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.

Thanksgiving Was a Triumph of Capitalism over Collectivism

This time of the year, whether in good economic times or bad, is when we gather with our family and friends and enjoy a Thanksgiving meal together. It marks a remembrance of those early Pilgrim Fathers who crossed the uncharted ocean from Europe to make a new start in Plymouth, Massachusetts. What is less appreciated is that Thanksgiving also is a celebration of the birth of free enterprise in America.

Why Would Anyone Want a President?

Apart from employees of the executive branch, or active-duty members of the military who have been called into service by Congress, no American really has a “president.” The office was intended to be peripheral to the daily concerns of Americans, rather than the central focus of their existence. What a wonderful thing it would be if Americans of all persuasions adopted the motto “Not My President” – and then learned to regard the state itself with the proper mixture of hostility and contempt.

The Trouble With Politics

Politics is of its very nature is biased in favor of intervention and planning. Even in its “minarchist” or “night-watchman” version, politics is based at root on the idea that some decisions must be made coercively and imposed on unwilling minorities – or even majorities, as the case may be. This is contrary to the principle we observe in private life every day: the consent of both parties is necessary for a transaction to take place.