Saturday, January 7, 2012

The Myth of the Free Market: The Role of the State in a Capitalist Economy





Book Description
Publication Date: March 2009

* Explains how the 2008 financial meltdown came about and how to revitalize global and domestic economies
* Shows how capitalist economies developed and why the state matters in their functioning

Free market purists claim that the state is an inefficient institution that does little for society beyond providing stability and protection. The activities related to distributing resources and economic growth, they say, are better left to the “invisible hand” of the marketplace. These notions now seem tragically misguided in the wake of the 2008 market collapse and bailout. Mark Martinez describes how the flawed myth of the "invisible hand" distorted our understanding of how modern capitalist markets developed and actually work.

Martinez draws from history to illustrate that political processes and the state are not only instrumental in making capitalist markets work but that there would be no capitalist markets or wealth creation without state intervention. He brings his story up to the present day to show how the seeds of an unprecedented government intervention in the financial markets were sown in past actions. The Myth of the Free Market is a fascinating and accessible introduction to comparative economic systems as well as an incisive refutation of the standard mantras of neoclassical free market economic theory.



Visit http://www.amazon.com/ to buy the Book !

Editorial Reviews

Review

"A fast-moving primer bursting with relevant examples, The Myth of the Free Market is---to put it mildly---eye-opening. Mark Martinez's insight could not have arrived at a more important time. Compelling from cover to cover." --Bill Harnsberger, Featured Writer, Daily Kos

"In this thoughtful and erudite book, Martinez forces us to re-examine the myth of the 'natural' free market order. Using very intelligently a wide range of fascinating historical and contemporary examples, he takes us through many important economic, political, and philosophical reflections about the true nature of the market system and its important but limited role in the construction of a civilized society." --Ha-Joon Chang, University of Cambridge, author of Kicking Away the Ladder and Bad Samaritans

Review

"Ronald Reagan told us that "government is not the solution to our problem, government is the problem". This statement helped convince an entire generation that government does little more than hinder economic growth and the well-being of society. Professor Martinez - via lucid writing and a wealth of historical evidence - clearly demonstrates that relying on private market players alone to protect the integrity of markets will not produce the outcomes society desires. Recent events confirm this hypothesis. Read this book and see why Ronald Reagan was wrong and how government not only organizes markets but can indeed be a solution to our problems."

5.0 out of 5 stars Market Myths, December 7, 2009
The Myth of the Free Market by Mark A. Martinez is exceptionally well researched and written. It reads more like a text book than a casual reader and, as such, should be required reading for every senior high school student in America. It thoroughly demolishes the concept that free markets exist on anything larger than a local scale and cogently explains why free markets on a larger scale are probably not possible. Beyond high school, it should be taught in every MBA and graduate economics program so that those who manage the financial empire actually have some relevant information about how things really work and are better able to cope with day to day reality. It is high time that delusional thinking stop being the core operating mode in both the private and public policy sectors of our economic world. 

5.0 out of 5 stars Shows why the free market is best enhanced with principles from other systems, June 10, 2009
Is a completely free market truly the best way to do things? "The Myth of the Free Market: The Role of the State in a Capitalist Economy" is a scholarly economic guide exploring how the concept of the free market is flawed, as evidenced by the emergence of the current economic crisis and the slew of bailouts have come with it. Taking examples from history, "The Myth of Free Market" explains the issue and shows why the free market is best enhanced with principles from other systems.  

1 comment:

  1. The book is a mixed bag at best. As an economist, I agree that government is critical in providing the underpinnings for markets to function well. But, are politicians capable of providing functional underpinnings, when they are corrupted by vested interests, often do not understand economics, and their own election to office is paramount? Further, are government run establishments effectively operated, like USPS, Fannie May, public schools, the "military-industrial complex", and government agencies and legislative bodies? Further, do regulations facilitate necessary protections or merely impediments by frequently being excessive, supportive of vested interests, and requiring onerous and costly accounting and paperwork? A common example are the complex and unintelligible income tax provisions, frequently requiring a paid tax accountant.

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