What is the secret of prosperity? Why are the rich rich and the poor poor? The answer lies in the structure of financial markets and the willingness to allow the capitalist system to let creative destructionwork its wealth-creating wonders.Financial markets are the least understood and most highly criticized part of the capitalist system. The greed of participants involved in scandals like Enron adds fuel to the fire that these markets are a tool of the rich.Powerful interest groups oppose markets, especially financial markets, because markets undermine their power. Winners in the market want to entrench their position and prevent others from breaking through by suppressing markets. Losers would also like to suppress the market because they cannot compete. Saving Capitalism From the Capitalists explores how financial markets free human ingenuity, make nations competitive and are the basis for broadening prosperity.
Raghuram Rajan received his Ph. D. from MIT and has taught at Northwestern University's Kellogg School of Management and MIT in addition to the University of Chicago. He has published in numerous industry publications, as well as the Financial Times. Luigi Zingales also earned his Ph. D. at MIT. In 2000 he won the Journal of Finance's Distinguished Paper Award for his outstanding papers in corporate finance. He is a research associate at the National Bureau of Economic Research.