Two Questions in Political Economy

Question 1: At least during the last two hundred years we have seen in the world a spectacular increase in the quality of life, thanks to capitalism. However, during the same period we have also seen an amazing growth of the State. How could this apparent paradox be explained? Response 1: The state is an impediment to growth. We achieve prosperity despite it, not because of it. At present, our GDP statistics include government expenditures. Murray Rothbard rightly contended that these payments should be subtracted from private sector goods and services, not added to them.. The capitalist system is so … Continue reading Two Questions in Political Economy