Using Innovism Instead of Capitalism

McCloskey’s suggestion for changing the term “capitalism” into “innovism” might be a more practical way of arguing for free markets. Capitalism, as it’s tossed around in conversation, ends up getting misconstrued by both sides of the argument, because it lends itself to assume that societies have only become rich through the accumulation of capital. However, this is simply not true. It is ideas and the ability for entrepreneurs to assume the risks of employing the factors of production, by means of prices set in a market, to produce new (and perceived better) products or services to then turn around and sell them at uncertain prices in the market. The z, not the k, in our Solow model, if you will. This is “trade-tested betterment” as also proposed by McCloskey. Continue reading “Using Innovism Instead of Capitalism”

Bertil Ohlin: It’s Like Going to The Grocery Store. Well, Kinda.

As humans, it seems like we were made to trade with each other. It’s in our DNA. From novel ideas to building materials to fidget spinners, we have constantly figured out ways to exchange stuff with each other. Continue reading “Bertil Ohlin: It’s Like Going to The Grocery Store. Well, Kinda.”

Paul Samuelson: A Titan for Trade

One of the subjects of focus for Americans this past year was international trade. The United States trades with many countries around the world, and trade deals with those countries solidify the terms under which the two nations agree to trade. However, these trade agreements have come under fire from numerous opponents. Continue reading “Paul Samuelson: A Titan for Trade”