The economic calculation problem is a criticism of using economic planning as a substitute for market-based allocation of the factors of production. It was first proposed by Ludwig von Mises in his 1920 article "Economic Calculation in the Socialist Commonwealth" and later expanded upon by Friedrich Hayek.
In economics, a free market is a system in which the prices for goods and services are self-regulated by buyers and sellers negotiating in an open market. In a free market, the laws and forces of supply and demand are free from any intervention by a government or other authority, and from all forms of economic privilege, monopolies and artificial scarcities. Proponents of the concept of free market contrast it with a regulated market in which a government intervenes in supply and demand through various methods such as tariffs used to restrict trade and to protect the local economy. In an idealized free-market economy, also called a liberal market economy, prices for goods and services are set freely by the forces of supply and demand and are allowed to reach their point of equilibrium without intervention by government policy.
A market economy is an economic system in which the decisions regarding investment, production and distribution are guided by the price signals created by the forces of supply and demand. The major characteristic of a market economy is the existence of factor markets that play a dominant role in the allocation of capital and the factors of production.
In economics, an externality is a cost or benefit that is imposed on a third party who did not agree to incur that cost or benefit. For the purpose of these statements, overall cost and benefit to society is defined as the sum of the imputed monetary value of benefits and costs to all parties involved. The concept of externality was first developed by economist Arthur Pigou in the 1920s. Air pollution from motor vehicles is an example of a negative externality. The costs of the air pollution for the rest of society is not compensated for by either the producers or users of motorized transport.
Joseph Eugene Stiglitz is an American economist, public policy analyst, and a professor at Columbia University. He is a recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979). He is a former senior vice president and chief economist of the World Bank and is a former member and chairman of the Council of Economic Advisers. He is known for his support of Georgist public finance theory and for his critical view of the management of globalization, of laissez-faire economists, and of international institutions such as the International Monetary Fund and the World Bank.
Economic interventionism, sometimes also called state interventionism, is an economic policy position favouring government intervention in the market process to correct market failures and promote the general welfare of the people. An economic intervention is an action taken by a government or international institution in a market economy in an effort to impact the economy beyond the basic regulation of fraud, enforcement of contracts, and provision of public goods and services. Economic intervention can be aimed at a variety of political or economic objectives, such as promoting economic growth, increasing employment, raising wages, raising or reducing prices, promoting income equality, managing the money supply and interest rates, increasing profits, or addressing market failures.
Globalization and Its Discontents is a book published in 2002 by the 2001 Nobel laureate Joseph E. Stiglitz.
Criticism of socialism is any critique of socialist models of economic organization and their feasibility as well as the political and social implications of adopting such a system. Some critiques are not directed toward socialism as a system, but rather toward the socialist movement, parties or existing states. Some critics consider socialism to be a purely theoretical concept that should be criticized on theoretical grounds while others hold that certain historical examples exist and that they can be criticized on practical grounds. Because there are many models of socialism, most critiques are focused on a specific type of socialism and the experience of Soviet-type economies that may not apply to all forms of socialism as different models of socialism conflict with each other over questions of property ownership, economic coordination and how socialism is to be achieved. Critics of specific models of socialism might be advocates of a different type of socialism.
Criticism of libertarianism includes ethical, economic, environmental and pragmatic concerns, albeit most of them are mainly related to right-libertarianism. For instance, it has been argued that laissez-faire capitalism does not necessarily produce the best or most efficient outcome, nor does its philosophy of individualism and policies of deregulation prevent the abuse of natural resources. Criticism of left-libertarianism is instead mainly related to anarchism and include allegations of utopianism, tacit authoritarianism and vandalism towards feats of civilization. Furthermore, criticism include left-libertarians' critiques of right-libertarianism and vice versa.
The Anglo-Saxon model or Anglo-Saxon capitalism is a capitalist model that emerged in the 1970s based on the Chicago school of economics. However, its origins date to the 18th century in the United Kingdom under the ideas of the classical economist Adam Smith.
