Posts tagged with: capital

Blog author: jsunde
Thursday, December 10, 2015

elvesIn “The Elves and the Shoemaker,” the famous fairy tale by the Brothers Grimm, a cobbler and his wife struggle to survive, barely making enough to eat (never mind investing in the future of their business).

One morning, however, they wake to find that their last scraps of leather have been turned into a remarkable pair of shoes. Not knowing the source of such craftsmanship — and apparently incurious — the cobbler sells them off at a higher price, gaining new capital to grow his business. Each night thereafter, the miracle continues, and the enterprise grows in turn.

Months later, they finally take an interest in the source of such help, staying awake through the night to spot two naked elves, each happily laboring to make more shoes. The wife sews clothes for the elves, who, after finishing their work, express their thanks and graciously depart, never to be seen again.

One can find several morals or lessons in the tale, but Jeffrey Tucker does a marvelous job of highlighting its themes on the meaning of work, the gift of exchange, and the glories of capitalism. (more…)

industrial-revolution-1024x665Economist Deirdre McCloskey is set to release the long-anticipated conclusion of the Bourgeois Era trilogy sometime next spring.

The book, Bourgeois Equality: How Ideas, Not Capital or Institutions, Enriched the World, will build on her thesis that our newfound prosperity is not primarily due to systems, tools, or materials, but the ideas and rhetoric behind them.

“The Great Enrichment, in short, came out of a novel, pro-bourgeois, and anti-statist rhetoric that enriched the world,” she writes, in a lengthy teaser for National Review. “It is, as Adam Smith said, ‘allowing every man [and woman, dear] to pursue his own interest his own way, upon the liberal plan of equality, liberty, and justice.’”

In an age where the Left continues to make age-old Marxian arguments about the destructive ju-ju of accumulated wealth, and where the Right is increasingly prone to react on those same grounds, McCloskey reminds us that the premises are entirely different. (more…)

“Globalization must do more than connect elites and big businesses that have the legal means to expand their markets, create capital, and increase their wealth.” –Hernando de Soto

6898950_7a0fd3b3d9_bWhen assessing the causes of the recent boom in global prosperity, economists and analysts will point much of their praise to the power of free trade and globalization, and rightly so.

But while these are important drivers, we mustn’t forget that many people remain disconnected from networks of productivity and “circles of exchange.” Despite wonderful expansions in international free trade, much of this has occurred between “outsiders,” with many partners still languishing due to a lack of internal free trade within their countries.

Much of this is due to an absence of basic property rights, as economist Hernando de Soto argues throughout his popular book, The Mystery of Capital. If the global poor don’t have the legal means or incentives to trade beyond families and small communities, so-called “globalization” will still leave plenty behind. (more…)

The 2015 Acton Lecture Series got off to a rousing start last week with the arrival of Jeffrey Tucker, Chief Liberty Officer of, to deliver the first lecture of this year’s series, entitled “Capitalism Is About Love.” If you go by the conventional wisdom, that seems to be a counterintuitive statement. Jeffrey Tucker explains how the two are actually bound up together.

You can watch the lecture via the video player below, and if you haven’t had a chance to hear the Radio Free Acton interview with Tucker, I’ve included it after the jump.


Blog author: jsunde
Monday, October 13, 2014

capterrorismThe Middle East is enduring yet another wave of terror and political change, spurring countless Western analysts and elites to offer their preferred strategies and solutions, most of which involve military force, foreign aid, or some mixture of the two.

In last weekend’s Wall Street Journal, Peruvian economist Hernando De Soto sets forth a less predictable path, arguing for “an aggressive agenda for economic empowerment,” similar to that which was promoted in Peru during the 1990s.

I know something about this. A generation ago, much of Latin America was in turmoil. By 1990, a Marxist-Leninist terrorist organization called Sendero Luminoso, or Shining Path, had seized control of most of my home country, Peru, where I served as the president’s principal adviser. Fashionable opinion held that the people rebelling were the impoverished or underemployed wage slaves of Latin America, that capitalism couldn’t work outside the West and that Latin cultures didn’t really understand market economics.

The conventional wisdom proved to be wrong, however. Reforms in Peru gave indigenous entrepreneurs and farmers control over their assets and a new, more accessible legal framework in which to run businesses, make contracts and borrow—spurring an unprecedented rise in living standards… Over the next two decades, Peru’s gross national product per capita grew twice as fast as the average in the rest of Latin America, with its middle class growing four times faster.


What are the barriers that prevent the poor from moving into the middle class? One surprising answer, says Megan McArdle, is an excess of social capital.

In the video below, McArdle explains why understanding how social and financial capital function in low-income communities can help us be more effective in helping then poor.

Blog author: jballor
Friday, August 31, 2012

Conference: “Global Commodities: The Material Culture of Early Modern Connections, 1400-1800”

Global History and Culture Centre – University of Warwick – 12-14 December 2012. This International conference held at the Global History and Culture Centre of the University of Warwick seeks to explore how our understanding of early modern global connections changes if we consider the role material culture played in shaping such connections. In what ways did material objects participate in the development of the multiple processes often referred to as ‘globalisation’? How did objects contribute to the construction of such notions as hybridism and cosmopolitanism? What was their role in trade and migration, gifts and diplomacy, encounters and conflict? What kind of geographies did they create in the early modern world? What was their cultural value vis-à-vis their economic value? In short, this conference seeks to explore the ways in which commodities and connections intersected in the early modern world.