Economic Localism Is No Better than Economic Nationalism

As Black Friday has continued to expand in recent years, one response to its orgy of discounts and deals has been to promote the following day as “Small Business Saturday.” The idea is to encourage people to shop at their local stores rather than at national chains or big-box stores, or perhaps on the Internet. Doing so, argue its proponents, is both moral and good for the local economy, as it keeps jobs and money in “our communities” rather than, presumably, in the hands of faceless and distant corporate masters.

The Five Institutions of the Market Economy

Let us see what the basic institutions of the market economy are. We may subdivide them for convenience of discussion into (1) private property, (2) free markets, (3) competition, (4) division and combination of labor, and (5) social cooperation. As we shall see, these are not separate institutions. They are mutually dependent: each implies the other, and makes it possible.

Who Benefits From Upper Class Wealth?

Many a social democrat and left anarchist decry the existence of wealth inequality, considering it evidence that a crime somewhere, some time has been committed, and that justice must be made through violent confiscatory and re-distributive government programs. To them such is perfectly just because it is the righting of a wrong. The state is a tool that may used in this way, just as for small government libertarians it may be used in self-defense. This is a type of self-defense by the have-nots against the haves. It make me wonder, however, just how beneficial wealth is to the haves, and even to the have-notes? Let us count the ways.