At the end of the day, the balance of payments always balances.
Marx’s critique of capitalism and capitalist society has shaped much of the social thinking in Western countries that led to the welfare state and extensive government intervention into economic affairs.
Indeed, democracy and freedom are frequently heralded as being synonyms. An important question, however, is, What do these concepts mean, and are they in fact synonymous?
Introduce government intervention into the market system, and monopoly becomes a social harm and an economic problem.
The fundamental flaw in Professor DeLong’s view, as in John Maynard Keynes’ 1936 book is the idea that there exists a macro-economy the two sides of which are composed of aggregate demand and aggregate supply.
In the 19th century, liberalism was identified with the belief in and the defense of individual liberty in various spheres of life.
The best solution would be if the British authorities followed a policy of laissez-faire.
Say’s Law of Markets already included the answers to the questions against free markets with which the Keynesians attempted to challenge the efficacy of capitalism a century later.
How Trade, Property, and Rule of Law Ended Primitive Life.