Readers United Book Reviews | Saving Capitalism and The Economist Guide to Financial Markets

In this installment, Imad Rizvi ’18 returns with two informative books that center around politics and economics.

Saving Capitalism by Robert Reich

In his book Saving Capitalism, Robert Reich provides strategies for reversing a dangerous trend that has accelerated rapidly in the past few decades: increasing income inequality in the United States. Reich makes a strong argument for the need for reform to ensure improving conditions for all Americans rather than an elite few. Reich argues for redefining the traditional debate between liberals and conservatives about the “size” of government and focusing instead on changing many of the rules that regulate interactions between workers and big corporations.

Reich begins by analyzing some of the trends in the last few decades that have led us to a situation where the wealthiest 1% of Americans own more than 20% of the country’s income. He focuses on the rise of the working power, the declining middle class, and the rise of the nonworking rich. Once he exposes how these trends have led to difficulties for millions of American workers, Reich argues that the problem isn’t the system of capitalism as a whole: rather, that the rules of the system have been dictated by a select few who have shaped regulation towards their own benefits. Through clear data, evidence, and analysis, he is able to show how regulation of businesses has been largely ineffective in preventing the drastic rise in inequality, using a few case studies to support his point with specific examples.

At the end of the book, Reich suggests a few mechanisms and policies — such as a universal basic income — that could be used to ensure economic prosperity for all Americans. Well-researched, interesting, and informative, Reich’s book is a great read for any progressive interested in hearing opinions on how to promote equal opportunities for all.

Verdict: I would recommend this book to anybody interested in politics or economics.



The Economist Guide to Financial Markets: Why They Exist and How They Work by Marc Levinson

For anybody with an interest in economics and finance, The Economist Guide to Financial Markets: Why They Exist and How They Work offers a quick introduction on these topics. The book provides an in-depth overview of the functions and operations of major financial markets and institutions. From topics ranging from the stock market to international currency exchanges, this book is a useful tool to grasp basic topics in finance. 

While it can be difficult to understand some of the concepts presented in the book, the use of data, graphs, and specific examples help simplify many complex ideas. 
The book is useful as a reference for anybody who wants background information on different financial markets. It is divided into different chapters and sections for each market that is discussed, including money markets, foreign-exchange markets, stock markets, and future and option markets. The book can definitely be dull and difficult to understand at times, but only because it has to explain complex information in a way that is easy to understand for people seeking an introduction to the field. The book is very informative, and the use of data and examples makes it easier to understand how many of the financial instruments that are discussed work.

Overall, this book definitely offers a broad but thorough introduction to some of the most important financial markets. The book is effective in providing a clear and comprehensive summary to help provide a basic understanding of the functions of many different financial institutions.


Verdict: While it may be difficult to understand without some background knowledge in finance, I would recommend this book to anybody interested in learning more about the field.