# Tag Info

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Necessary Caveats When Discussing Slavery: First before tackling this question it is important to note that this issue is broad and complex. This is because there is no single 'slavery'. For example, slavery under the Roman Empire was not the same as slavery practiced in US south (see Tamin; 2017). Furthermore, even within a given society there might be ...

7

The shareholder system is a way of distributing the ownership of the company - each shareholder owns a certain part of the company. Shareholders are the owners of the company, in several company legal forms, such as an LLC. They exist before and after an IPO (Initial public offer), meaning that both public (traded) and private companies may have shareholders....

6

The supply of masks can't keep up with soaring demand because mask producers have capacity constraints in the short run. See this recent article.

5

According to some yes. In this (historically oriented) view, whatever succeeded feudalism is called capitalism. Capitalism, broadly accepted as a phase of history, is dominating the last half-a-millennium. It has also become conventional that capitalism itself had various phases and stages. Its antecedents go back to ancient history. Barter and exchange of ...

5

Yes. Anyone who utilizes their privately owned property or assets as a means of production for the sake of profit is a capitalist. In this case the farmer's capital is the land which they use for agricultural production.

4

(Bowing to peer pressure) According to original Marxist theory, no, he is not. Here, the defining characteristic of a capitalist is that he appropriates (as "profits") the surplus value that is created during the production process by other people's labor (capital does not produce surplus value). Your freelancer or small business owner without employees ...

4

Competition "works" in capitalism in the sense that society, as a whole, is provided with the maximum possible quantity of goods for a price which gets close to the cost of producing the good. Microeconomics studies how this works theoretically, and uses a series of assumptions to make the "mathematics" simpler, such as that everyone in the market is ...

4

No, the idea of wealth as something to be created did not originate in the United States. It was part of the mercantilist approach to national economic policy that was widely adopted in Europe in the 16th to 18th centuries. Mercantilism involved a range of policies, many of which were designed to increase the wealth of one country at the expense of others ...

4

Capitalism is defined as an economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state. It functions as an allocation mechanism which generally yields the most optimal results under the Fundamental theorems of welfare economics and prevents issues such as Tragedy of the commons ...

4

First of all there are several incorrect statements in your text: Investing money is not just raking in the cash. It involves a risk, actually non trivial part of the reason why you earn interest on money you invest is the compensation for you taking this risk. If you consistently take bad risks you eventually lose your money, so its not correct to say ...

4

The Pareto distribution was derived based on the observation of Vilfredo Pareto that in Italy $80\%$ share of land belonged to $20\%$ of the country’s population, and he showed this held for many other countries as well (see Pareto Manual of political economy - the book is still being reprinted). Consequently, based on this empirical observation it was ...

3

There is an ongoing project to try and estimate how close a society is to the ideal, see the indices of economic freedom by the Heritage Foundation and the Fraser Institute. The ones who made They score countries from 0 (all-pervasive state control) to 10. Hong Kong (8.91) and Singapore (8.71) are currently the two countries closest to the ideal, according ...

3

From a neoclassical perspective, its function is to allocate scarce resources efficiently, based on the invisible hand that make human selfishness work for the common good. Provided issues like externalities, public goods, etc are taking into account, every factor is paid its marginal product, ensuring efficiency. From a Marxist perspective, its function is ...

3

First, let us make a distinction between the functional distribution of income, related to how payment goes to factors of production, i.e, labour and capital, via wages and rents, and the personal distribution of income, which refers to how such factor payments are distributed across individuals or households. After commenting about this, we can start to ...

3

While the owners of a successful business will generally experience an exponential growth compared to their employees, there are some factors to consider: I find it unrealistic for any business to maintain a growth rate of 100% over many years. (As per the example) You can only sell twice as much if you can find twice as many buyers. As a business grows, it ...

3

Re: main question. It can range from a) companies fraudulently charging above/below market prices among departments/subsidiaries in order to fraudulently lower tax liabilities in a particular jurisdiction, to b) companies retaining profits and associated capital in the foreign country that the profits were earned in. Most often, it refers to locating ...

3

This is a common problem in many domains. For example, there's massive new demand of Airbus planes after the Boeing 737 Max 8 disaster, and their manufacturing capacity is maxed out. I'm familiar with it from the domain of software development, so I'll use that as an example. Suppose some website gets mentioned on Reddit and the post happens to hit the ...

2

Small Business Owner: Yes. Freelance Writer: Yes. Subsistence Farmer: No. Capitalism is the use to the private sector to grow the economy. This means that the private sector has to be producing a good or service that can be sold in the marketplace to benefit society. Let us take a look at your examples. A small business owner is, by definition, ...

2

My opinion is that “capitalism” and “socialism” in this context is in the eye of te beholder. The European countries are mixed economies. One standard metric is the size of government expenditures as a percentage of GDP. One issue is that different countries have different ways of measuring national accounts data. The IMF World Economic World Economic ...

2

The dictionary definitions of capitalism (currently the most upvoted answer) have been critiqued as inadequate, in the sense that they are too broad, by Geoffrey Hodgson in his treatise, Conceptualising Capitalism (University of Chicago Press, 2015). Definitions proliferate. Most dictionaries stress private ownership and markets; many add the profit ...

2

In my opinion there are two alternatives which are rather complementary. Participatory Economics or PARECON by Michael Albert and Robin Hahnel : http://www.zcommunications.org/znet/topics/parecon, and the Reciprocity by Dominique Temple and Mireille Chabal (although these two are not economists) http://dominique.temple.free.fr/ and http://mireille.chabal....

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Distributism Distributism is one such alternative, promoted in the early 20th century by Hilaire Belloc (Economics for Helen: A Brief Outline of Real Economy) and G. K. Chesterton (Utopia of Usurers). As John Médaille describes it: Its key tenet is that ownership of the means of production should be as widespread as possible rather than being concentrated ...

2

Arguably, Henry George described such an alternative in his 1874 work Progress and Poverty. His system eventually became known as Georgism. George saw his system as different than either Capitalism or Communism, as both of those systems equated Land with Capital and called for either the private ownership of both, or the communal ownership of both. ...

2

Did/does a decline in crime rates encourage materialistic values? These are interesting claims but Shiller does not seem to offer anything to back them. Much of it sounds quite logical, whence I would not expect the author to present evidence on that. But, despite my consistent preference for neoliberalism, I think the author's conclusion is ...

2

To expand on my comment. Your question is not really about economics but about philosophy or political science. The reason for this is that the Economics is usually defined following the definition of Lionel Robbins as: "Economics is the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." Neo-...

2

Exacerbating the short-run supply matter, these kinds of masks aren't actually for healthy people to keep pathogens away. They're for sick people to keep from spreading pathogens. So not only is "appropriate" demand spiking due to the virus spreading, "mistaken" demand is spiking due to fear - and I am comfortable making the data-less claim that this ...

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As a disclaimer, this is not an answer, rather a long-form explanation of the difficulties of answering. The first leg is uncertainty about the danger of the epidemic. Economists are not medical experts. For example, one could imagine that there is an amazing breakthrough where a common medicine saves patients. The economic effects of that scenario are very ...

2

Here is a graph of labor productivity per hour for the United States since WWII. This is fairly typical of capitalist economies. Even Karl Marx and revolutionary socialists recognize that increasing labor productivity is a general characteristic of capitalism. So yes, the pie keeps getting bigger and bigger as a result of this in combination with population ...

2

Good question! An important thing to understand about the word "Capitalism" as used by Schiff is that he views economics from the framework of the so-called "Austrian School". They reject the validity of a lot of mainstream concepts ("rational actors", "utility functions", and basically all mathematical/statistical ...

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