Saving Capitalism by Robert B. Reich Summary

Saving Capitalism critiques the myth of a "free market," arguing that government-created rules shape capitalism’s outcomes, often favoring the wealthy. Robert Reich analyzes systemic inequality, corporate power, and the erosion of middle-class prosperity, advocating for policy reforms to redistribute economic power. The book focuses on five pillars of capitalism—property, monopoly, contracts, bankruptcy, and enforcement—to demonstrate how laws can be redesigned to benefit the majority.

This book is ideal for readers interested in economic policy, social justice, or political reform. Policymakers, activists, and students of economics will find Reich’s analysis of corporate influence and regulatory frameworks particularly valuable. It’s also accessible to general audiences seeking to understand wage stagnation, wealth concentration, and the role of government in market systems.

Yes—the book is praised for its clear explanation of complex economic concepts and its compelling case for rebalancing power. While some critics desire more detailed policy solutions, Reich’s historical context and data-driven arguments make it a vital read for those concerned about inequality and democracy. Its blend of academic rigor and readability has earned widespread acclaim.

Reich identifies property rights, monopoly laws, contractual agreements, bankruptcy rules, and enforcement mechanisms as capitalism’s foundational pillars. He argues these aren’t neutral but are shaped by political power, often advantaging corporations and the wealthy. For example, bankruptcy laws favoring corporations over individuals exemplify systemic bias.

The book traces rising inequality to policy choices, such as weakened antitrust enforcement and tax cuts for the wealthy. Reich highlights stagnating wages, skyrocketing CEO pay (up 930% since 1978), and corporate lobbying as drivers of disparity. He proposes strengthening labor unions, campaign finance reform, and progressive taxation to counterbalance concentrated wealth.

Reich rejects the "free market vs. government" dichotomy, stressing that all markets rely on government-made rules. He argues the real debate is about whose interests those rules serve—whether they protect monopolies, enable wage suppression, or safeguard consumers. Examples include patent laws favoring Big Pharma and deregulation enabling financial crises.

Reich demonstrates how corporations influence legislation to entrench dominance, such as lobbying for tax loopholes or opposing antitrust measures. He critiques CEO pay structures tied to stock prices, which incentivize short-term gains over worker welfare. This "upward pre-distribution" redirects wealth from employees to executives and shareholders.

Key reforms include:

• Reviving antitrust enforcement to break up monopolies
• Raising minimum wages and strengthening collective bargaining
• Closing tax loopholes for corporations and the ultra-wealthy
• Publicly financing elections to reduce corporate lobbying influence

Reich argues these changes would create a more inclusive economy.

Unlike Thomas Piketty’s Capital, which focuses on wealth trends, Reich emphasizes actionable policy solutions. It shares ground with Joseph Stiglitz’s critiques of corporate capture but stands out for its accessible prose and focus on middle-class stagnation. The book’s systemic lens complements Anand Giridharadas’ Winners Take All.

Some economists argue Reich underestimates globalization’s role in wage stagnation or oversimplifies regulatory trade-offs. Critics also note his solutions rely heavily on political will, which may be unrealistic in polarized environments. However, most agree the book effectively exposes structural flaws in modern capitalism.

With AI disrupting labor markets and wealth inequality at historic highs, Reich’s analysis of power imbalances remains urgent. The book’s framework helps readers evaluate current debates about gig worker rights, tech monopolies, and climate policy through the lens of who benefits from economic rules.

As a former U.S. Secretary of Labor (1993–1997) and academic, Reich combines policy experience with scholarly rigor. His government insider perspective enriches discussions of lobbying and regulatory capture, while his accessible teaching style makes complex ideas approachable.