Life for an Average Han

Han is an average person who wants a decent life. Unfortunately, the life for average people historically was awful. Only with the advent of capitalism have entire countries escaped the Malthusian trap and increased overall living standards. This book tells the story of capitalism’s first 250 years. It starts with definitions: capitalist economies are based on firms and labor markets working in balance with the government, not simplistic notions of free markets. Most economic interactions are still hierarchical, but firms innovate and move technology forward, which is fundamental to economic growth. Capitalism arose when institutions enabled firms to form, produce, innovate, and profit. These profits drove further innovation and disruption of existing production. This cycle of creative destruction created political turmoil and empowered the first capitalist countries to dominate the world. Capitalism led to imperialism, two world wars, and then the Cold War. But it eventually enabled real, steady, and substantial improvements in living standards that have now spread across the globe. Today, new crises have emerged in inequality, financial volatility, and climate change, and a new form of fascism has arisen in response. But the lessons of the history of capitalism point to a hopeful future for Han.