Prosperity Versus Planning: How Government Stifles Economic Growth

By David Osterfeld | Go to book overview

2
Economy, Government, and Culture

Economic growth and development are products of a multitude of factors. Among the most important are economic and political institutions and cultural values. An examination of these three factors will be the focus of this chapter. In practice, the three are obviously interrelated and mutually influencing. However, for purposes of analysis they will, as much as is possible, be treated separately.


Economic Institutions

All societies must have some method for coordinating the economic actions of their individual members. The larger and more complex the society, the more difficult and crucial this problem becomes. The impact of economic institutions on economic growth and development can be illustrated by contrasting the operation of a pure, free market, capitalist order with that of a pure, non-market, socialist order and the mixed order of mercantilism.


Pure (Free Market) Capitalism

There are three problems of coordination that must be solved, in fact continually solved, in any economic system: (1) the problem of priorities, that is, what goods and services should be produced, and in what quality and quantity; (2) the problem of efficiency, that is, what combination of factors used in the production of a commodity will (a) not impede the production of goods desired more intensely by consumers and (b) leave the largest bundle of factors left over for the production of other goods and services; and (3) the problem of distribution, that is, how should each participant in the productive process be compensated. The pure capitalist order will be briefly examined in an effort to highlight how it would approach and deal with these three problems.

It should be pointed out at the outset that since consumers buy only what they intend to use, one can, on the pure, free market, make a profit only by producing what is usable. Hence there can be no distinction between production for use and production for profit.

-19-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

(Einhorn 25)

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Note: primary sources have slightly different requirements for citation. Please see these guidelines for more information.

Cited page

Bookmark this page
Prosperity Versus Planning: How Government Stifles Economic Growth
Table of contents

Table of contents

  • Title Page iii
  • Preface vii
  • Contents xi
  • I - Theoretical Framework 1
  • 1 - The Three Worlds 3
  • 2 - Economy, Government, and Culture 19
  • II - The Key Variables 59
  • 3 - Food 61
  • 4 - Resources 84
  • Notes 102
  • 5 - Population 104
  • III - Economic Development: Engines and Obstacles 137
  • 6 - Foreign Aid 139
  • 7 - Multinationals 162
  • 8 - Migration 194
  • 9 - Corruption 204
  • Note 218
  • IV - Conclusion: The Enabling Environment 219
  • 10 - Property, Law, and Development 221
  • Notes 245
  • References 247
  • Index 265
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Help
Full screen
Items saved from this book
  • Bookmarks
  • Highlights & Notes
  • Citations
/ 276

matching results for page

    Questia reader help

    How to highlight and cite specific passages

    1. Click or tap the first word you want to select.
    2. Click or tap the last word you want to select, and you’ll see everything in between get selected.
    3. You’ll then get a menu of options like creating a highlight or a citation from that passage of text.

    OK, got it!

    Cited passage

    Style
    Citations are available only to our active members.
    Buy instant access to cite pages or passages in MLA 8, MLA 7, APA and Chicago citation styles.

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

    "Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

    1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

    Cited passage

    Thanks for trying Questia!

    Please continue trying out our research tools, but please note, full functionality is available only to our active members.

    Your work will be lost once you leave this Web page.

    Buy instant access to save your work.

    Already a member? Log in now.

    Search by... Author
    Show... All Results Primary Sources Peer-reviewed

    Oops!

    An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.