“The gap that opened up between wage and productivity growth in the mid-19070s, and has since widened into a yawning chasm, seems to show that the US economy isn’t delivering for ordinary Americans as it has done in the past. […] Capitalism’s genius is supposed to be they way in which it brings about the sort of growth from which we all benefit. But if workers are getting more done but not getting a pay rise, maybe the system is broken.”
Interested in gaining more in-dept knowledge on the ethics of markets? On our new book page you get plenty of ideas on what to read.
“An economy of big businesses (operated for the benefit of global owners) is less than ideal for the individual and society. In contrast, a society of many small local businesses is more resilient, more empowering and more in keeping with the spirit of capitalism and of the market.”
The Caux Round Table envisions “a free, fair and prosperous global society built on the twin pillars of moral capitalism and responsible government.” They believe that “Moral Capitalism is the only system with the potential to meet the needs and aspirations of individuals, businesses, societies, and nations”
Economist John Kay “despairs at the caricatured greed-is-good view of the market that has become conventional wisdom. He calls this idea ‘both repellant to most thoughtful people and false as a description of how markets really operate.’ What has been lost, he says, is an appreciation of the extent to which ‘our economy does depend very heavily on morality and trust relationships. It is not a matter of leaving people to do whatever they like. Nor is it about glorifying greed.'”
“[…] this turn against markets among some conservatives is principally derived from a desire for something that has grown in our era of economic globalization. And that is a widespread and perfectly reasonable yearning for stability.”
“Two recent books indicate that a quiet revolution is challenging the foundations of the dismal science, promising radical changes in how we view many aspects of organizations, public policy, and even social life. […] Economics and our view of human behavior need not be dismal. It may even become inspirational.”
“I struggle with neoliberalism – as a problematic economic system we might want to change – and as an analytical term people increasingly use to describe that system. I’ve been reading and writing about the concept for more than a decade. But the more I read, the more I think that neoliberalism is losing its analytical edge.”
Trust is the soul of the market. The Latin word for trust, ‘fides’, means ‘faith’ but also ‘cord’, ‘string’: that what links people reciprocally. Is trust still important in our capitalism where reputation tries to substitute trust? And is it possible to trust without faith?
What courses to take if you would like to sharpen your thoughts on morality and markets? In the final post in this series some massive open online courses (MOOCs) on the topics of just banking, cooperative firms as an alternative to capitalism and social entrepreneurship.
“This was the task the Scottish Enlightenment thinkers took up: to understand change, and more specifically to understand how economic change affects society. That is something modern economics would do well to learn from: adopting an approach that is more respectful of historical, social and institutional contexts.”
“The popularity of Islamic financial instruments among Muslims is not surprising. Islamic law prohibits any forms of interest (riba) or gambling (qimar). Transactions that lack transparency (gharar) are also banned.”
“Schneider argues that mainstream economics has paid lip service to pluralism, but remains mired in conventionality. He unveils his ten ‘Principles of Pluralist, Heterodox Economics’ that are worthy of discussion.”
A lecture given by economist Eric van Damme at ERGO Xtra I, 4 October 2017 at Erasmus University Rotterdam.
“It may be hard to believe, but before these scholars came along, many economists assumed that humans acted like Spock on “Star Trek.” People were supposed to be perfectly rational calculating machines that looked at all the information and made correct choices. However, even a most casual view of the real world suggests this is not a good assumption. So who is Thaler and what’s so important about his work?”
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