“America prospered, in large part, because it accepted that destruction is the price for creation. The world’s most liberal bankruptcy laws allowed companies to go out of business. The world’s biggest internal market allowed people to move to places where their skills would be more generously rewarded. The United States accepted that ghost towns and shuttered factories are the price of progress.”
As its title says, Capitalism in America covers the history of the United states with a focus on its economic setting and growth. From the joint stock companies of the English colonists (which they identify as a wholly new invention in a world where mercantilism was taken for granted) to the entrepreneurs of Silicon Valley, Greenspan and Wooldridge lay out the circumstances leading to, the benefits produced by, and the reactions against the free (and at many times not-so-free) market of the United States. I listened to the audiobook version read excellently by Ray Porter.
One of the unifying themes of the book is the necessity of creative destruction for growth. As great as the major leaps of the market were—spurred on by the mutually reinforcing and liberating inventions of like the Lowell Mills, the Bessemer Process, the steam engine, the telegraph, and many others—they meant that investments in previous processes, industries, locations, and jobs were and had to be liquidated, adjusted, or left behind. The authors, thus, also follow the growth of reactionary movements such as the populist Grange Movement and the unionization and regulation of the Progressives—all the while citing the benefits and, more often than not, economic drawbacks and ironies of such things.
However, being a general history, the book does not focus only on the turn of the 19th – 20th century (though the surrounding events and precedents set the stage for later discussion). Honestly elaborating on the dreadful economic impact of plans like the New Deal, the authors nonetheless lay out the social and presidential merits of actions by presidents like FDR to slow or stave off the destructive elements of the market (and give that president, perhaps, more credit than one might expect, or is due). The authors also go through the rest of the 20th century and early 21st, describing the relative economic plans of the Cold War and post-Cold War presidents, which many times diverged from their respective executive’s party affiliation or persona. The book ends at 2019, noting the various economic benefits of President Trump’s deregulation agenda, as well as the looming effects of his administration’s declining to cut entitlement spending. While the fact that the authors could not foresee the sudden economic downturn caused by the 2020 lockdowns, etc, or the inflation of the 2020-2024 administration lends a bit of irony to the final chapters, such events do fit within the book’s final prediction of recession, as well as within the broader themes of economic cycles.
As an AP US History teacher, I plan to recommend this book to my students, if not use it in class. Besides some parts which discuss elements of market economics (e.g. when the 2008 mortgage loan bubble is discussed), the book is clear enough in its language and consistent enough with its themes to be readable by non-economists (and even those aforementioned parts are manageable and made clear within context). While Greenspan takes a generally conservative view of America’s economic history, he is, nonetheless, quite even-handed in his treatment, which may be what some readers are looking for. I was tempted to give four stars because of a few minor gripes, but I decided those were due to my own differing views on some of the book’s topics and not due to any deficiency in the book, itself.