capitalism explained

Doug Henwood dhenwood at panix.com
Sun Feb 27 21:07:05 PST 2000


Also from the International Political Economy list, another market fundamentalist, Mark Frost, explains the beauties of capitalism:


>Capitalism, is an institutional arrangement wherby winners and losers are
>placed in juxtaposition, and in the macro sense, provide paraeto "signaling"
>to individuals regarding risk vs safety optimality decisions. Those who
>choose well prosper, those who choose poorly, suffer the indignation of
>poverty. Thus it is a "carrot and stick" parable, meaning that the carrot
>of riches must be balanced by the threat of poverty. To the extent that the
>"stick" aspect is softened, then the institutional efficiency of the market
>process is damaged.

Doug



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