Extra Legal Markets: Difference between revisions
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=The Mystery of Capital= | =The Mystery of Capital= | ||
'''''Capitalism''''' | '''''Capitalism''''' | ||
:Capitalism stands alone as the only feasible way to rationally organize a modern economy. Capital is the force that raises the productivity of labor and creates the wealth of nations. Many of the inhabitants of Third World and former Communist countries already have the assests they need to allow for the success of Capitalism. Even in the poorest of countries people save. The reason why these countries fail is because they hold their resources in defective forms. Because the rights to these resources are not adequetly recorded, these assests can not be readily turned into capital. The difference between assests held in the U.S. and assests held by poorer countries is representation. Without representation, their assests are dead capital. Because of this problem extra legal markets, or activities outside the relm of recorded legal economic activity, dominate the economies of many of these countries. | :Capitalism stands alone as the only feasible way to rationally organize a modern economy. Capital is the force that raises the productivity of labor and creates the wealth of nations. Many of the inhabitants of Third World and former Communist countries already have the assests they need to allow for the success of Capitalism. Even in the poorest of countries people save. The reason why these countries fail is because they hold their resources in defective forms. Because the rights to these resources are not adequetly recorded, these assests can not be readily turned into capital. The difference between assests held in the U.S. and assests held by poorer countries is representation. Without representation, their assests are dead capital. Because of this problem extra legal markets, or activities outside the relm of recorded legal economic activity, dominate the economies of many of these countries. | ||
Revision as of 21:06, 3 December 2006
The Mystery of Missing Information
The Mystery of Capital
Capitalism
- Capitalism stands alone as the only feasible way to rationally organize a modern economy. Capital is the force that raises the productivity of labor and creates the wealth of nations. Many of the inhabitants of Third World and former Communist countries already have the assests they need to allow for the success of Capitalism. Even in the poorest of countries people save. The reason why these countries fail is because they hold their resources in defective forms. Because the rights to these resources are not adequetly recorded, these assests can not be readily turned into capital. The difference between assests held in the U.S. and assests held by poorer countries is representation. Without representation, their assests are dead capital. Because of this problem extra legal markets, or activities outside the relm of recorded legal economic activity, dominate the economies of many of these countries.
The Missing Lessons of U.S. History
The Mystery of Legal Failure: Why Property Law Does Not Work Outside the West
- The formal property systems of the West produce six effects that allow their citizens to generate capital. The incapicity elsewhere in the world to use capital comes from the fact that most of the people in the Third World and former Communist countries are cut off from these essential effects.
- Fixing the Economic Potential of Assets
- Integrating Dispersed Information into One System
- Making People Accountable
- Making Assets Fungible
- Networking People
- Protecting Transactions
