The Wealthiest Nation In History

I'm reading a remarkable book called "The Capitalist Manifesto" by Andrew Bernstein. In it he tackles the task of explaining what it takes for countries to be wealthy and why political and economic freedom are requirements. He delves into the philosophical basis for the wealth of the capitalist nations and the utter poverty and destruction in lives and property of the socialist nations. Here is an example of what Mr. Berstein writes:

"Imagine the horror of the anti-capitalist, socialist mentalities if it was said to them: what if there were a country in which the government stays out of the economy? One with no tariffs or other legal restrictions on international trade - with no regulatory agencies, no minimum wage laws, no price or wage controls. Imagine, it is said to them, that the government limits neither investment coming in nor profit going out. There's no capital gains tax, no interest tax, no sales tax and a pittance in corporate bailout for companies that fail to compete on a free market. This imaginary country has a 15 percent flat tax, enabling its citizens to retain the preponderance of their earnings. Further, it extends no unemployment benefits, enacts no labor legislation and provides no Social Security, no national health insurance and scarcely any welfare. The welfare statist would recoil in horror from such a proposal; he would drown his interlocutor with dire warnings regarding the misery of the numberless poor and exploited who would be the inevitable victims of such a heartless, callous system. But in fact, that country exists, it is real; it's Hong Kong, one of the wealthiest nations of history." ( Read)

If you want to understand, finally, the dismal economic failure of the Soviet Union, China, North Korea and Cuba, to name just the biggies, read this book. The writing is clear, organized and exciting, if you are interested in history and ideas. With an extensive notes section with references at the end of book it's a treasure trove of information. Berstein organizes a vast array of facts from different sources and makes them accessible to the layman. While many of these facts are known kind of hodge podge by most educated people, Bernstein gives us the philosophical analysis for the differences among nations in the past and today - in other words the "why".

If we as a nation want to avoid going down the path of self destruction this is a must read book.