Posts tagged with: Economic ideologies

Blog author: jcarter
Thursday, March 31, 2016
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An Ethicist Reads The Art of the Deal
John Paul Rollert , The Atlantic

Donald Trump succumbs to the age-old temptation to see capitalism not as an economic system but a morality play.

Welfare System Is ‘Anti-Work,’ Researchers Say
Mariana Barillas, The Daily Signal

The war on poverty is a war on work, the authors of a new book that criticizes the nation’s welfare system assert.

Again, What Is Economic Freedom?
Jeffrey Tucker, FEE

Quite often when I am interviewed, I get the question: What precisely do you mean by “capitalism”? It’s an excellent question. The great debate among capitalism, fascism, and socialism suffers from a lack of clear language.

Nafta May Have Saved Many Autoworkers’ Jobs
Eduardo Porter, New York Times

There are still more than 800,000 jobs in the American auto sector. And there is a good case to be made that without Nafta, there might not be much left of Detroit at all.

23-VIEW-master675Under the feudalistic societies of old, status was organized through state-enforced hierarchies, leaving little room for the levels of status anxiety we see today.

For us, however, status competition ranges wide and free, leading to multiple manifestations and a whole heap of status signaling.

Such signaling is as old as the free society itself, of course. Whether sending their children to fancy classes and fencing lessons, accumulating ever-expensive luxury goods, or boasting in the labels of their fair trade coffee and the nobility of non-profit activism, aristocrats have always found ways to signal their superiority.

Yet these preferences have shifted over time, the present form of which is carving out its own unique space. In a recent report from the Adam Smith Institute, Prof. Ryan Murphy explores the situation, noting that while past generations were more concerned with “conspicuous consumption” and “keeping up with the Joneses” – chasing faster cars and bigger diamonds – the current pursuit of status has adapted toward “conspicuous authenticity.”

We are now seeing a “new status signaling,” Murphy observes, where society has “moved beyond associating ostentatious displays of wealth with high status,” opting instead for behavior that signifies we are above and beyond such base behavior. (more…)

JMMIt’s a new year, and I’ve had occasion to do some retrospection on various things, including the Journal of Markets & Morality. The Fall 2015 issue is at the printers, and that marks the completion of 18 years of articles, reviews, essays, translations, and controversies. (Subscribe today to get your copy!)

Here are the top 5 most downloaded articles from the JMM website (which went live in 2012):

1) Svetozar Pejovich, “The Effects of the Interaction of Formal and Informal Institutions on Social Stability and Economic Development,” Journal of Markets & Morality 2, no. 2 (Fall 1999): 164-181.

Abstract
The purpose of this paper is to develop a testable theory—the interaction thesis—capable of explaining why there are differences in economic stability and growth rates between various countries; or, stated negatively, why less efficient countries do not duplicate the economic policies of more successful ones. The interaction thesis identifies the interplay of formal and informal rules as a principal factor affecting economic stability and growth rates. Furthermore, the thesis also sheds light on how the method of choosing formal rules is a major circumstance upon which the interplay of formal and informal rules depends.
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sharing“There are solid grounds for believing that the first Christian believers practiced a form of communism and usufruct [i.e., the right to enjoy the use and advantages of another’s property short of the destruction or waste of its substance],” wrote Peter Marshall in Demanding the Impossible: A History of Anarchism. As evidence Marshall cites the second chapter of the book of Acts:

And all who believed were together and had all things in common. And they were selling their possessions and belongings and distributing the proceeds to all, as any had need. And day by day, attending the temple together and breaking bread in their homes, they received their food with glad and generous hearts, praising God and having favor with all the people. (Acts 2:44-47, ESV)

Marshall is (mostly) correct. The early Christians did engage in a form of voluntary usufruct and wealth redistribution. Since then, many Christians have asked why we don’t follow that sort of proto-communist model today. If the economic system was good enough for the apostles, why isn’t it good enough for modern society?

A hint at why the system is not longer used is found in the verse that immediately follows the passage cited above:

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Lake Karachay, Russia, often referred to as the most polluted lake on Earth

Lake Karachay, Russia, often referred to as the most polluted lake on Earth

At The Federalist, a round-table discussion brought up several issues regarding the encyclical, Laudato Si’. A quick reading of the discussion sees several themes emerge: the pope shouldn’t be writing about science, this encyclical comes down too heavily against free markets, and that modernity has much to offer in the way of solving humanity’s many problems.

Now, if free markets and capitalism are really to blame for pollution, it would stand to reason that those would be the countries with the worst ecological problems. That is not the case.

On the contrary, the management of the environment in communist countries has been and continues to be much worse than in capitalist ones. For example, Richard Fuller, president of the environmental non-profit Blacksmith Institute once identified the former Soviet Union as having “by far and away the worst problems…” when it comes to environmental protection and land use.

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lonely-workerWhen it comes to free trade, critics insist that it hurts the American worker — kicking them while they’re down and slowly eroding the communal fabric of mom-and-pops, longstanding trades, and factory towns. Whether it comes from a politician, labor union, or corporate crony, the messaging is always the same: Ignore the long-term positive effects, and focus on the Capitalist’s conquest of the Other.

Trouble is, the basic logic of such thought leads straight back to the Self.

I recently made this point as it pertains to immigration, arguing that such notions of narrow self-preservation give way to our basest instincts and are bad for society as a whole. But it’s worth considering a bit more broadly, as well. For if the point is to defend the Small and the Local for the sake of The Great and Enduring Bubble of American Industry, at what point is this community of workers too big, too specialized, and too diversified for its own countrymen?

At what point are the Texans getting “unfair” growth compared to the Californians, or the Californians compared to the Oklahomians? If this is all as dim and zero-sum as we’re led to believe, what must we do to prevent our fellow productive citizens from harming their fellow countrymen via innovation and hard work? What bleak, self-centered reality dwells at the end of such logic? (more…)

Blog author: dpahman
Wednesday, August 20, 2014
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Reading through the German economist Walter Eucken’s work The Foundation of Economics (1951), I came across one of the most helpful charts for economic analysis I have yet to find. In it, Eucken gives every possible form of market in a single table:

Eucken Chart

The Foundation of Economics, p. 158

Eucken adds four qualifications that are important to keep in mind:

  1. “These forms of market are actual forms which have been or are to be found in actual economic life (often blended with one another, and existing alongside the forms of a centrally directed economy). They are not given a priori. They are discovered with their distinguishing characteristics by studying the planning data of those taking part in the market….”
  2. “Under each particular form of market a man can act according to different principles, for example, that of maximum net receipts or that of optimum output….”
  3. “Each of these forms of market can appear in four types: both open, both closed, or closed on either side only.”
  4. “Fixing of prices by the state occupies a special position, since it can follow any form of market and has different effects accordingly…. For example, the significance of coal prices being fixed by the state varies according to whether perfectly competitive, oligopolistic, or monopolistic supply, or some other form of market, exists, or whether both sides of the market are open, or whether the supply side is closed by an investment veto. Governmental price-fixing is to be treated as a variant of the different market forms and not as a special market form of its own.”

So, what does this amount to? (more…)