Amit's Blog

Unveiling the Myth: Capitalism and the Illusion of Free Market “Capitalism is agnostic about political systems” (Rodrik, 2011) The conflation of "capitalism" and "free markets" obscures fundamental differences between these concepts, particularly when viewed through the lens of the colonial era (1500–1950 CE). Capitalism, defined by private ownership and profit-driven production, thrived on coercive systems like slavery and mercantilism, which were antithetical to free markets—idealized systems of voluntary exchange with minimal state intervention. This analysis delves into the colonial era’s economic distortions, capitalism’s growth within unfree systems, and the deliberate narrative equating the two, which serves vested interests. The note critiques how this conflation legitimizes exploitation, resists regulation, and obscures inequality. Historical case studies, modern parallels, and philosophical reflections highlight the ethical and practical challenges of ...

Through Fire and Reform: Capitalism’s Tumultuous Journey (1914–1980) Part 3 of 4 From the smoke-filled trenches of 1914 to the neon glow of 1980s malls, capitalism endured a gauntlet of crises that would make even the most stoic economist wince. Two world wars, the Great Depression, and the Cold War’s ideological cage match tested the system’s mettle, forcing it to bend, twist, and occasionally grovel before the altar of state intervention. This was no genteel evolution; it was a bare-knuckled brawl for survival, with capitalism emerging scarred but swaggering, thanks to a mix of government muscle, global handshakes, and a knack for reinvention. Yet, as we’ll see, this era of adaptation sowed seeds of tension, setting the stage for the neoliberal circus that followed. Buckle up—this is capitalism’s mid-20th-century saga, complete with heroic recoveries, ironic missteps, and a few well-deserved eye-rolls at its excesses. A World at War: Capitalism’s Command Performance (1914–1945)...

The doctrine of free trade, championed by Adam Smith and David Ricardo, has long been heralded as the cornerstone of global economic prosperity. Yet, the historical and contemporary trajectories of developing nations reveal that protectionism—state-led policies to shield domestic industries and foster economic growth —often serves as a more effective strategy for overcoming structural disadvantages. Free trade assumes a level playing field, but developing nations face technological gaps, capital shortages, and unequal market access. This essay argues that protectionism, when strategically implemented, enables developing nations to build competitive industries, enhance economic sovereignty, and achieve sustainable growth . By examining the 19th-century protectionist successes of the United States and Chile, alongside modern examples from Japan, South Korea, China, India, Brazil, and Ethiopia, and drawing on insights from thinkers like Friedrich List and Ha-Joon Chang, this essay challe...