Book Review: 23 Things They Don’t Tell You About Capitalism by Ha-Joon Chang

 Ha-Joon Chang’s 23 Things They Don’t Tell You About Capitalism is a provocative critique of free-market orthodoxy that seeks to challenge commonly held beliefs about capitalism. Written in an accessible and engaging style, the book presents a series of short chapters, each dedicated to debunking a particular myth or misconception about how capitalism functions. While Chang offers valuable insights, his analysis is not without its limitations.

Strengths of the Book

One of the greatest strengths of 23 Things They Don’t Tell You About Capitalism is its accessibility. Chang avoids technical jargon, making his arguments digestible for a general audience. The book serves as an excellent introduction to economic heterodoxy, offering a counterbalance to dominant neoliberal narratives. He effectively employs historical examples to demonstrate that free-market capitalism is neither as natural nor as efficient as its proponents claim.

Chang’s argument that markets are always shaped by rules and regulations, rather than existing in a natural state of laissez-faire equilibrium, is a particularly strong point. He effectively critiques the idea that “free markets” are inherently superior by showing how governments and institutions have played crucial roles in economic development, particularly in East Asian economies like South Korea. He also highlights the flaws of excessive financialization, pointing out how deregulated markets can lead to crises rather than stability.

Critiques and Limitations

Despite its strengths, 23 Things suffers from some significant weaknesses. First, while Chang is adept at dismantling free-market dogma, he offers little in the way of a coherent alternative. His endorsement of a more interventionist, state-led approach is clear, but he does not provide a systematic model or framework for what this should look like in practice. His historical examples, while compelling, are often cherry-picked to support his thesis, and he sometimes downplays the negative effects of state intervention.

Another key issue is that Chang often criticizes capitalism without fully addressing its successes. While he rightly points out the inefficiencies and injustices within free-market systems, he sometimes neglects to engage with counterarguments that highlight capitalism’s capacity for innovation, poverty reduction, and economic growth. For instance, while critiquing the notion that making the rich richer benefits the poor, he does not fully grapple with the complexities of wealth creation and distribution.

Moreover, Chang’s analysis can occasionally be overly deterministic. His emphasis on historical examples from East Asia may not always be applicable to different cultural and institutional contexts. Policies that worked in South Korea or Japan may not necessarily yield the same results in the UK or the US. Additionally, his skepticism toward financial markets, while justified in many respects, risks oversimplifying their role in economic development and investment.

Conclusion

23 Things They Don’t Tell You About Capitalism is a valuable and thought-provoking book that challenges conventional wisdom about markets and economic policy. It provides an important corrective to the idea that free markets are always the best solution. However, its weaknesses lie in its selective use of historical examples, its lack of a clear alternative framework, and its tendency to overlook capitalism’s strengths. Readers interested in a critical perspective on free-market ideology will find much to appreciate in Chang’s work, but they should also engage with other economic perspectives to develop a more well-rounded understanding of capitalism’s complexities.