capitalism explained

Joanna Sheldon cjs10 at cornell.edu
Sun Feb 27 23:35:37 PST 2000


So poverty IS a nation. I wondered about that.

Joanna

At 00:07 28-02-00 -0500, you wrote:
>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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