The Mystery Of Capital By Hernando Desoto Essay - 1836 Words

INTRODUCTION â€Å"Capitalism is a social system based on the recognition of individual rights, including property rights, in which all property is privately owned† (Ayn Rand). The utilization of capitalism alongside of various other economic principles allows society as a whole to create prosperity. â€Å"Economically, when such freedom is applied to the sphere of production its result is the free-market† (Capitalism.org). It should make sense that societies who have capitalist values automatically experience the prosperity and freedom that Milton Friedman describes; however, this is not always the case. Oppressive governments while do hold capitalist systems limits the rights of their individuals. In eliminating specialization and comparative advantage governments are hurt. Hernando De Soto argues that there are multiple factors that contribute to wealth creation and McGregor exemplifies this point with descriptions of communist Chinese governments which show the aspects of their governments which are not capitalist. Section 1 In The Mystery of Capital by Hernando Desoto argues that for a capitalist economy to produce to wealth they need something else. The something else is capital. According to Desoto capital is a â€Å"part of a country’s assets that initiates surplus produces and increases productivity† (41). Desoto continues to give accounts of famous economists and their view on capital. For example, Adam smith argued that capital was in charge of the exchange of products in theShow MoreRelatedThe Mystery Of Capital By Richard Mcgregor1605 Words   |  7 Pagesaround the world. Yet Hernando DeSoto author of The Mystery of Capital conveys the idea that the markets in other countries around the world are different because of the system that each set country has. For example a country with a government that keeps â€Å"their peoples and nations in hopeless poverty† and nothing can help unless they change the way the run the country. Richard McGregor author of The Party: the Secret World of Chinas Communist Rulers speaks more in depth of what DeSoto stated that if aRead MoreEconomic Growth And Its Implementation1740 Words   |  7 PagesTannous California State University Northridge INTRODUCTION According to capitalist ideals, free markets combined with a limited government will result in growth, freedom, and a prosperous economy. The Mystery of Capital outlines the importance of capitalism in economic prosperity, but Hernando DeSoto explains that capitalism alone is not enough, we also need to look at something else that allowed the West to prosper under capitalism. Richard McGregor, in The Party: The Secret World of China’s Communist