Turbo Capitalism

by Edward N. Luttwak

Book Overview

In this incisive critical analysis of today's free market capitalism, Edward Luttwak shows how it is vastly different from the controlled capitalism that flourished so successfully from 1945 to the 1980s. Turbo-capitalism is private enterprise liberated from government regulation, unchecked by effective trade unions, unfettered by concerns for employees or investment restrictions, and unhindered by taxation. It promises a dynamic, expanding economy...

• Format: Hardcover
• Language: English
• ISBN: 0060193301
• ISBN13: 9780060193300
• Release Date: February 1999
• Publisher: Harper
• Length: 304 Pages
• Weight: 0.15 lbs.
• Dimensions: 1.0" x 6.1" x 9.3"

Customer Reviews

what do the numbers mean

what do the numbers mean? what are the realities and outcomes of aspiring for some numbers to go up and other numbers to go down? Here they are. You can rely on the author to be combine honesty with actual understanding of the world.

comprehensive economic look at the world

I've made a habit of reading books on economics within the past year and this one is at the top of my recommendation list. Luttwak clearly describes the situation of capitalism worldwide, from the most regulated to the least restrictive economies, which he dubs turbo-capitalist (America and Britain.) He is clear that the tradeoff is security and broad wealth distribution versus efficiency and economic inequality. There is no resisting the move toward efficiency, because there is no way to compete with it. So, the whole world is inevitably moving in the turbo-capitalist direction. There are good and bad aspects of this which Luttwak discusses but regardless, we are going with the flow in which privatization and de-regulation are the driving forces, bringing rapid change, dislocation of labor, uncertainty of employment and anxiety about economic security. This book was educational for me on the topic of the establishment of the EU and the ECU (Euro.) I was particularly interested in his discussion of central banking, but found myself eagerly turning every page in expectation of what I'd find him explaining next. Luttwak is equally at home describing why Americans are such super-consumers, the Italian way of protecting jobs in a closed (but opening) economy, and the function of the Russian mafia in countering the economic power of the Russian state. An informative and entertaining read that is bound to add depth to the reader's understanding of current events.

Insightful and very readable analysis of the new capitalism

Unlike some other reviewers, I find that Edward Luttwak's analysis of the new capitalism, or what he calls Turbo capitalism, was very well considered and presented. Luttwak knows europe very well, as he lives and teaches in Italy and speaks a number of languages fluently. The book is not a condmenation o cpaitalism; rather it shows how from the late seventies and after the fall of Soviet communism the Keynesian economic system that had been devised to produce a compromise between the aspirations of socialism and the practical realities of capitalism, which existed in much of the Western world has been dismantled. He notes that in order to reduce the appeal of socialism, which was gaining ground throughout Europe prior to the rise of fascism and after the Second World War, Western governments were almost forced into satisfying vast numbers of their populations by institutionalizing such benefits as free medical service and schooling. the equalizing policies help to soften demands for outright socilaism while allowing free enterprise to grow - albeit with some regulation. Luttwak then terms 'turbo capitalism' that transformation, which took place after the fall of the Berlin wall, characterized by the de-regualtion of free enterprise and the simultaneous retraction of the social welfare mechanisms that had been established in the post-war period. Luttwak also looks at how certain market inefficiencies, like having too many employees, family businesses and fewer working hours actually helped make the 'capitalist' system more sustainable for the vast majority - or for what used to be the middle class until a decade ago. Turbo capitalism has accelerated and accentuated class divides, reducing the influence and size of the middle class. There are some cultural anecdotes involving work hours and differences in public morality between the United States and Europe mentioned here and there and they add an amusing effect. i found little to object in what he noted, as he remained fair and relevant. Overall this is an excellent book, which provides a great deal of insight into an the socio-economic processes that affecting the modern society.

Very serious criticism.

I totally agree with Edward Luttwak's plain talk: today's capitalism with its managing for the short time, profits the happy few, but is a disaster for the many: abrupt mass firings, disruption of individual lives, of families, of communities and even of entire regions, insecurity of the middle classes.Fortunately, he believes that turbo capitalism will pass, but, for me, not immediately.For the reasons, read for instance the excellent books on US politics by Gore Vidal.One of Luttwak's cures to reverse the actual situation is control by the government, but if the government is controlled by the few (private corporations and their main individual shareholders), the proceeds of capitalismn will continue to flow to the few.As a matter of fact, he is severe for the actual governmental policies, like monetarism (it devalues labor rather than money); like the conversion of all institutions - hospitals etc. - into profit-maximizing corporations, or the hypocritical war on drugs. I quote: "Even the fanciest illegal substances hardly make a dent in the budget of many users, some of whom are multi-millionaires ... The ruined drug addict on his way to a penniless death in a sordid alley is mostly myth: if it were not so ... Colombian drug lords would have to be content with tenements and bicycles instead of palatial mansions and executive jets." (p.210)His conclusion is obvious: what is needed is a government that governs for the many and distributes more equally than now the proceeds of capitalism over the whole population, not only through wages, but also through better social welfare.But this is only possible via the democratic process.This book contains also excellent analyses of, among others, the causes of World War I, mercantilism or the situation in Russia after the fall of the Berlin wall.An important work. Not to be missed.

Globalization And "Free Trade" Exposed

What happens when the pursuit of wealth becomes such a dominant force in the world that all moral, ethical, and societal values become secondary? What happens when the bottom line is always...money? Can you spell ENRON?Most of the world is against globalization. But we are not sure why. We just feel that it is bad somehow. We see life becoming more uncertain, jobs being eliminated, families and societies being torn apart, and "job security" becoming a thing of the past. Meanwhile, the salaries of CEOs zoom into the stratosphere. But it is difficult for the average person to verbalize exactly what is "wrong" with globalization and "free trade". We simply do not have the eagle eye view of the situation. But Mr. Luttwak does.Mr. Luttwak is not against capitalism. But he lays a case that it is out of control and that the "free trade" agenda will only benefit the wealthy. He very eloquently lays out how the pursuit of wealth is now running rampant over borders, governments, cultures, and how wealth is accumulating at a faster pace into the hands of fewer and fewer people. And most important...the cost to all of us "losers" in this frantic "greed rush".The WTO and G8 meetings are held in secret. Those who meet in secret NEVER have the common good at heart. If they did, they would welcome very bright lights so we could all appreciate their great philanthropy and goodness.After reading this book, I know why they meet in secret. I now know who is pushing globalization and why they are doing it. The agenda of globalization is laid bare and yes, it is scary. Imagine one world governed by company interests whose only god is the dollar...that will be the ultimate result of turbo capitalism.While this book is only a call to arms with no solution offered, it is excellent for no other reason than the way in which Mr. Luttwak so deftly lays out the problems. Buy this book. You will not be disappointed.