December 12th 2009


  Buy Issue 2818
Qty:

Articles from this issue:

EDITORIAL: The challenges facing Tony Abbott

CANBERRA OBSERVED: Abbott's victory took media by surprise

NATIONAL AFFAIRS: Senate committee recommends against same-sex marriage

SOUTH AUSTRALIA: Euthanasia bill defeated in SA

ENVIRONMENT: UK's climate research centre discredited

ECONOMICS: Birdsville Amendment stops fuel predatory pricing

ENERGY: Time for a new Coalition emissions policy

THE MANHATTAN DECLARATION: U.S. Christian leaders draw a line in the sand

REPRODUCTIVE HEALTH: Women's health risk ignored by Rudd Government

UNITED STATES: Health care reforms unleash passionate debate

RUSSIA: Medvedev's desperate drive to modernise Russia

EDUCATION: Whatever happened to adult authority?

SCHOOLS: Are independent schools enemies of social cohesion?

Westmore has not read my report: Fr Frank Brennan

Morally handicapped politicians

Market economics misunderstood

Surafend massacre

AS THE WORLD TURNS

CINEMA: Dickens' Christmas tale brought to life A Christmas Carol (rated PG)

BOOK REVIEW: FIRES OF FAITH: Catholic England under Mary Tudor, by Eamon Duffy

BOOK REVIEW: THE REVOLT OF THE PENDULUM: Essays 2005-2008, by Clive James

Books promotion page

survey link

FONT SIZE:

Market economics misunderstood


by John Ballantyne

News Weekly, December 12, 2009
Sir,

Dr Garrick Small's review of John M├ędaille's book, The Vocation of Business: Social Justice in the Marketplace. (News Weekly, November 28) is good in parts and rightly highlights the need for more ethical behaviour in the marketplace.

However, Dr Small's review contains a couple of serious errors.

He alleges that the 18th-century father of modern economics, Adam Smith, "succeeded in turning greed into the key virtue driving economics".

Smith did not. In fact, he said quite the opposite. In his neglected classic, The Wealth of Nations (1776), he denounced what he called "the mean rapacity, the monopolising spirit of merchants and manufacturers who neither are, nor ought to be, the rulers of mankind".

A second error is where Dr Small asserts: "Market economics assumes perfect market competition".

Perhaps some unbalanced libertarian ideologues might think this way. However, the standard undergraduate textbook's treatment of market economics is to examine four models of market behaviour, of which the simplified model of perfect market competition is but one.

The other three are monopoly (market domination by a single seller), oligopoly (market domination by a very few sellers, such as Australia's "big two" supermarkets, Coles and Woolworths), and monopolistic competition.

John Ballantyne,
Balwyn, Vic.




























Join email list

Join e-newsletter list


Your cart has 0 items



Subscribe to NewsWeekly

Research Papers



Trending articles

NATIONAL AFFAIRS Cardinal rebuts commission's 'Get Pell' campaign

COVER STORY Anti-discrimination law validates Safe Schools

U.S. AFFAIRS First Brexit, now Trump: it's the economy, stupid!

INDUSTRY AND ENVIRONMENT Wikileaks reveals U.S, funding behind anti-coal campaign

COVER STORY QUT discrimination case exposes Human Rights Commission failings

FOREIGN AFFAIRS How the left whitewashed Fidel Castro

ANALYSIS What is possible to a Trump Whitehouse



News and views from around the world

Frequently asked questions about section 18C (Simon Breheny)

Chilean legislators kill explicit sex-ed program (LifeSite News)

France to ban people with Down syndrome from smiling (The Huffington Post)

Child abuse and family structure: What is the evidence telling us (Family First NZ)

Woolworths beats ACCC supplier mistreatment case (Eli Greenblat)

Australia set to ride the quantum computing wave (Science in Public)

Weatherill warns states could introduce carbon prices (Rosie Lewis)

Green-left legerdemain doesn't make religion relevant (Fr James Grant)

Mass murderer Castro dies unpunished (Augusto Zimmermann)

The rise of political correctness (Angelo Codevilla)



























© Copyright NewsWeekly.com.au 2011
Last Modified:
December 2, 2016, 2:36 pm