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Two Cheers for Capitalism?

  • Symposium: Peter Berger’s Achievement in Social Science
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Abstract

According to a popular view that I call “two cheers for capitalism,” capitalism’s effect on development is ambiguous and mixed. This paper empirically investigates that view. I find that it’s wrong. Citizens in countries that became more capitalist over the last quarter century became wealthier, healthier, more educated, and politically freer. Citizens in countries that became significantly less capitalist over this period endured stagnating income, shortening life spans, smaller gains in education, and increasingly oppressive political regimes. The data unequivocally evidence capitalism’s superiority for development. Full-force cheerleading for capitalism is well deserved and three cheers are in order instead of two.

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Further Reading

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  • Leeson, P. T. 2008b. Media freedom, political knowledge, and participation. Journal of Economic Perspectives, 22, 155–169.

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  • Smith, A. 1904 [1776]. An inquiry into the nature and causes of the wealth of nations, E. Cannan (Ed.), (5th ed.). London: Methuen.

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Acknowledgements

I thank Pete Boettke and Chris Coyne for comments and suggestions. The financial support of the Fund for the Study of Spontaneous Orders and the Mercatus Center at George Mason University is also gratefully acknowledged.

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Authors and Affiliations

  1. Becker Center on Chicago Price Theory, Booth School of Business, University of Chicago, 5807 S. Woodlawn, Ave., Chicago, IL, 60637, USA

    Peter T. Leeson

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  1. Peter T. Leeson
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Correspondence to Peter T. Leeson.

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Leeson, P.T. Two Cheers for Capitalism?. Soc 47, 227–233 (2010). https://doi.org/10.1007/s12115-010-9305-7

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  • DOI: https://doi.org/10.1007/s12115-010-9305-7

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