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October 11, 2007

Comments

dearieme

"many capitalists' .. commitment to free markets is fictitious - they are not interested in creating markets that would benefit the poor and vulnerable": your conclusion may be correct but your logic isn't.

Jonathan

Highly debatable. Christopher Dow's 'Major Recessions' (OUP, 1998) shows that recessions in the UK and elsewhere have persistent negative effects. A recent IMF study found this econometrically for the great majority of countries :

http://www.imf.org/external/pubs/cat/longres.cfm?sk=18392.0

Schumpetarian notions that recessions may have beneficial creative destruction effects are currently quite fashionable. They are not, though, supported by the data.

dsquared

[The costs of recession are, therefore, costs of having missing markets.]

it's the inability to buy sufficient insurance that's the problem, not the market per se.

mat

Don't the markets already exist? To insure against recession, all you need to do is buy some countercyclical stocks.

chris strange

Doesn't George understand that the environment is a luxury good. The only way that people will really pay attention to it is if they are already rich enough that getting everything else that isn't a luxury isn't a problem? As an environmentalist he should be praising economic growth as it lets more and more people afford to become environmentally conscious (plus campaigning for nuclear power in order to power this growth in a way that is carbon free).

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