I've been reading that there are myths of capitalist economics. What are these?
Answer:
The "sue" and "I'll press charges" are obvious myths. The word "gift" is our supreme power and right and it is hidden often.
Some claim that capitalist economics is just a means to maintain social class standings that were already in place.
They would also argue that the market would not naturally move toward equilibrium.
However most of the "myths of capitalism" have been made up by individuals who are simply opposed to the system with little factual support.
Many of the myths attributed to capitalist economies are actually arguments against laissez faire economics, not capitalism.
Too many to go through them all here but here are a couple examples:
Myth: In a (feasibly efficient) society, there would be no need for government intervention in market dynamics.
Argument Against: As demonstrated by Akerlof and others, asymmetric information in a market economy can drive market inefficiency or failure. While there exist many "market-based" mechanisms for solving these problems, they are - in general - working under the assumption that a particular signal by an economic agent is enforceable. The issue of enforceability necessitates market regulation of some sort.
Myth: Market economies will, in general, reach an equilibrium in the long run.
Argument Against: There are, in fact, many environments in which a limit point equilibrium will not be reached; instead, the dynamic path from an initial point in the system may actually deviate from equilibrium.
I know these aren't a direct answer to your question but I hope these help.
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