I read the whole book. You can also read it here: http://www.yalepresswiki.org/w/index.php?title=Good_Capitalism,_Bad_Capitalism -Real world types of Capitalism. Their pros and cons. The most important part is Chapter 4. I encourage you to read it. Aside from this there are also different types of economic systems. Dont rush to proclaim one type of capitalism over another, all have worked at different times in history and under special circumstances.
From the book (Chp 4): "To summarize, entrepreneurial capitalism is the system we believe is most conducive to radical innovation." _____________________________________________ This is the reason I keep pushing the FairTax (FairTax.org). Bring in the FairTax with it's ZERO Corporate Tax & ZERO Income Tax and we would create not only the #1 Tax Haven on the entire planet, which would bring back 8 $Trillion of overseas American money, but also give every small entrepreneur more incentive to pursue their innovative entrepreneurial dreams to their fullest. Combine this with one day actually getting the budget under control and we'd virtually assure ourselves of staying the #1 economy for the next 100 years. Unfortunately, right now we have a Pres that is an anti-capitalist.
Who would pay the taxes then? If this is just a call for a consumption tax, i can tell you what will happen. The prices of the goods and services that can be taxed would go through the roof as they would need to provide 2+ trillion more dollars in tax money. People would then stop buying all but the bare necessities as everything costs too much. People would " innovate" by growing their own foods and living off the land as much as possible. As the tax burden shifted from people with the marginal money above living expenses to pay more taxes to people who were just barely making ends meet, the gov't social programs, many adjusted for inflation, would have to increase their spending dramatically. This would result in much more inflation and debt than we have now. The reason our tax system works to the extent it does is because people who have gained the most pay the most taxes, as it should be.
"The 19th century belonged to England, the 20th century belonged to the US, and the 21st century belongs to China. Invest accordingly." --- Warren Buffet Commies over the frauds (capitalists) for the next 100 years. Easy money.
The same people that pay the taxes now would pay the taxes under the FairTax, as well as, people visiting the U.S. and people that are currently being paid cash (ie laborers). Twenty-two million spent on researching the FairTax says prices will be roughly the same.
There is a simple (and old) answer to your question. It's due to an old american economist, Henry George. You can read his 1879 masterpiece Progess and Poverty here: http://www.econlib.org/library/YPDBooks/George/grgPP.html (or take the express route at http://www.dollarsandsense.org/archives/2006/0306gluckman.html or wikipedia, but losing a lot, IMO). Even if I do not believe his approch should be considered alone (Silvio Gesell thought IMHO should be merged with his), it's one of the best books I ever read, and surely made me understood a lot more than most economic books I read.