Uncategorized

Two Great Economics Articles

One from the Right, by Thomas Sowell

Elites may have more brilliance, but those who make decisions for society as a whole cannot possibly have as much experience as the millions of people whose decisions they preempt. The education and intellects of the elites may lead them to have more sweeping presumptions, but that just makes them more dangerous to the freedom, as well as the well-being, of the people as a whole.

One from the Left, by Kevin Carson

By making capital and land artificially scarce and expensive, the state forces workers to sell their labor in a buyer’s market and thereby reduces the bargaining power of labor. The owners of land and capital are thereby enabled to collect scarcity rents.

The economic effects are destabilizing. Income shifts from workers, who work mainly to meet their consumption needs, to rentiers with a high propensity to save and invest.  The result is a chronic tendency toward overaccumulation and underconsumption.

At the same time, the state subsidizes the most centralized, capital-intensive forms of production, leading to mass-production industry with overbuilt plant and equipment that’s constantly plagued with idle capacity.

Categories: Uncategorized

Leave a Reply