What went wrong with capitalism? Ruchir Sharma's explanation is unlike any you have heard
before. Progressives are partly right when they mock modern capitalism as "socialism for the
rich " but what really happened in recent decades is that government in developed nations
expanded in just about every measurable dimension from spending and regulation to the sheer
scale of its rescues each time the economy wobbled. The result Sharma says is "socialized
risk " expensive government guarantees for everyone-welfare for the poor entitlements for the
middle class and bailouts for the rich. Voters say they are disillusioned with capitalism but
a system so distorted by government interventions is a dysfunctional version of free market
ideals. As a result productivity and economic growth have slowed sharply shrinking the pie
for everyone and stoking popular anger. Since these flaws developed as the government expanded
building an even bigger state will only double down on what's gone wrong. The answer Sharma
offers is a series of seven fixes to restore the balance between state support and free markets
and lay the path to a more prosperous and happier future.
