Thank you for this excellent validation of capitalism. Too many anti-capitalists fail to understand that the trouble with "capitalism" is where regulatory corruption or incompetence allows the system to drift toward mercantilism, the cronyist mechanism capitalism sought to replace. And that the very aspects of human nature that make capitalism dysfunctional are the same aspects that make socialism a nightmare. This article clarifies the spontaneous order that is the beauty of the free-market system [when there are no thumbs on the scale]. The most common fallacy of anti-capitalists is to confuse profit-seeking with regulatory capture. Monopolies are a special case, but of course the regulatory apparatus is the ultimate monopoly. More like this, please!
I consider myself capitalist. But I just want to clarify that markets and capitalism are distinct ideas that can run independently. You totally have free-market socialism or state-driven capitalism. In some sense the food banks are a validation of market socialism!
Please elaborate, I'm always looking for new kinds of framing on economics. When you say state-driven capitalism, do you differentiate from mercantilism? And can you give me some other examples of free-market socialism? And do you consider this food bank with the monopoly money one of those?
China is usually considered an example of state capitalism. Individuals can create companies, but the state has a strong hand in shaping markets and certain companies are explicitly state owned.
What counts as market socialism isn't exactly defined, but having strong redistribution along with not allowing private ownership of the means of production would certainly be a part of it. The food banks can be interpreted as a microcosm of this, especially where all the shares that are spent are redistributed amongst the other food banks.
The key point is to realize that actual economic theory and policy space is a lot more diverse than just pro markets and anti markets.
I volunteer at a food charity downstream of the food bank. The inability of many people - I think maybe 30% of the adults and nearly all the students - to understand that markets reveal what people do want rather than what they are supposed to want is demoralising.
What a lovely story and article.. thank you. The article is great for showing positive results. It would be great to have a follow-up with specifics of how the system worked (before/after)..perhaps for a single food bank.
Thank you for this excellent validation of capitalism. Too many anti-capitalists fail to understand that the trouble with "capitalism" is where regulatory corruption or incompetence allows the system to drift toward mercantilism, the cronyist mechanism capitalism sought to replace. And that the very aspects of human nature that make capitalism dysfunctional are the same aspects that make socialism a nightmare. This article clarifies the spontaneous order that is the beauty of the free-market system [when there are no thumbs on the scale]. The most common fallacy of anti-capitalists is to confuse profit-seeking with regulatory capture. Monopolies are a special case, but of course the regulatory apparatus is the ultimate monopoly. More like this, please!
I consider myself capitalist. But I just want to clarify that markets and capitalism are distinct ideas that can run independently. You totally have free-market socialism or state-driven capitalism. In some sense the food banks are a validation of market socialism!
Please elaborate, I'm always looking for new kinds of framing on economics. When you say state-driven capitalism, do you differentiate from mercantilism? And can you give me some other examples of free-market socialism? And do you consider this food bank with the monopoly money one of those?
China is usually considered an example of state capitalism. Individuals can create companies, but the state has a strong hand in shaping markets and certain companies are explicitly state owned.
What counts as market socialism isn't exactly defined, but having strong redistribution along with not allowing private ownership of the means of production would certainly be a part of it. The food banks can be interpreted as a microcosm of this, especially where all the shares that are spent are redistributed amongst the other food banks.
The key point is to realize that actual economic theory and policy space is a lot more diverse than just pro markets and anti markets.
Okay.
I volunteer at a food charity downstream of the food bank. The inability of many people - I think maybe 30% of the adults and nearly all the students - to understand that markets reveal what people do want rather than what they are supposed to want is demoralising.
Very well explained. 💪👏
What a lovely story and article.. thank you. The article is great for showing positive results. It would be great to have a follow-up with specifics of how the system worked (before/after)..perhaps for a single food bank.