Allan Meltzer's Why Capitalism

Mohamed Awale

Summary Paper 1- Why Capitalism

Allan H. Meltzer

In this insightful and quiet depressing analysis of capitalism and human desire, Allan Meltzer unveils the nuts and bolts of the institutions that run our daily lives. He starts our tour by channeling the voices of the opponents of capitalism. He recites their dismal view of they system, about how it’ll surely fall. They cite the Great Recession and other public mishaps that have occurred under the not so watchful eyes of capitalism. However, with all its short comings, Meltzer doesn’t fail to mention it’s successes. Such as capitalism’s tendency to ignite intellectual dissent and cultivate a culture of innovation through rigorous competition. Then again, Meltzer doesn’t go

In his text Meltzer references the Great German thinker Immanuel Kant. Meltzer quotes “Out of timber so crooked as that from which man is made, nothing entirely straight can be carved.” ( Why Capitalism? 5). If the meaning is not clear as day after first reading it, Meltzer adds “ Everyone is not honest, a point reinforced by periodic scandals.” ( Why Capitalism? 5). Corruption is so abundant in capitalism, its almost written in stone. Meltzer uses incidents like the Bernard Madoff ponzi scheme or the Enron scandal as proof. Our one way of combating these incidents is by establishing regulations and rules, however it doesn’t work. Meltzer explains that “Regulation to achieve social objectives has two major problems. The first law of regulation says that lawyers and bureaucrats develop regulations, but markets learn how to circumvent those that cost them money. The second says that the results of regulation often differ from the regulations’s goal or plan,” (Why Capitalism 11). Meltzer goes to write about how some companies pay to preserve some regulations that cut down their competition. One can see why these incidents can change ones mind about capitalism being an all inclusive system that brings an equal happiness. Well, the question is what is happiness and what is that system that can bring not just one’s but a whole’s