Customer Reviews

The Future of Capitalism: How Today's Economic Forces Shape Tomorrow's World

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Lester Thurow's "Future of Capitalism" is a VERY interesting book on globalization, and it is SO much more insightful than that silly "Lexus and Olive Tree." It does a great job of explaining the history and roles of the international / supranational organizations like WTO, World Bank, etc. Thurow is a highly respected liberal economist and he has a way of describing the "third industrial revolution" in a way that even old school economists can understand: It ain't about controlling or allocating resources anymore -- it's all about brainpower.

This is a particularly important book for two types of people to read: those who believe economic instability and inequality will lead capitalism to implode (they're wrong); and those who believe the economic engine of capitalism is running just fine, especially in the United States, and simply needs to be left alone by meddling do-gooders, thank you (they are wrong too). Neither view is realistic. Lester C. Thurow is quite well suited to explain why. He is practically a brand name on national television, known for making more sense of the economy than anyone could possibly expect from a dean at MIT. Although Thurow wrote this book in 1996, the trade deficit, the skewed distribution of revenue and the disparity between rich and poor continue to demonstrate the validity of his conclusion that fewer and fewer can get more and more for only so long. We highly recommend his insightful analysis, wishing only that Thurow proposed deeper solutions for the problems he so ably diagnosed.

It's rare to find a book which is so insightful. As people and politicians around the world are reeling and reacting to the dramatic economic changes happening around them, Thurow is the scholarly observer who explains to us so clearly why these changes are taking place. The author deepens our understanding of events by providing the historical context and presents us with our future dilemnas and challenges. Such as the widening gap between rich and poor. This book will be a light and demystifier to your economic world view. As far as economics go, this book is straight talk, captivating and excellent.

This book can be considered as one of the morden classics. I receommend this book to anyone. Sure there are some "factual mistakes" and most people can find arguments that they don't agree with. Recommendations for United States such as better education for the "bottom 2/3 of population", more R&D spending, better training, more national saving are something that everyone can agree upon. In fact it is exactly the same conclusions that were drawn in Michael Ports' <Competitive Advantage of Nations>. Yes on a scholarly level, Ports's book may be better. But personally I find Thurow's book more entertaining and a much more interetsing read. (I guess I am not a serious scholar, but how many of us are?) This book is targeted for the general public and thus cannot be too scholarly.

Scary stuff, well written. You may not agree with everything but it's definitely worth reading. Who knows, maybe he is right...

It seems remarkable that this book was published in 1994. It accurately forecasts one global macro-trend after another, and does so in a very lucid and straightforward manner. While some might see a liberal bias in this book, the ongoing march of events more than validates it.

I enjoyed the book although I cannot claim to have fully grasped everything he mentions. There are some profound implications regarding the future that Mr. Thurow makes. I believe that some of these transcend the theme of the book and are present realities in the world. For example, I think we will have to deal with the present growing selfishness that exists in the world today-- on a societal and personal level. So overall, a good book to help us understand our present condition and the issues of the future.

read capter 11 " economic Instability " , you would have escaped from being hit badly by 1997 " Asian Financial Crisis ".....

Lester C. Thurow in his book The Future of Capitalism provides a number of provocative insights into the past and future of capitalism. Thurow offers explanations about many factors that are causing global political and economic change. These include the shift to knowledge-based industries, large shifts in demographics resulting from immigration, the end of communism, the global economy, and the lack of a dominant economic, political or military power. Global change is occurring at a rapid pace. Thurow's insights help provide a viewpoint of the potential course for capitalism during the next century.

Thurow recognizes that an emerging world economy is being driven by a shift to knowledge workers or "man-made brainpower industries", decreasing transportation costs, and a rapidly improving communications network. This enables work to flow wherever it can be done at the lowest cost. Second and third world workers perform low-skilled tasks at a fraction of the cost of low-skilled workers in developed parts of the world. Knowledge workers readily travel and communicate to manage work regardless of where it is done. Geographic boundaries are breaking down and David Ricardo's theories about comparative advantage are taking on added meaning. National governments struggle to control what are now global enterprises that can readily set up shop wherever the political and regulatory climate is most favorable to their business. What is less clear is Thurow's analysis of the trade deficit in relation to his view on the global economy. He thinks that the U.S. trade deficit is a problem and that we cannot continue to run a trade deficit, which seems true. Thurow proposes, as a solution, some form of ration coupon with Japan, which appears to be protectionism for the U.S. economy. Thurow's view of a global economy seems conflicted by his concern over maintaining national economies through protectionism.

Thurow also provides an intriguing view of the future where no dominant economic, political, or military power is able to regulate economic actions. Who will be able to regulate corporate activities and provide for fair competition in the future? Who will be able to deal with externalities? Will we end up with mammoth international monopolies and oligopolies? These are just some of the questions that arise when considering Thurow's view of the future. Thurow provides few answers to these questions. Instead, he paints bleak pictures of a depressing return to the Dark Ages.

Thurow offers several other interesting and controversial insights. He declares that inflation is a "distinct volcano" and that Greenspan (note that Thurow's book was published in 1996) should not be overly preoccupied with controlling it. He claims that capitalism has no mechanism to ensure research and investment for the long-term, which could lead to stagnation without government involvement. He offers interesting views on the aging demographic and our ability to absorb the associated social costs by what amounts to a transfer of wealth to an elderly population. Thurow foreshadows a rise in religious fundamentalism driven by uncertainty in economic and social systems.

The Future of Capitalism is more relevant today than when it was published in 1996. Globalization has increased driven by political changes and technological advances. Many of the issues and insights raised by Thurow around demographics, immigration, falling wages, and the trade deficit are a more disruptive and destabilizing force in the current world economy. A big question remains. Will capitalism prevail because there is no other "ism" out there as an alternate social construct; or, will capitalism ultimately be replaced by another social construct as the invisible hand of capitalism fails on a global scale?

Mr. Thurow has explained, in a neoliberal way, at least, the problems ahead; capitalism had worked, and will continue to work; that is not the point; the point is SPEED, because all developed countries are, in one way or another, slowing down, and it does not seems to be a fast method to "jumpstart" them again, because all the "glory" of consumption has reached a limit, and such limit appears unbreakable unless some mayor measures are taken; unfortunately, in the political short-term sense, these measures are not quite popular, but they will work in some way in the mid and long terms. Contradictions in the system COULD be very dangerous, as the author pointed out. His main critic is that we know what we have to do is more than just GDP's and consumption, but nobody wants to take any risks.