The Captured Economy

By; Brink Lindsey and Steven M. Teles Having just read and commented on “Capital” by Thomas Piketty, I was pleased to find this newly published book at the Library. It also provides sometimes difficult to understand issues, but it is a much easier read than CAPITAL. The authors do comment on that book. Perhaps it was the impetus they needed to write their own book. This one is only 180 pages. I am almost afraid to write a review based on the warning written on the publishing page. It says, in part “All rights reserved. No part of the publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means”. As a result by comments will not be specific but I will still try to get you to think about the issues. What I believed was missing from the other book “Capital” was specifics. It contained reams of data stating the disparity in wealth between the rich and the rest of us but not dwelling on why. This book does. The hardest to understand is the financial system. What I learned was that after the depression in 2008 caused by the reckless behavior of the banking system: they have, step by step, loosened controls to where the down payments are miniscule compared to what we remember when we first attempted to purchase a home. Qualifications have also been eased to where the ability to pay off loans is not as stringent as they should be. These are the driving forces which have resulted in the housing boom today. Any attempt to put reason back into the system will be vigorously contested. Another reason for increasing home values is the lack of space for new homes. Particularly in highly congested cities like San Francisco the costs rise to the point where even well paid people cannot afford to purchase. They also discuss licensing requirements to be a physician, dentist, hair dresser, barber, etc. While justified to protect the public it has the effect of limiting entrants into those fields. The fewer number of Doctors graduating is also a limiting factor. They do end with suggestions on what could be done. I will not enumerate them. No matter what, the present system in effect at all levels of government, favor those already in the system. Not much chance of keeping the rich from getting richer. Read this book if you want to learn more. Jack B. Walters September 2