How Capitalism Saved America

May 17, 2004
Don't be misled by this book's subtitle: rather than a work of history, it's a work of ideology cross-dressing as history. Its value lies in its lively polemic rather than its claims to novelty or historical depth. DiLorenzo (The Real Lincoln
) aims to counteract what he believes is the "anticapitalist mentality" among other historians by showing how capitalism has permeated American history since the Pilgrims, how the role of marketplace entrepreneurs has been lost to historical view, and how all government regulation has been injurious to the national welfare. These arguments he presents via brief sketches of some of the major eras of the nation's history. He argues, for example, that the monopolistic robber barons are incorrectly made to stand in for their era's other forgotten great entrepreneurs, and that it wasn't the excesses of the 1920s that caused the Great Depression but rather Herbert Hoover's mild pre-crash attempts at government regulation. What's beguiling is DiLorenzo's single-mindedness. The book ought to prove bracing for those similarly minded and to those of contrary views whose arguments have grown flaccid for want of energetic attack. But the author's notes and bibliography give the game away. There are scarcely any references to works of history. Instead, he cites the great theorists of capitalism, such as Ludwig von Mises and Friedrich Hayek. There's nothing wrong with that, but it leads one to suspect that the book aims less to enrich historical understanding than to score points.

July 1, 2004
In this history of U.S. capitalism, DiLorenzo (economics, Loyola Coll.) argues that capitalism has been key to this nation's development. He explains that the early colonies of Jamestown and Plymouth were failing under communal ownership until they introduced private property and, with it, capitalism to give the colonists the incentive to work harder and ultimately prosper. He goes on to cite numerous examples of government interference that went wrong, claiming, for instance, that California caused its own recent electricity crisis by deregulating the prices utilities paid for electricity while capping what they could charge customers. Throughout, DiLorenzo vehemently attacks the critics of capitalism, arguing that they have either fabricated their evidence or blamed capitalism for something really caused by an interfering government. The text is pretty extreme but consistent and well reasoned, which makes it worth reading. Highly recommended.-Lawrence R. Maxted, Gannon Univ., Erie, PA

Copyright 2004 Library Journal, LLC Used with permission.

June 1, 2004
Extolling free markets and upbraiding government intervention, economist DiLorenzo offers a tour of American economic history that is intended to counter the anticapitalist ideas embedded in best-sellers such as Barbara Ehrenreich's " Nickel and Dimed" (2001) and Michael Moore's " Downsize This!" (1997). While calling these anecdote- and emotion-driven tomes utter economic nonsense, DiLorenzo does acknowledge their influence. Most people, to the extent they understand the principles of free markets, are suspicious of them, citing robber barons, petroleum trusts, and the Great Depression. Inveighing against "myths" that the failures of capitalism were the cause of such historical episodes, DiLorenzo attacks the political response to them as pernicious to consumers, who, he argues, ultimately pay for price controls, regulations, subsidies, and government corporations. To the author's understandable frustration, these types of government intervention accumulate decade after decade, with "political entrepreneurs" almost always overpowering the ability of the market to operate freely. DiLorenzo's presentation challenges widespread beliefs about economic history.(Reprinted with permission of Booklist, copyright 2004, American Library Association.)