The Free-Market Innovation Machine: Analyzing the Growth Miracle of Capitalism - Paperbackby William J. Baumol (Author) Why has capitalism produced economic growth that so vastly dwarfs the growth record of other economic systems, past and present? Why have living standards in countries from America to Germany to Japan risen exponentially over the past century? William Baumol rejects the conventional view that capitalism benefits society through price competition that is, products and services become less costly as firms vie for consumers.