Monday, June 23, 2014

In defense of Global Capitalism

Johan Norberg's defense of Capitalism is not a new book but brings common sense in times of Thomas Piketty's fifteen minutes of fame. I have not read Piketty yet but all the debate around his work seems to defy evidence of how millions of people are moving out of poverty year after year thanks to practices close to Capitalism than the Marxism that he defends. 

Johan Norberg showed in In Defense of Global Capitalism, over 10 years before Piketty, case after case how solutions based on the respect of private property and classical liberal ideas have improve the lives of people all over the world. Indeed Norberg argues that more could be done if practices like immigration control and imposition of first world practices on third world were stopped. If Developed countries can care for the environment and reduce child labor is because they have achieved greater success, if we want developing countries to do the same we have to pull them quick instead of hold them back with additional burden.

My rating: 4 of 5 stars

Sunday, June 22, 2014

Free to Learn

In Free to Learn, Peter Gray brings another piece to the puzzle of Education. From his anthropological point of view he presents the case of how Play is the natural learning process while school is an institution design to control and alienate children. 

Overall Gray challenges parents to acknowledge that the system is destroying their children and that once the accept that they don´t want this for their children they can't continue supporting the current rotten system. Gray invites parents to try different alternatives, to trust their kids and create an environment that support their creativity and interaction.

I disagree on some contextual elements like his description of the Industrial Revolution. Nonetheless his message raises more questions and avenues to explore and research.

My rating 5 out of 5.

Tuesday, May 13, 2014

The Zero Marginal Cost Society

Interesting question with an ignorant answer.

The first part of The Zero Marginal Cost Society  is quite interesting. Indeed it is intriguing that so many industries are rapidly growing offering free or almost free products and services. How can an economy sustain if this phenomena advances.

More and more people can set their conditions about job and companies, they no longer are job takers and employees for life. Probably this is possible because people in advanced societies don't have to worry about where to live, what to wear, or what to eat. As Maslow and others have suggested once basic needs are covered without uncertainty people can focus more on higher order ones.

So far, Jeremy Rifkin presents an intellectual challenge. Artist giving away their job, free Education in MOOCs, Open Source software, etc.

In the second part Rifkin addresses the causes and obstacles and here I found way too many contradictions, misrepresentation of ideas like Capitalism and biased solutions. For instance Rifkin criticize the patent granted to genome labs and their market drive. Yet later he praises how low cost has ADN sequencing became.

Rifkin calls for the abolition of private property while promotes collaboration. How can someone collaborate in society if that person has nothing to offer, a private asset? For instance he mentions shared spare rooms as an alternative to expensive hotels. How can someone share a room of someone else? Or is someone really collaborating by offering a communal room?

Another subject that Rifkin elaborates is the idea of the Commons. He uses Orstrom's theory but misses the point that the commons need a ground of trust and supervision. How can such model become a world wide system is not answered and seems unbelievable.

As Ludwing Von Mises proved many years ago, Socialism is impossible without the economic calculation, specially on the means of production. In Rifkin's world the private property of means of production disappears. How can production be prioritized, who will give maintenance to the huge capital investments that allow the high productivity needed to achieve near zero marginal cost? how innovation will be sustained? None of these are addressed in the book.

Finally I would say that Rifkin identified how many of the cases he states as outliers are indeed reactions to the burden of government regulations and controls. From medicine, to building, energy, transportation, etc. in most of his cases the adversary is some form of government regulation, privilege, etc. Rifkin acknowledges the evil in government actions. Yet his conclusion is to give more power to governments instead of more private solutions.

In summary Rifkin's ideas can be summarized as "Don't bite the hand that feeds you".

My rating: 3 of 5 stars

Monday, May 5, 2014

Mindset: The New Psychology Of Success

Mindset: The New Psychology Of Success
Carol Dweck work proposes a theory of the difference between those who succeed and those who didn't. As the title of the book reveals it is all about Mindset. Dweck work is interesting, not sure of how scientifically thorough since the book is mainly anecdotal, yet his theory makes perfect sense and is easy to relate to personal life.

After covering the the ground for her theory, Dweck offers specific advice for sports, business, personal relationships, teachers and parents, and individuals. Her ideas are easy to understand, somehow difficult to implement since they require a change of habits, and worth trying.

Dweck ideas complement other frameworks like Angela Dockworth and Paul Tough on Grit and others on Resilience.

My rating: 4 of 5 stars

Saturday, April 12, 2014

The Capitalist and the Entrepreneur

Sometimes when I read entrepreneurial theories I wonder if academics speak to real entrepreneurs. Peter Klein book hit the nail in the head, from my personal experience in business. He explains the role of the entrepreneur and the markets, and why only a free system is fertile soil for entrepreneurial ventures to create real growth for society.

The Capitalist and the Entrepreneur is also relevant as it explains with great detail the principles and differences in the Austrian School of Economics. With plenty footnotes to guide the readers interest to deepen in this school of thought Klein discusses why Austrian ideas about the price theory, the role of capital allocation, etc. divert from mainstream economics that reduce the entrepreneur and the firm to an abstract black box. Using the ideas of the AE Klein portraits a dynamic and living organization with the entrepreneur, managers, people and resources.

Since the interest on entrepreneurship is on the rise, Klein's book should go hand in the promotion of these ideas.

My rating: 4 of 5 stars

Tuesday, March 11, 2014

Delusions of Power

Delusions of Power: New Explorations of the State, War, and Economy
In this book Robert Higgs summarizes his ideas on why we have to challenge the existence of government. One by one he knocks down, as dominoes, the rationalization to preserve government. 

Many people can't imagine a world without government because we were raise, by government, to believe it is a necessary institution. If humans had the creativity to create governments, we have so to create its substitute. Innovation has being restrained by the straw man discourse from governments. Like Dickens' Emperor Clothes we are reluctant to see, and Higgs does a great job in opening our eyes to understand that a world without government (as we know it) is not the same as a world of chaos.

Delusions of Power: New Explorations of the State, War, and Economy is a relevant book in the current political arena where parties keep up with the enchanting promises and people keep up believing in them.

My rating: 4 of 5 stars

Monday, February 10, 2014

Madmen, Intellectuals, and Academic Scribblers:


Wayne Leighton and Ed Lopez present in Madmen, Intellectuals and Academic Scribblers an interesting interpretation of the dynamic of regulations. Beginning with a clear fast forward history of philosophy they set the ground to present their model. Overall the book builds on Public Choice ideas adding the perspective of the entrepreneur of ideas. Contrary to common belief that ideas change only through crisis and revolutions, Leighton and Lopez explain the role of the Entrepreneurs of Ideas. If institutions are sound there is no need to revolutions, just a dynamic that resembles the spontaneous order in a market of ideas.

Each one of the roles act at different levels in society affecting the probabilities of ideas to win in the market. Each actor adequate the message to a different audience from the one who generate the ideas to the people who vote for them in the democratic game.


The book left me thinking on what was behind the scenes of current policies and regulations, and what new ones are in the making.