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.

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.