Schedium

New York City Stock Exchange (by LeoTar, via Wikimedia Commons) In mainstream economics free markets are considered the linchpin of a free and prosperous economic and political system. As t he  CATO Institute , a think tank "dedicated to the principles of individual liberty, limited government, free markets and peace", explains in his website: "To survive and to flourish, individuals need to engage in economic activity. The right to property entails the right to exchange property by mutual agreement.  Free markets  are the economic system of free individuals, and they are necessary to create wealth. Libertarians believe that people will be both freer and more prosperous if government intervention in people’s economic choices is minimized." However, the concept of "free market" is nothing but a construct created by ideologues more interested in abstract theories than in practical analysis. Indeed, what are "free markets"? As ec...

  Family watching television, c. 1958 (by Evert F. Baumgardner via  Wikimedia Commons ) The era between 1945 and 1975 is often described as the 'Golden Age' of capitalism. During this period the economy of the United States, Western Europe and Japan grew at an unprecedented pace. The post-war economic miracle was made possible by the parallel growth of productivity, capital stock per worker and real wages, which ensured a balanced development of production and consumption. Despite the rapid increase in the volume of international trade, in the post-war period developed countries mostly relied on their domestic market to boost growth (see  The Golden Age of Capitalism: Reinterpreting the Postwar Experience , eds Stephen A. Marglin, Juliet B. Schor). But were the nearly three decades that followed the Second World War really a 'golden age'? Were people better off than we are now? Let us look at some facts. In 1960-61 the average  household income  in the U...

Looking north on Spadra Avenue, Fullerton, 1950s (image courtesy Orange Country Archives via Flickr) The era between 1945 and 1975 is often described as the 'Golden Age' of capitalism. During this period the economy of the United States, Western Europe and Japan grew at an unprecedented pace. The post-war economic miracle was made possible by the parallel growth of productivity, capital stock per worker and real wages, which ensured a balanced development of production and consumption. Despite the rapid increase in the volume of international trade, in the post-war period developed countries mostly relied on their domestic market to boost growth (see  The Golden Age of Capitalism: Reinterpreting the Postwar Experience , eds Stephen A. Marglin, Juliet B. Schor). But were the nearly three decades that followed the Second World War really a 'golden age'? Were people better off than we are now? Let us look at some facts. In 1960-61 the average  household income...