By Peter Nguyen
The book The Death of Capital, by Michael Lewitt, is worth reading if you wish to understand the 2008 financial crisis whose impact is felt even today.
A review of the book can be found here:
One insight I got from Lewitt is that that capital is both “money and commodity.”
In other words, it has “exchange value” as well as “use value.”
Lewitt also defines “capital” as being:
- a Process
- Shape-shifting (it changes it forms, like a chameleon)
- a construct of the Human mind
(The acronym P.U.S.H. will help you remember the above).
Although there’s no doubt his book is a very erudite one, he doesn’t explain capitalism or capital as well as the brilliant Peruvian economist Hernando de Soto in his little book The Mystery of Capital (I will write a review on it shortly).