''The Politically Incorrect Guide to Capitalism'' is a 2007 book by

Austrian school The Austrian school is a Heterodox economics, heterodox Schools of economic thought, school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result primarily from the motivat ...

economist

Robert P. Murphy Robert Patrick Murphy (born May 23, 1976) is an American economist. Murphy is research assistant professor with the Free Market Institute at Texas Tech University. He has been affiliated with Arthur Laffer, Laffer Associates, the Pacific Research ...

. It is the ninth book in the

Regnery Publishing Regnery Publishing is a politically conservative book publisher based in Washington, D.C. The company was founded by Henry Regnery in 1947. In December 2023, Regnery was acquired from Salem Media Group by Skyhorse Publishing, with Skyhorse ...

'' The Politically Incorrect Guides'' (P.I.G.) series. Written as a result of a poll by P.I.G. readersThe Politically Incorrect Votes Are In
/ref> that stated a book on

economics Economics () is a behavioral science that studies the Production (economics), production, distribution (economics), distribution, and Consumption (economics), consumption of goods and services. Economics focuses on the behaviour and interac ...

, ''The Politically Incorrect Guide to Capitalism'' aims to refute what it sees as common misconceptions resulting from

Keynesian economics Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomics, macroeconomic theories and Economic model, models of how aggregate demand (total spending in the economy) strongl ...

about what

capitalism Capitalism is an economic system based on the private ownership of the means of production and their use for the purpose of obtaining profit. This socioeconomic system has developed historically through several stages and is defined by ...

actually is. ''The Politically Incorrect Guide to Capitalism'' argues against criticisms of capitalism, amongst which are: * it causes ecological destruction * it causes vast

income inequality In economics, income distribution covers how a country's total GDP is distributed amongst its population. Economic theory and economic policy have long seen income and its distribution as a central concern. Unequal distribution of income causes ...

, as well as

racism Racism is the belief that groups of humans possess different behavioral traits corresponding to inherited attributes and can be divided based on the superiority of one Race (human categorization), race or ethnicity over another. It may also me ...

* it causes an unpredictable

boom and bust Business cycles are intervals of general expansion followed by recession in economic performance. The changes in economic activity that characterize business cycles have important implications for the welfare of the general population, governmen ...

cycle Instead, Murphy argues that they result from government efforts to regulate the free market that have the effect of distorting

laissez-faire ''Laissez-faire'' ( , from , ) is a type of economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies or regulations). As a system of thought, ''laissez-faire'' ...

supply and demand that would encourage the most rational allocation of resources possible, as well as their conservation for

future generations Future generations are Cohort (statistics), cohorts of hypothetical people not yet born. Future generations are contrasted with current and past generations and evoked in order to encourage thinking about intergenerational equity. The Moral agenc ...

. For example, with

endangered species An endangered species is a species that is very likely to become extinct in the near future, either worldwide or in a particular political jurisdiction. Endangered species may be at risk due to factors such as habitat loss, poaching, inv ...

such as rhinos it is argued that if they were freely traded those who used their parts would have a stake in maintaining supply and conservation would improve (page 49). It is likewise argued that

antitrust laws Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust l ...

are unnecessary and that the "

robber barons Robber baron may refer to: * Robber baron (feudalism), an unscrupulous medieval landowner * Robber baron (industrialist) Robber baron is a term first applied by 19th century muckrakers and others as social criticism to certain wealthy, powerfu ...

" actually benefited the US' poor much more than any government aid has ever done.

Notes and references

Further reading