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Capitalism 4.0: The Birth of a New Economy in the Aftermath of Crisis
Capitalism was not destroyed by the crisis, but it was irrevocably changed. This provocative audio book shows how the forces that precipitated the financial meltdown of 2007-2009 are now creating a new and stronger version of the global capitalist system. This system will continue to be led and shaped by the U.S. if its businesses and politicians play their cards well.
The crisis that followed the collapse of Lehman Brothers marked the fourth systemic transformation of capitalism since the late eighteenth century. The first of these great transitions launched the century of classical capitalism from the Napoleonic Wars to the Great Depression. The second version of capitalism emerged in the 1930s with the New Deal and government-led Keynesian economics, but blew up in the great inflation of the 1970s. That crisis launched the third age of capitalism starting with the elections of Margaret Thatcher and Ronald Reagan in 1979-1980.
This business-led period culminated in the "market fundamentalist" excesses of George W. Bush, Alan Greenspan, and Henry Paulson.
Market fundamentalism collapsed in 2008, but the crash has brought into play capitalism's unerring instinct for self-preservation. As a result, the next version of the capitalist system is now evolving: Capitalism 4.0. But as the global economy is reinvented, will American-led democratic capitalism or Chinese-style state capitalism prevail?
In this wide-ranging and controversial audio book, Anatole Kaletsky puts the upheavals of 2007-2009 in historical and ideological perspective. He describes the emerging features of the new capitalist model, explains how it will differ from previous versions, and suggests how the rise of Capitalism 4.0 could change politics, finance, international relations, and economic thinking in the coming decades.
The crisis that followed the collapse of Lehman Brothers marked the fourth systemic transformation of capitalism since the late eighteenth century. The first of these great transitions launched the century of classical capitalism from the Napoleonic Wars to the Great Depression. The second version of capitalism emerged in the 1930s with the New Deal and government-led Keynesian economics, but blew up in the great inflation of the 1970s. That crisis launched the third age of capitalism starting with the elections of Margaret Thatcher and Ronald Reagan in 1979-1980.
This business-led period culminated in the "market fundamentalist" excesses of George W. Bush, Alan Greenspan, and Henry Paulson.
Market fundamentalism collapsed in 2008, but the crash has brought into play capitalism's unerring instinct for self-preservation. As a result, the next version of the capitalist system is now evolving: Capitalism 4.0. But as the global economy is reinvented, will American-led democratic capitalism or Chinese-style state capitalism prevail?
In this wide-ranging and controversial audio book, Anatole Kaletsky puts the upheavals of 2007-2009 in historical and ideological perspective. He describes the emerging features of the new capitalist model, explains how it will differ from previous versions, and suggests how the rise of Capitalism 4.0 could change politics, finance, international relations, and economic thinking in the coming decades.
415 pages, Kindle Edition
First published January 1, 2010
25 people are currently reading
452 people want to read
About the author
Anatole Kaletsky
9 books5 followersAnatole Kaletsky is an economist and journalist based in the United Kingdom. He has written since 1976 for The Economist, The Financial Times and The Times of London before joining Reuters and The International Herald Tribune in 2012. He has been named Newspaper Commentator of the Year in the BBC's What the Papers Say awards, and has twice received the British Press Award for Specialist Writer of the Year.
Kaletsky has been an economic consultant since 1997, providing policy analysis and asset allocation advice to over 800 financial institutions, multinational companies and international organisations through his company, Gavekal, which is co-run with Louis and Charles Gave. He was elected to the governing Council of the Royal Economic Society in 1998.
Kaletsky has been an economic consultant since 1997, providing policy analysis and asset allocation advice to over 800 financial institutions, multinational companies and international organisations through his company, Gavekal, which is co-run with Louis and Charles Gave. He was elected to the governing Council of the Royal Economic Society in 1998.
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Displaying 1 - 19 of 19 reviews
April 6, 2015
There's something about capitalist economics that creates this parade of blinkered assholes pretending they're above it all while still falling in lock-step with fashionable dogma. Life is too short.
April 28, 2011
I've never been too fond of capitalism, but I do like Mcdonald's hamburgers, go figure.
