THE FUTURE of CAPITALISM: FACING the NEW ANXIETIES (audiobook) by Paul Collier

Published in December of 2018 by HarperAudio.
Read by Peter Noble.
Duration: 9 hours, 26 minutes.

The author, Sir Paul Collier

Unabridged.

Paul Collier is an award-winning economics professor at Oxford University. His name is symbolic of how he approaches this book, The Future of Capitalism: Facing the New Anxieties. Collier has been knighted for his work as an economist. This means that he could have listed his name as Sir Paul Collier, but he does not. Collier may be a big shot professor who holds three positions at Oxford University (possibly the best university on the planet), but he is also the guy from Sheffield, England. Collier repeatedly compares it to Detroit because they are of a similar size and both lost a great deal of their industrial base over the last 50 years.

This book is intended to be read by the layman. Collier could certainly bury the reader with obscure terms, but he does not. Instead, he uses plenty of real world examples of well-known companies (Toyota vs. GM, for example) and well-known situations (how Johnson and Johnson reacted to the Tylenol poisoning scare in 1982, how Bear Stearns investment company put themselves into a completely ridiculous financial situation that helped kick off the worldwide Great Recession in 2008) to make his points. I am a licensed high school economics teacher, which means that I know enough economics to sound smart to people who don't know anything about economics and enough to sound dumb to actual economists. I followed about 97% of what Collier was saying. I will blame the parts that I didn't follow on the audiobook format - sometimes you get distracted when you listen and I did not rewind and re-listen. 

Collier points that the industrial Western world is splitting itself into two economic regions. In the United States we have mega-cities (NYC and Silicon Valley, for example) that are prosperous and the rest is "flyover country". Even local "big cities" like Detroit are struggling. In the UK, it is London and, well, everything else. These two regions are experiencing the modern economy quite differently. For example, President Trump points out (correctly) that the American economy is growing at a good rate. And Bernie Sanders points out (also correctly) that the benefits of this growth is largely going to certain groups and certain regions. The rise of these two men in the top ranks of the American political system are discussed in this book as a reaction to this type of economic growth. He points out that similar moves to more extremism in politics have happened across multiple modern economies.

Collier has considered various ways to re-structure tax policy to help even out this growth. He also advocates a move away from the business theory espoused by Nobel-winning economist Milton Friedman which can be written in shorthand this way: the sole purpose of a business is to generate profit for its shareholders (within the rules). Collier does not discount profit, but argues that making it the sole goal is shortsighted because it can make management shortsighted (especially since a lot of CEOs move after just a few years) and will choose to make quick cash rather than long term growth. He provides several examples and cites data that says that corporations that are privately held tend to do better than publicly held corporations precisely because the leadership of the privately held corporations are in it for the long haul.

But, this is not just a book about corporations, it is also a book about immigration, public policy, how the government can change the way it educates its young people, the way it retrains displaced workers and the way it approaches the chronically unemployed. He is a very big fan of the German approach to post-high school education, and if he describes it accurately, I cannot disagree.

This book was well read by Peter Noble, a gifted audiobook reader. It was a joy to listen to him read, but I suggest that the traditional book (or even e-reader) would be a better way to go through the material in case you want to take notes or re-read passages.

I rate this audiobook 5 stars out of 5. It can be found on Amazon.com here: THE FUTURE of CAPITALISM: FACING the NEW ANXIETIES by Paul Collier.

Collier mentioned this book in his book. I read it last year: JANESVILLE: AN AMERICAN STORY by Amy Goldstein.

I thought this book went very well to another book that I was reading at the same time: THE CORROSION of CONSERVATISM: WHY I LEFT the RIGHT by Max Boot.