Article Image

IPFS News Link • Economic Theory

The Looting Machine Called Capitalism

• http://www.paulcraigroberts.org, Paul Craig Robert

In the US, society and the environment have to pick up the tab produced by capitalist activity.

In the past when critics raised the question about external costs, that is, costs that are external to the company although produced by the company's activities, economists answered that it was not really a problem, because those harmed by the activity could be compensated for the damages that they suffered. This statement was intended to reinforce the claim that capitalism served the general welfare. However, the extremely primitive nature of American property rights meant that rarely would those suffering harm be compensated. The apologists for capitalism saved the system in the abstract, but not in reality.

My recent article, "The Destruction of Inlet Beach," made it clear to me that very little, if any, of the real estate development underway would be profitable if the external costs imposed on existing property holders had to be compensated. http://www.paulcraigroberts.org/2017/04/17/destruction-inlet-beach/


thelibertyadvisor.com/declare