The book seems to be telling me that if it wasn't for the bailouts and such, the world would have experienced a great depression instead of a great recession. It does make a kind of sense, and then goes on to say that in the future (Capitalism 4.0) It should be expected of governments to take a more active role in managing the markets.
I am more interested in Capitalism 5.0+, or the end of the market.
The book seems to be telling me that if it wasn't for the bailouts and such, the world would have experienced a great depression instead of a great recession. It does make a kind of sense, and then goes on to say that in the future (Capitalism 4.0) It should be expected of governments to take a more active role in managing the markets.
I am more interested in Capitalism 5.0+, or the end of the market.
December 7, 2011
Books about finance, economics, either they're great or terrible.
Few are in between.
This author thinks the great financial crisis, CFC, wasn't caused
by deadbeat borrowers,stupid bankers, or greed on wall street.
It was all caused by........ ONE MAN.
Sec. of Treasury, Hank Paulson.... bla bla bla...
If you believe that, I have a bridge in NYC for sale.
Few are in between.
This author thinks the great financial crisis, CFC, wasn't caused
by deadbeat borrowers,stupid bankers, or greed on wall street.
It was all caused by........ ONE MAN.
Sec. of Treasury, Hank Paulson.... bla bla bla...
If you believe that, I have a bridge in NYC for sale.
April 15, 2016
An excellent book on the way forward from the Credit Crunch and the collapse of market fundamentalism. Sometimes it leans a little too heavily in the Keynesian direction for my taste but, on the whole, a great attempt to develop a 'mixed economy' paradigm.
August 21, 2018
Are you worried that capitalism will be dismantled following its alleged failure during the recent financial crisis? You shouldn’t worry too much because, as Anatole Kaletsky puts it, “capitalism doesn’t break because it bends”. Democratic capitalism has self-improvement in its DNA. In fact, capitalism has suffered and survived harrowing crises before and each time transformed into a new and better version. Anatole Kaletsky is well known in economic circles. Some know him as the “Kal” of GaveKal Capital, others as a leading columnist of the Financial Times, The Economist, The Times or Reuters. He is a global authority on matters of economics and politics and eminently suited to analysing capitalism’s past and future.
Kaletsky applies the notation of computer software to the history of capitalism. The versions so far are 1, 2 and 3, each with its set of major updates labelled e.g. 3.1, 3.2 and 3.3. Roughly speaking, version 1 was the liberal free- trade epoch from Adam Smith in the late 18th century to the Great Depression of the 1930’s. This was replaced by version 2 a.k.a. the Keynesian era until the stagflation of the 1970’s. Then version 3 took over, with its Friedman- inspired liberalism spearheaded by Ronald Reagan and Margaret Thatcher. This latest version had reached its “market fundamentalist” update 3.3 by the time of the financial crisis of 2007-08. And here we are, stumbling into Capitalism 4.0 but still struggling to make out its shape.
What’s needed now, argues Kaletsky, is not the dogmatic view of previous versions where either the market or the government were seen as the best solution to any economic problem. In our next stage of development, the pros and cons of each must be acknowledged. Capitalism 4.0 must involve a mixed economy. Government finances in Western societies being what they are, in future we must accept a smaller yet more active government. The complexity, ambiguity and unpredictability of our modern economy require adaptive and creative hybrid solutions.
What I love about Kaletsky’s work is how he explains some very complex issues, like the role of fiat money, in a plain and sensible way that avoids sensation and aids understanding. He offers an optimistic view of humanity and our ability to invent new solutions to emerging challenges. He argues even more compellingly for democratic capitalism as the best vehicle for self-improvement in human societies. All in a wonderfully fluent language and dazzling logic.
The book is not without flaws, however. I was surprised to find several factual errors in areas I happen to be familiar with. Few would agree e.g. that Benoit Mandelbrot was the sole inventor of chaos theory or that behavioural economics is mainly about crowd psychology. Details for sure, but when sloppy research is revealed it makes it harder to trust any and all of the presented facts. There are also some logical inconsistencies in the book. If Kaletsky advises economic thinkers to embrace ambiguity, why heap so much blame for the financial crisis on the actions of one man, those of Treasury Secretary Hank Paulson? And if he sees the future as genuinely unpredictable, why make so many explicit predictions about the world of Capitalism 4.0?
