2.  Introduction
 What is Capitalism?
 Capitalist Principles
 Myths about Capitalism
 Economic Crises / Crises of Capitalism
 Future of Capitalism?

4.  Private Property
 Freedom of Contract
 Rule of Law
 Use of Reason
 Personal Liberty
 Voluntary exchange of Goods: Free Trade
 Democracy

5.  Protect Man’s Rights
 Put this Retaliatory Force under Objective
Control

6.  Freedom
 Equality
 Individualism
 Democracy
 Personal Property
 Laissez-Faire

7.  Rule of Law
◦ Transaction costs
◦ Lower Number of Business Deals
◦ Expenses to Verify your Business Partners
 Independent Judiciary
◦ High degree of Trust in Legal System
 Common Law vs. Civil Law (Just vs. Legal)
◦ Common Law (Singapore, Australia, GBR)
 Foreign Corrupt Practices Act
◦ Influences also business environment in the U.S.

8.  European Emigrants to the US
 Hard Working
 Entrepreneurial (BANKRUPTCIES)
 Rule of Law
 Can Do/Optimism Mentality
 American Dream
 Protestantism vs. Catholicism
 Religion (U.S. 94%, Italy 88%, France 56%, Germany
50%)

9.  Conservatives (C) vs. Liberals (L) debate:
 Capitalism works with values (C)
 Winners must take care of Losers (L)
 Forced help hurts everybody (C)
 Redistribution and Regulation (L)
 Redistribution discourages winners from
producing and losers from trying (C)

10.  Public Opinions (2002-2004)
 Welfare State vs. Freedom of Individual
◦ U.S. 34/58, GER 57/39, FRA 62/36, IT 71/24
 Success in Life: External Forces vs. Individual
◦ U.S 32/65, GER 68/31, IT 66/31, FRA 54/44
 Economic Competition is Positive
◦ U.S. 58, Germany 49, Italy 42, France 36

11.  Very Satisfied with Their Lives (2002-2003,%)
◦ U.S. 57, Italy 16, France 14, Germany 18
 Life has improved in the last 5 years
◦ U.S. 49, Italy 42, France 35, Germany 22
 Life will improve in the last 5 years
◦ U.S. 64, Italy 53, France 41, Germany 20

12.  Value of Free Time
◦ Europe vs. America
◦ Protestantism (Work is Blessing and Source of
Happiness given by God)
◦ Opportunity to get rich in the U.S. is higher
 Children should Learn Hard Work
◦ U.S. 60, France 50, Italy 36, Germany 22

13.  R&D Expenditures (GDP%)
◦ U.S. 2.67, France 2.2%, Germany 2.51%, Italy 1.07%
 Growth in Production high-tech goods
(2003)
◦ U.S. +419, France +242, Germany +52, Italy +69
◦ Data in %

14.  Employment
◦ U.S. (1970-2003) +58.9 million
◦ France, Germany, Italy + 17.6 million
 Real GDP per Capita (PPP, 2002)
◦ U.S. 34,000 USD
◦ France 24,000 USD
◦ Italy 25,000 USD
 Labor Productivity
◦ U.S. (1996–2003) +3.09%
◦ Germany (1996-2003) +1.6%

15.  American Capitalism is Very Positive (%)
◦ Italy 39 / 43
◦ Germany 32 / 58
◦ France 23 / 73
◦ Slovakia 52 / 40
◦ Ukraine 58 / 23
◦ Uzbekistan 76 / 11
◦ Former Communist Countries more Positive

16.  2010 Index of Economic Freedom
◦ 1. Hong Kong, 2. Singapore, 3. Australia, 8. U.S.,
23. Germany, 64. France, 74. Italy
 Economic Freedom of the World 2008
◦ 1. Hong Kong, 2. Singapore, 3. new Zealand, 6.
U.S., 24. Germany, 35. France, 66. Italy
 World Bank Doing Business 2010
◦ 1.Singapore, 2.New Zealand 3. Hong Kong 4. U.S.
25. Germany, 31. France, 78. Italy

17.  China Model - Free Market with Government
Intervention Prevented Crises
 Government Complete Control of Investments
and Currency (Short Term Victory)
 Corruption
 Imbalances in Economy
 Jimmy Lai: “System in China is Long-Term
Unsustainable and will Collapse”

18.  Selfish – but results in cooperation
 Greedy – but increased standard of living
 Nationalistic – but U.S. multiethnic society
 Cruel – but gives hope
 Source:
◦ Ayn Rand: Capitalism-The Unknown Ideal

19.  Role of Government
 Moral Consequences of Economic Growth
◦ Prosperity, Happiness, Rule of Law
◦ Winners and Losers
 Capitalism is Amoral
“NO SYSTEM CAN SURVIVE / FUNCTION
WITHOUT MORAL/ETHICAL VALUES”

20.  2 different types of Legal Systems?
 Country with most positive American
Capitalism opinions?
 What is ranking of U.S. according to Doing
Business 2010?