Capitalism today is under attack and few defend it with as much efficiency and enthusiasm as Johan Norberg in his latest book, The Capitalist Manifesto. Norberg, who wrote 20 years ago In defense of globalizationbegins his new book by recounting the ups and downs of globalization over these two decades.

After the financial crisis centered on Wall Street, the rise of populism on both the left and the right in several first world countries, the COVID-19 pandemic, the war in Ukraine and now another in the Middle East, it seems like it’s been a terrible 20 years. Reflecting on these events, that is certainly the case. But Norberg adds, “Still, in terms of human well-being, these have been the best 20 years in human history. Extreme poverty was reduced by 70 percent. That means we’ve gotten 138,000 more arguments for global capitalism every day since I wrote my first defense. That’s the number of people who escaped poverty every day during these two decades: 138,000 men, women and children. Every day. Despite all these shocks and obstacles and despite all the setbacks during the pandemic. That’s progress worth fighting for.”

In the first chapter, Norberg describes how life developed under so-called “savage capitalism,” based on numerous indicators of human well-being. In the second chapter, he explains a very poorly understood characteristic of the system of global capitalism: it puts us at the service of others, encourages us to cooperate with other people, even complete strangers or those with whom we share little. Norberg says, “There’s a reason why it’s so unfortunate that some on the left say capitalism is racist and racism is capitalist. On the contrary, the market economy is the first economic system that makes colorblindness profitable.”

The third chapter deals with the criticism of nationalist populism in the US, which claims that free trade has harmed the middle and lower classes in that country. Norberg points out that it’s not that the middle class has shrunk because many workers have been pushed toward lower income levels, but the other way around: they’ve moved toward higher income levels. In the fourth chapter, he describes the importance of the role of entrepreneurs in the market economy and discusses income inequality: how does it arise? What effects does it have? He then deals with the fear of large technology companies and points to their fragility in the face of current and potential competition. He also looks at China’s industrial policy and authoritarian development model, which he calls the “paper tiger”.

Towards the end of the book, Norberg focuses on topics that have gained increasing attention: climate change and happiness. The legend says that capitalism is incompatible with the environment and mental health. Norberg points out that there is a strong correlation between development and environmental health. Furthermore, there is a strong correlation between economic freedom and subjective well-being, and this relationship is stronger for those with lower incomes. Without a doubt, this book would make a good Christmas present. (OR)