Wednesday, July 18, 2012

Paul Krugman — Finance Capitalism

"Finance Capitalism." Where have I heard that before? Oh, right. It's one of Michael Hudson's favorite terms, along with "economic rent."

Read it at The New York Times | The Conscience of a Liberal

Finance Capitalism
by Paul Krugman

3 comments:

Anonymous said...

..along with "economic rent."

That's why i love the man. Only man on this planet who separates price and value.

Tom Hickey said...

Only man on this planet who separates price and value.

Right, because he understands Ricardo and Marx on economic rent. Classical economics was about economic rent, coming out of the feudal age, in which capital was becoming the new land and owners of capital the new land barons collecting rent from those who produced the value, which they could do because the difference between value and price.

Anonymous said...

I don't know what is capital, perhaps it is just "money," but formula still works very well in real estate. Lots of price, little value.