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j"19HxigV4QyBv3tHpQVcUEQyq1pzZVdoAutM2Book Review: George Gilder's 'Life After Capitalism' • The author recounts a lunch with Jim Fitzgerald from Banknote Capital, who believes that joy in work is a stronger motivator than lower tax rates for increased productivity. • Fitzgerald challenges the conventional view that low tax rates are necessary to stimulate work, arguing that successful entrepreneurs like Jeff Bezos and Mark Zuckerberg are driven by passion rather than tax incentives. • The author reflects on George Gilder's "Life After Capitalism," which critiques traditional supply-side economics and asserts that wealth is linked to knowledge creation rather than just tax rates. • Gilder posits that innovators do not consider tax rates when starting businesses, as their motivation is rooted in the desire to create and discover new information. • The text critiques Keynesian economics for promoting government spending and redistribution, claiming these practices hinder knowledge creation and economic growth. • Gilder argues that true wealth arises from knowledge and innovation, while government spending often misallocates resources, stifling progress and new ideas. • The author emphasizes the importance of capital for entrepreneurs, noting that high taxes and government spending limit funds available for innovation and startups, slowing economic growth. • Gilder critiques government influence on economic practices, suggesting that an emphasis on "settled science" restricts innovation and the pursuit of unexpected discoveries. • The text discusses historical economic policies, particularly criticizing Milton Friedman’s monetarism for its central planning approach, which the author believes undermines market dynamics. • The author concludes that government intervention and flawed monetary policies have stifled economic progress, resulting in a less advanced society. • Wealth creation diminishes during inflation due to money devaluation, leading to a focus on protecting existing wealth rather than investing in new knowledge. • Time is a key driver of progress, and the Federal Reserve cannot manipulate time or credit to stimulate growth; true advancement relies on individual learning and productivity. • Gilder emphasizes viewing money as a measure of time spent working, noting that the time price of goods has significantly decreased over the years. • The division of labor enhances productivity, as shown by Adam Smith, and population growth increases global resources, demonstrating that humans contribute positively to economic progress. • Acquiring knowledge involves unlearning outdated concepts, as the pace of commerce often exceeds the education system's ability to adapt. • Gilder argues against the belief that wealth must be materially embodied, asserting that mental wealth can surpass physical wealth, as evidenced by the economic boom of the 1980s and 90s. • The decline of the dollar under George W. Bush led to rising prices for commodities like gold and oil, illustrating the negative effects of weak dollar policies on economic growth. • Gilder contrasts the idea that abundance harms the earth with the reality of economic dynamism and the benefits of free trade, especially in energy resources. • While acknowledging the negative effects of excessive currency trading, Gilder notes that banks prioritize financing enterprises over short-term trading activities. • The book encourages a reevaluation of economic growth, advocating for a focus on knowledge economics, reduced government consumption, and zero taxes on investment as essential for progress. text/markdownUTF-8
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