Friday, February 19, 2021

Americana, Bhu Srinivasan, 2017

Rating: 5/5

Americana is a fascinating look into the various capitalistic ventures in America’s history, ranging from tobacco, cotton, and gold to slavery and from various industries to the American way of life. And in all of this, there’s a common thread, first voiced  by Adam Smith — despite the risk of total loss, money finds its way to opportunity when the potential rewards are high enough. For a non-American like me, the nuances and origins of many of these were extremely interesting, especially factors such as slavery or anti-completive behaviour, which are clearly to be hated now but have played a role in America’s progress.

In all of this, it is interesting to see how history repeats itself. The formation of “trusts” to overcome laws against pricing collusion and the government’s battles against them in the nineteenth century seems to have its echoes even now. The concept of venture or risk capital used to finance the first shipload of passengers to America came back after 350 years to fund technology companies. Or corporate America’s tendency to latch on to investor fads have remained unchanged from the time pointless trusts were formed to the time when existing companies rechristened themselves as “dotcoms” towards the end of the last century.

Given the vast number of topics covered, there may be an element of superficiality in their coverage but Srinivasan’s focus is more on making it comprehensive rather than detailed. His writing is pacy and interesting which makes the 500+ page length quite easy to read. He makes an attempt at humour as well, as when he sardonically explains the movie Pretty Woman away by saying that it is entirely plausible that a call girl could serve as the moral compass for a financier!

A bonus is the presence of several interesting factoids through the book. For example, slaves formed the single biggest asset class around 1850 with an estimated value of US$2.8 billion at that time. Or the origin of the term, “$300 man” is from the Civil War where rich men could pay that amount for a substitute to take their place. Or that the Remington typewriter is probably what facilitated women into the white-collared working class!

Pros: A comprehensive look into nearly all of America’s capitalistic ventures, pacy and interesting

Cons: Some superficiality in the coverage of topics



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