Two Cheers for Capitalism?

According to a popular view that I call “two cheers for capitalism,” capitalism’s effect on development is ambiguous and mixed. This paper empirically investigates that view. I find that it’s wrong. Citizens in countries that became more capitalist over the last quarter century became wealthier, healthier, more educated, and politically freer. Citizens in countries that became significantly less capitalist over this period endured stagnating income, shortening life spans, smaller gains in education, and increasingly oppressive political regimes. The data unequivocally evidence capitalism’s superiority for development. Full-force cheerleading for capitalism is well deserved and three cheers are in order instead of two.     

Clearer Cues,More Consistent Voters: A Benefit of Elite Polarization

Scholars typically argue that elite polarization has only negative consequences for American politics. I challenge this view by demonstrating that elite polarization, by clarifying where the parties stand on the issues of the day, causes ordinary voters to adopt more consistent attitudes. Scholars have made such claims in the past, but because only observational data has been available, demonstrating a cause-and-effect relationship has proven to be difficult. I use original experiments to verify that there is a small but significant causal link between elite polarization and voter consistency. These findings have important normative implications for our understanding of the consequences of elite polarization, the role of political parties in a modern democracy, and the standards scholars use to assess citizen competence and participation.     

In Defense of Dwelling in Great Minds

It seems like a small and perhaps shrinking minority of economists know reverence of individual figures. Most economists seem to be without heroes, and sometimes disparage reverence as cultish idolatry. Here I collect from Michael Polanyi’s The Study of Man (1959) a few passages that eloquently suggest that “we need reverence to perceive greatness, even as we need a telescope to observe spiral nebulae.” The selection is made in the defense of seeking out and communing with great minds.     

Why the Fair Use Doctrine Should be Eliminated

The concept of fair use was introduced in the Copyright Act of 1976 as a means of allowing limited free access to copyrighted material. However, the application of fair use principles in the adjudication of infringement cases has demonstrated a fundamental problem in our approach to intellectual property rights. In much the same way as Hardin recognized a tragedy of the commons, continued efforts to make decisions based on the fair use doctrine run the risk of creating an information anti-commons.     

The Physical Basis of Voluntary Trade

The article discusses the conditions under which can we say that people enter the economic system voluntarily. “The Need for an Exit Option” briefly explains the philosophical argument that voluntary interaction requires an exit option—a reasonable alternative to participation in the projects of others. “The Treatment of Effective Forced Labor in Economic and Political Theory” considers the treatment of effectively forced interaction in economic and political theory. “Human Need” discusses theories of human need to determine the capabilities a person requires to have an acceptable exit option. “Capability in Cash, Kind, or Raw Resources” considers what form access to that level of capability should take—in cash, kind, or raw resources, concluding that a basic income guarantee is the most effective method to ensure an exit option in a modern, industrial economy.