''The Politically Incorrect Guide to Capitalism'' is a 2007 book by

Austrian school The Austrian School is a heterodox school of economic thought that advocates strict adherence to methodological individualism, the concept that social phenomena result exclusively from the motivations and actions of individuals. Austrian schoo ...

economist

Robert P. Murphy Robert Patrick Murphy (born May 23, 1976) is an American economist. Murphy is Research Assistant Professor with the Free Market Institute at Texas Tech University. He has been affiliated with Laffer Associates, the Pacific Research Institute, ...

. It is the ninth book in the

Regnery Publishing Regnery Publishing is a politically conservative book publisher based in Washington, D.C. The company was founded by Henry Regnery in 1947, and is now a division of radio broadcaster Salem Media Group. It is led by President & Publisher Thomas ...

'' The Politically Incorrect Guides'' (P.I.G.) series. Written as a result of a poll by P.I.G. readersThe Politically Incorrect Votes Are In
/ref> that stated a book on

economics Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics analyzes ...

, ''The Politically Incorrect Guide to Capitalism'' aims to refute what it sees as common misconceptions resulting from

Keynesian economics Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output a ...

about what

capitalism Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, priva ...

actually is. ''The Politically Incorrect Guide to Capitalism'' argues against criticisms of capitalism, amongst which are: * it causes ecological destruction * it causes vast

income inequality There are wide varieties of economic inequality, most notably income inequality measured using the distribution of income (the amount of money people are paid) and wealth inequality measured using the distribution of wealth (the amount of we ...

, as well as

racism Racism is the belief that groups of humans possess different behavioral traits corresponding to inherited attributes and can be divided based on the superiority of one race over another. It may also mean prejudice, discrimination, or antagonis ...

* it causes an unpredictable boom and bust cycle Instead, Murphy argues that they result from government efforts to regulate the free market that have the effect of distorting

laissez-faire ''Laissez-faire'' ( ; from french: laissez faire , ) is an economic system in which transactions between private groups of people are free from any form of economic interventionism (such as subsidies) deriving from special interest groups ...

supply and demand that would encourage the most rational allocation of resources possible, as well as their conservation for

future generations Future generations are cohorts of hypothetical people not yet born. Future generations are contrasted with current and past generations, and evoked in order to encourage thinking about intergenerational equity. The moral patienthood of future g ...

. For example, with endangered species such as rhinos it is argued that if they were freely traded those who used their parts would have a stake in maintaining supply and conservation would improve (page 49). It is likewise argued that antitrust laws are unnecessary and that the " robber barons" actually benefited the US' poor much more than any government aid has ever done.

Notes and references

Further reading