These are however beauty spots on a book that should be mandatory for any economic policy maker. I only wish our elected officials could match Anatole Kaletsky in his nuanced and cool- headed understanding of where we are and where we need to be going.
Kaletsky applies the notation of computer software to the history of capitalism. The versions so far are 1, 2 and 3, each with its set of major updates labelled e.g. 3.1, 3.2 and 3.3. Roughly speaking, version 1 was the liberal free- trade epoch from Adam Smith in the late 18th century to the Great Depression of the 1930’s. This was replaced by version 2 a.k.a. the Keynesian era until the stagflation of the 1970’s. Then version 3 took over, with its Friedman- inspired liberalism spearheaded by Ronald Reagan and Margaret Thatcher. This latest version had reached its “market fundamentalist” update 3.3 by the time of the financial crisis of 2007-08. And here we are, stumbling into Capitalism 4.0 but still struggling to make out its shape.
What’s needed now, argues Kaletsky, is not the dogmatic view of previous versions where either the market or the government were seen as the best solution to any economic problem. In our next stage of development, the pros and cons of each must be acknowledged. Capitalism 4.0 must involve a mixed economy. Government finances in Western societies being what they are, in future we must accept a smaller yet more active government. The complexity, ambiguity and unpredictability of our modern economy require adaptive and creative hybrid solutions.
What I love about Kaletsky’s work is how he explains some very complex issues, like the role of fiat money, in a plain and sensible way that avoids sensation and aids understanding. He offers an optimistic view of humanity and our ability to invent new solutions to emerging challenges. He argues even more compellingly for democratic capitalism as the best vehicle for self-improvement in human societies. All in a wonderfully fluent language and dazzling logic.
The book is not without flaws, however. I was surprised to find several factual errors in areas I happen to be familiar with. Few would agree e.g. that Benoit Mandelbrot was the sole inventor of chaos theory or that behavioural economics is mainly about crowd psychology. Details for sure, but when sloppy research is revealed it makes it harder to trust any and all of the presented facts. There are also some logical inconsistencies in the book. If Kaletsky advises economic thinkers to embrace ambiguity, why heap so much blame for the financial crisis on the actions of one man, those of Treasury Secretary Hank Paulson? And if he sees the future as genuinely unpredictable, why make so many explicit predictions about the world of Capitalism 4.0?
These are however beauty spots on a book that should be mandatory for any economic policy maker. I only wish our elected officials could match Anatole Kaletsky in his nuanced and cool- headed understanding of where we are and where we need to be going.
August 23, 2017
A manifesto on the direction for the evolution of capitalism starting with the historical context of the different stages of capitalism, focusing on the relationship, nature and responsibilities of market forces/ government intervention. An attempt to explain the escalation/resolution of economic boom-bust cycles and crises and a look at the different perspectives towards economics in academia. Bold predictions on what the new direction for capitalism will look like.
September 21, 2021
Love, love, love! If you're anxious about the closer interplay between state and capital then the author offers you quite a few interesting possibilities of how things may go about. So if you're someone who is terrified of things like MMT then you may wanna read this book. It's short and sweet and I quite loved it. Only thing that annoyed me about the book was the authors veneration of IBM and GE.
May 25, 2023
A somewhat centrist account of the housing crisis. Worth recommending to extremists to hopefully balance their thinking.
October 23, 2018
(review written in 2011, mysteriously gone missing, reinstated in 2018)
Books about the latest crisis are predominantly from the angle that "we're all doomed."
Kaletsky, whom I have admired and read a lot over the past 20-odd years, resolutely does not think we are. His main thesis is that capitalism has suffered setbacks before and each time (namely after the Great Depression and after the stagflationary seventies) it has reinvented itself and thrived. He identifies four "megatrends" (three really: globalisation, the great moderation and the democratization of debt) that remain in place and will keep the world economy going in the medium term.
