumer want or produce them at a competitive cost. This may mean that some people will have to shift to other jobs, but they should not prop up employment in areas that we are not competitive. In a free market, competition is good and countries should specialize in their area of expertise in which they can

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