The Great Transformation is a book by Karl Polanyi, a Hungarian-American political economist. First published in 1944 by Farrar & Rinehart, it deals with the social and political upheavals that took place in England during the rise of the market economy. Polanyi contends that the modern market economy and the modern nation-state should be understood not as discrete elements but as the single human invention he calls the "Market Society".
The Rebel Sell: Why the Culture Can't be Jammed is a non-fiction book written by Canadian authors Joseph Heath and Andrew Potter in 2004. The thesis of the book is that counter-cultural movements have failed to effect any progressive political or economic consequences; thus counter-culture is not a threat to "the system".
Capitalism and Freedom is a book by Milton Friedman originally published in 1962 by the University of Chicago Press which discusses the role of economic capitalism in liberal society. It sold over 400,000 copies in the first eighteen years and more than half a million since 1962. It has been translated into eighteen languages.
Joseph Heath is a Canadian philosopher. He is professor of philosophy at the University of Toronto, where he was formerly the director of the Centre for Ethics. He also teaches at the School of Public Policy and Governance. He received his Bachelor of Arts from McGill University in 1990, where his teachers included Charles Taylor, and his Master of Arts and Doctor of Philosophy (1995) degrees are from Northwestern University, where he studied under Thomas A. McCarthy and Jürgen Habermas. He has published both academic and popular writings, including the bestselling The Rebel Sell. His philosophical work includes papers and books in political philosophy, business ethics, rational choice theory, action theory, and critical theory.
The Market for Liberty is an anarcho-capitalist book written by Linda and Morris Tannehill, which according to Karl Hess has become "something of a classic." It was preceded by the self-published Liberty via the Market in 1969. Mary Ruwart credits the Tannehill's book with winning her over to anarcho-capitalism. Doug Casey was also converted to anarcho-capitalism after reading the book at the behest of Jarret Wollstein. According to the Ludwig von Mises Institute, it was written just following a period of intense study of the writings of both Ayn Rand and Murray Rothbard. It was the first significant anarcho-capitalist work to hit the libertarian movement, coming into print a year before Rothbard's Power and Market although Rothbard's book had been written earlier.
An economic ideology differentiates itself from economic theory in being normative rather than just explanatory in its approach. Economic ideologies express perspectives on the way an economy should run and to what end, whereas the aim of economic theories is to create accurate explanatory models to describe how an economy currently functions. However, the two are closely interrelated, as underlying economic ideology influences the methodology and theory employed in analysis. The diverse ideology and methodology of the 74 Nobel laureates in economics speaks to such interrelation.
Filthy Lucre: Economics for People Who Hate Capitalism is a 2009 book by Joseph Heath. The book is organized around twelve fallacies or myths associated with economics, six of which are common on the left, and six of which are common on the right. It considers ideas like that the government should get out of the way of markets; that competition and Adam Smith’s invisible hand improve efficiency; the 'psychopathic' nature of corporations; and the inevitability of capitalism’s collapse.
Throughout modern history, a variety of perspectives on capitalism have evolved based on different schools of thought.
Ronald H. Nash was a philosophy professor at Reformed Theological Seminary. Nash served as a professor for over 40 years, teaching and writing in the areas of worldview, apologetics, ethics, theology, and history. He is known for his advocacy of Austrian economics, and his criticism of the evangelical left.
The Double Movement is a concept originated by Karl Polanyi in his book The Great Transformation. The phrase refers to the dialectical process of marketization and push for social protection against that marketization. First, laissez-faire reformers seek to "disembed" the economy in order to establish what Polanyi calls a "market society" wherein all things are commodified, including what Polanyi terms "false commodities": land, labor, and money. Second, a reactionary "countermovement" arises whereby society attempts to re-embed the economy through the creation of social protections such as labor laws and tariffs. In Polanyi's view, these liberal reformers seek to subordinate society to the market economy, which is taken by these reformers to be self-regulating. To Polanyi, this is a utopian project, as economies are always embedded in societies.