The book is full of deep and rather iconoclastic analysis, as well as packed with facts that are not widely publicised. Trouble is, I've just finished it and I remain unconvinced.
How come? First of all, Kaletsky provides the best analysis, bar none, of how we got into this mess. Global imbalances, animal spirits, the "Minsky moment," "reflexivity," income inequality, it's all there. Somehow, though, Kaletsky thinks all of the above added up to less than eveybody thinks and a single man, the doctrinaire Hank Paulson, managed to bring down a world that was already on the mend. He devotes 28 whole pages to his bete noire!
Funnily enough, the book then goes on to explain how we should deal with all these problems, even though they did not really cause the recession. Kinda weird.
Regardless, the book is well worth a read, because it is comfortably the most coherent "What me worry" account of the world economy to emerge so far. With no sense of irony, the author actually lists many of the risks the economy is facing in a chapter of precisely that name!
Books about the latest crisis are predominantly from the angle that "we're all doomed."
Kaletsky, whom I have admired and read a lot over the past 20-odd years, resolutely does not think we are. His main thesis is that capitalism has suffered setbacks before and each time (namely after the Great Depression and after the stagflationary seventies) it has reinvented itself and thrived. He identifies four "megatrends" (three really: globalisation, the great moderation and the democratization of debt) that remain in place and will keep the world economy going in the medium term.
The book is full of deep and rather iconoclastic analysis, as well as packed with facts that are not widely publicised. Trouble is, I've just finished it and I remain unconvinced.
How come? First of all, Kaletsky provides the best analysis, bar none, of how we got into this mess. Global imbalances, animal spirits, the "Minsky moment," "reflexivity," income inequality, it's all there. Somehow, though, Kaletsky thinks all of the above added up to less than eveybody thinks and a single man, the doctrinaire Hank Paulson, managed to bring down a world that was already on the mend. He devotes 28 whole pages to his bete noire!
Funnily enough, the book then goes on to explain how we should deal with all these problems, even though they did not really cause the recession. Kinda weird.
Regardless, the book is well worth a read, because it is comfortably the most coherent "What me worry" account of the world economy to emerge so far. With no sense of irony, the author actually lists many of the risks the economy is facing in a chapter of precisely that name!
October 4, 2010
Heady ride through the history and future of capitalism
Capitalism is dead; long live capitalism. That’s the central tenet of veteran business journalist Anatole Kaletsky’s instructive, perceptive tome. Global capitalism has served humanity pretty well over the centuries, and it has survived by changing with the times. The aftermath of the 2008 financial crisis and the near collapse of the world’s financial system demand a major revamp of free market thinking. The new version, which Kaletsky posits as the fourth in capitalism’s history, will take its lessons from the past and adapt them to harness market forces in the 21st century. getAbstract recommends his thorough recap of what’s happened and his vision of what probably will happen – including economic recovery – to all those looking for a cogent handle on the economic future.
To learn more about this book, read the following online summary: http://www.getabstract.com/summary/14...
Capitalism is dead; long live capitalism. That’s the central tenet of veteran business journalist Anatole Kaletsky’s instructive, perceptive tome. Global capitalism has served humanity pretty well over the centuries, and it has survived by changing with the times. The aftermath of the 2008 financial crisis and the near collapse of the world’s financial system demand a major revamp of free market thinking. The new version, which Kaletsky posits as the fourth in capitalism’s history, will take its lessons from the past and adapt them to harness market forces in the 21st century. getAbstract recommends his thorough recap of what’s happened and his vision of what probably will happen – including economic recovery – to all those looking for a cogent handle on the economic future.
To learn more about this book, read the following online summary: http://www.getabstract.com/summary/14...
October 4, 2010
Heady ride through the history and future of capitalism
Capitalism is dead; long live capitalism. That’s the central tenet of veteran business journalist Anatole Kaletsky’s instructive, perceptive tome. Global capitalism has served humanity pretty well over the centuries, and it has survived by changing with the times. The aftermath of the 2008 financial crisis and the near collapse of the world’s financial system demand a major revamp of free market thinking. The new version, which Kaletsky posits as the fourth in capitalism’s history, will take its lessons from the past and adapt them to harness market forces in the 21st century. getAbstract recommends his thorough recap of what’s happened and his vision of what probably will happen – including economic recovery – to all those looking for a cogent handle on the economic future.
