The Natural Instability of Markets: Expectations, Increasing Returns, and the Collapse of Capitalism / Edition 1

by Michael Perelman

Overview

As Socialist states struggle to transform themselves into market economies and the United States privatizes everything from schooling to policing, the current crises in Russia and East Asia suggest that something might be amiss. In the rush to open societies to the benefits of competition, economists have overlooked the fundamental instability of competitive markets. What had seemed to be an invincible capitalist juggernaut may be reaching its apotheosis. A close look at market economies is more timely and crucial than ever. Michael Perelman argues that capitalism's victory is temporary, based as it is on an unrealistic understanding of the system's inherent risks. He analyzes the nature and causes of crisis within a market society, and along the way, he re-examines one of capitalism's most primary and unquestioned tenets, that the more competition there is, the better off society will be. This accessible book, garnished with plenty of examples and anecdotes, is an open-minded injection of common sense into the understanding of a capitalist society.

Product Details

ISBN-13:	9780312221218
Publisher:	Palgrave Macmillan US
Publication date:	06/30/1999
Edition description:	1999
Pages:	188
Product dimensions:	5.60(w) x 8.30(h) x 0.90(d)

About the Author

MICHAEL PERELMAN is Professor of Economics at California State University, Chico.

Table of Contents

Introduction: The Fragile Foundations of the Triumphant Market Competition: The Hidden Costs of the Invisible Hand How Economists Work Instability: Keynes, Schumpeter, and Polanyi Inertia The Evolution of Competition in the U.S. Economy A Summing Up

Editorial Reviews

"His message is an important and well-reasoned one...a book that deserves a wide audience." - Review of Political Economy

From the Publisher

Perelman (economics, California State U., Chico) argues that capitalism's victory over socialism is temporary, based as it is on an unrealistic understanding of the system's inherent risks. He analyzes the nature and causes of crisis within a market society, and he maintains that one of capitalism's most primary and unquestioned tenets<-->the more competition there is, the better off the society will be<-->overlooks the fundamental instability of competitive markets. Annotation c. Book News, Inc., Portland, OR (booknews.com)

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