Tag Archives: rethinking property rights

Understanding the logic of capitalism: Efficiency, innovation … and inequality

Property rights in the means of production are the institutional basis of capitalism. While there is no economic theory that supports the need for the unequal distribution of property in a capitalist economy, inequality seems to be built into capitalism. As Christine Greenhalgh writes in an article published in 2005 in the Cambridge Journal of Economics, the empirical evidence from rich capitalist countries generally shows that the rich are gaining over the poor both within and between generations. “Why then”, she asks, “are there so many champions of the cause of free markets?” (p.1093).

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Filed under capitalism, David, economic analysis, social justice