“Markets in the Next System” – Jesse A. Myserson

August 20, 2016

“In her seminal work “The Origin of Capitalism,” the late scholar Ellen Meiksins Wood took on the credo that “capitalism emerged when the market was liberated from age-old constraints and when, for one reason or another, opportunities for trade expanded.” Schoolchildren in the US are commonly taught to conceive of the broad variety of political-economic systems, both those extant and those possible, as divisible into two essential and opposing categories: “markets” and “planning.” “Markets,” in this formulation, offer opportunities for commerce which make people free, while “planning” oppresses people through inefficient resource rationing. It is taken for granted that “markets” and “capitalism” are synonymous; likewise “planning” and “socialism.” The problems with this formulation are legion, but particularly egregious is its utter ahistoricity: inconveniently for the schoolteachers formulation, markets predate capitalism by thousands of years.”

 

Markets in the next system

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