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Old May 26 2013, 04:26 PM   #174
horatio83
Commodore
 
Re: United Earth? No Thanks.

T'Girl wrote: View Post
horatio83 wrote: View Post
T'Girl wrote: View Post
Merchant capitalism dates back to the ninth century in the Arab world. Market economies (on Earth) have been around for thousands of years.
No.
Actual yes.

Markets have always existed ...
Which is what I said.

... but modern free market economies have only existed for about 200 years.
Which has what to do with what I said?

Merchant capitalism is over eleven centuries old, coined money to be used in commerce is twenty-five centuries old.

The shekel, as a standardized unit of weight to be used in trade, commerce and wages, is about fifty centuries old.

You mistake capitalism / market economy, a system which has only existed for about two centuries and turned out to be the most dynamic one, with markets. Just because there are markets doesn't imply that you have a market economy as markets exist in ALL economic systems, be it the tribal tradings of humans 20.000 years ago, feudalism or communism.

A market can be highly inefficient, be it because of externalities, informational-incentive problems (Stiglitz's old sharecropping paper basically points out why feudalism, a system with extreme land inequality, is inefficient and the incentive problems in communism are obvious) or lack of competition (I already mentioned gilds).
In modern market economies these inefficiencies are historically speaking relatively low which is why we have had steady output growth for about two centuries.
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