“Can Capitalism Survive?” Ch. 5 – Closed Season by Joseph Schumpeter (1942)

“Can Capitalism Survive?” Ch. 5 – Closed Season by Joseph Schumpeter (1942) Economics is a science of observation & interpretation Implies in our questions, room for difference of opinion can be narrowed but not reduced to zero Leads to new problems – doesn’t happen in experimental science We asked for an understandable relation between the… Read more “Can Capitalism Survive?” Ch. 5 – Closed Season by Joseph Schumpeter (1942)

“Can Capitalism Survive?” Ch. 4 – Monopolistic Tendencies by Joseph Schumpeter (1942)

Spilling the beans…“Can Capitalism Survive?” Ch. 4 – Monopolistic Tendencies by Joseph Schumpeter (1942) Let’s be more specific about what’s been said: 1 – New technology is a threat to industries who try to conserve positions through restriction of output Creative destruction disrupts the slow, balanced or even stationary state of growth Production expansion only… Read more “Can Capitalism Survive?” Ch. 4 – Monopolistic Tendencies by Joseph Schumpeter (1942)

“Can Capitalism Survive?” Ch. 3 – Process of Creative Destruction by Joseph Schumpeter (1942)

“Can Capitalism Survive?” Ch. 3 – Process of Creative Destruction by Joseph Schumpeter (1942) Monopolistic & Oligarchic Competition can be used in 2 ways to be made to show Capitalism isn’t the way for maximum production performance Some might say it’s always been that way but we’re only just now seeing it & it’s been… Read more “Can Capitalism Survive?” Ch. 3 – Process of Creative Destruction by Joseph Schumpeter (1942)

“Can Capitalism Survive?” Ch. 2 – Plausible Capitalism by Joseph Schumpeter (1942)

“Can Capitalism Survive?” Ch. 2 – Plausible Capitalism by Joseph Schumpeter (1942) We’ve projected average increase of total available production forward from 1928 o show the significance of past development & that it wouldn’t be shocking to see But there’s no justification for that projection/extrapolation especially so far into the future – mostly to give… Read more “Can Capitalism Survive?” Ch. 2 – Plausible Capitalism by Joseph Schumpeter (1942)

“Can Capitalism Survive?” Ch. 1 – The Rate of Increase of Total Output by Joseph Schumpeter (1942)

“Can Capitalism Survive?” Ch. 1 – The Rate of Increase of Total Output by Joseph Schumpeter (1942) Capitalism already has 2 strikes against it with a lot of people with respect to economics & cultural results In fact, it’s a breach of etiquette not to condemn it You have to point out its inadequacies &… Read more “Can Capitalism Survive?” Ch. 1 – The Rate of Increase of Total Output by Joseph Schumpeter (1942)

Adam Smith – “Of Colonies” from The Wealth of Nations, 1776

Adam Smith – “Of Colonies” from The Wealth of Nations, 1776 “Of the advantages which Europe has derived from the discovery of America” – from the Wealth of Nations, Book 4, Chapter 7, Part 3 General advantages Particular advantages   General advantages Increase of enjoyments (increase in variety of goods) Augmentation of industry (increase in… Read more Adam Smith – “Of Colonies” from The Wealth of Nations, 1776

“How Capitalism Was Built” by Anders Aslund – Chapter 2: Shock Therapy v. Gradualism

“How Capitalism Was Built” by Anders Aslund – Chapter 2: Shock Therapy versus Gradualism 28 countries totaling 400 million people were suddenly faced with a choice in political & economic systems Many intellectuals were pushing a “normal society”, meaning Western-style Democracy with a market economy, predominant private property, & rule of law East & Central… Read more “How Capitalism Was Built” by Anders Aslund – Chapter 2: Shock Therapy v. Gradualism

“How Capitalism Was Built” by Anders Aslund – Chapter 1: Communism & Its Demise

“How Capitalism Was Built” by Anders Aslund – Chapter 1: Communism & Its Demise (NOTES) Real Socialism Communist system was the most thoroughly politicized system the world has seen Political structure, undivided power or party & inter-penetration of party of party & state, suppression of all forces that depart from or oppose the party’s policy… Read more “How Capitalism Was Built” by Anders Aslund – Chapter 1: Communism & Its Demise

Friedrich Hayek – The Use of Knowledge in Society

Friedrich Hayek – The Use of Knowledge in Society. The American Economic Review, Vol. 35, Issue 4 (September 1945), 519-530. NOTES: Using rational economic order has a problem: We use all relevant info We use a coherent system of preferences We use complete knowledge of relevant means Problem becomes just using logic to solve the… Read more Friedrich Hayek – The Use of Knowledge in Society

“Manifesto of the Communist Party” – Karl Marx and Friedrich Engels

“Manifesto of the Communist Party” – Karl Marx and Friedrich Engels Introduction Communism is coming. All of the old powers of Europe right and left to stop it This is an acknowledgement that Communism is a force to be reckoned with Communists need to stop hiding and make themselves be heard Chapter 1 – Bourgeois… Read more “Manifesto of the Communist Party” – Karl Marx and Friedrich Engels

“Wealth of Nations” Book I by Adam Smith (1776)

“Wealth of Nations” Book I by Adam Smith (1776) Introduction Discussion on Wealth: Ratio of Total Amount Produced / Total Number of Consumers If this ratio goes up, the nation is better off and wealthier Q: Why do country have different have different ratios? Either higher or lower? Chapter 1 – Division of Labor The… Read more “Wealth of Nations” Book I by Adam Smith (1776)