Major Defects of the Market Economy

Abstract

When we characterize an argument that has no sound theoretical foundation as political, then what has been produced by economists so far is political economics. However, since the Classics and Marx all major economic schools have defended the claim that they were doing science. This claim has been convincingly rebutted. So, the task is still before us. The way forward is to move from behavioral to structural economics. In what we should be mostly interested are not so much the behavioral defects of economic agents but the structural defects of the market system and how to repair them.

Keywords: new framework of concepts, structure-centric, price mechanism, profit mechanism, structural stress, inefficiency mechanism, monetary order, indexation, growth imperative, theory inflicted unemployment, distribution mechanism

JEL Classification: B49, B59, C63, E10