To learn more about this book, read the following online summary: http://www.getabstract.com/summary/14...
Capitalism is dead; long live capitalism. That’s the central tenet of veteran business journalist Anatole Kaletsky’s instructive, perceptive tome. Global capitalism has served humanity pretty well over the centuries, and it has survived by changing with the times. The aftermath of the 2008 financial crisis and the near collapse of the world’s financial system demand a major revamp of free market thinking. The new version, which Kaletsky posits as the fourth in capitalism’s history, will take its lessons from the past and adapt them to harness market forces in the 21st century. getAbstract recommends his thorough recap of what’s happened and his vision of what probably will happen – including economic recovery – to all those looking for a cogent handle on the economic future.
To learn more about this book, read the following online summary: http://www.getabstract.com/summary/14...
July 23, 2011
Insightful piece that defines the interplay between economics and politics in the post financial crisis era. Through drawing upon past economic disasters/miracles, Kaletsky extrapoliates the development of capitalism strongly substantiated by his extensive knowledge in the subject matter. Capitalism, the triumphant economic modus operandi of the past century, would not falter in the face of a crisis. Instead, Capitalism would reengineer itself to fit the fluidity and uncertainty of the economic future, marked most prominently by a renewed involvement of the government in setting the tone for the financial dealings of the disgraced sector.
August 9, 2017
Very dense subject but hang in there. If you are not an economist, you need to lean your head back and let the words pour over you. At some point in the text, it should all click (it did for me.)
Bottom line, Mr. Kaletsky's theses is not whether capitalism will survive the current "Great Recession" but what type of capitalism will it be. He starts off by explaining the three other incarnations of capitalism starting after the defeat of Napoleon (1815) up to 2010.
I am glad I read it. I feel I have a better understanding of real world marco-economic issues of the day.
Bottom line, Mr. Kaletsky's theses is not whether capitalism will survive the current "Great Recession" but what type of capitalism will it be. He starts off by explaining the three other incarnations of capitalism starting after the defeat of Napoleon (1815) up to 2010.
I am glad I read it. I feel I have a better understanding of real world marco-economic issues of the day.
Read
August 3, 2011The opening page of this book contains the sentence: "A return to decent economic growth and normal financial conditions is likely by the middle of 2010....." *coughs* The rest of the book's argument is judging by the introduction and conclusion which is all I read is that capitalism can and will survive so long as it introduces a sort of profit-driven green new deal accompanied by ecocological and socially-based accounting standards. The alternative to this is a loss of power of Western capitalism to the Beijing Consensus.
August 31, 2012
First off, let me be clear: if you haven't at least taken one course in Macro Economics, then chances are you might not understand what author Kaletsky is saying. That being said, this is one of the best explanations about the rise and fall of different economic theories, and why the crisis of 2008 is changing the current Monetarist viewpoint.
Kaletsky argues that some hybrid form of Keynesianism and Monetarism will emerge in the very near future, and what each view brings to the table in tomorrow's monetary policy.
Kaletsky argues that some hybrid form of Keynesianism and Monetarism will emerge in the very near future, and what each view brings to the table in tomorrow's monetary policy.
December 29, 2012
Long read, many good theories and possibilities. The author leaves himself a lot of wiggle room much as my son did when I asked him why he was majoring in Psychology as an undergraduate. His answer was "because there are no wrong answers".
Want to read
December 19, 2012Deutsche Version "Kapitalismus 4.0 - Geburtsstunde einer Wirtschaftsordnung
http://www.amazon.de/Kapitalismus-4-0...
http://www.amazon.de/Kapitalismus-4-0...
February 5, 2015
This is a great overview of our current financial mess and how we got here, and full of optimism to boot. Not an easy read but well worth it.
April 8, 2016
Would make a better article than a book
Displaying 1 - 19 of 19 reviews