Major Defects of the Market Economy

40 Pages Posted: 30 Jun 2015  

Egmont Kakarot-Handtke

University of Stuttgart - Institute of Economics and Law

Date Written: June 28, 2015

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

Suggested Citation

Kakarot-Handtke, Egmont, Major Defects of the Market Economy (June 28, 2015). Available at SSRN: https://ssrn.com/abstract=2624350 or http://dx.doi.org/10.2139/ssrn.2624350

Egmont Kakarot-Handtke (Contact Author)

University of Stuttgart - Institute of Economics and Law ( email )

Keplerstrasse 17
Stuttgart
Germany

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