TOOLBOX for CAPITALISM AND DEMOCRACY

1. TOOLBOX for CAPITALISM AND DEMOCRACY • PART I: INTRO • Negative and Positive Liberty • PART III: Liberalism • Transgression of dollars on rights • Exchanges born of desperation • “Fuzzy right to survival” • Equality vs. Efficiency • Pressure Effects • Match Effects • Mixed Economy • Second Best Markets • The THREE Efficiencies (Smithian, Keynsian, & Schumpterarian) • Homo sociologicus • Consumer Sovereignty vs. Market Circularity • Bounded Rationality • Boundary Violations • Regulated Competition • Irreversibilities • Exit vs. Voice • PART IV: Democratic Left • PoliticalEquality vs. Economic Liberty • Economic Power  Political Power • Clash b/w Democratic and Property Rights • Circularity in Politics • “The Economy produces people” • Homo republicanus • “Privileged Position of Business” • Self-regulating Egalitarian Order • Self-Governing Enterprises • Economic Democracy • Democracy trumps Guardianship • Principle of Affected Interests • Strong Democracy preferred to Thin • “Free Spaces” PARTS V and VI: THE POWER OF INSTITUTIONS • Part V: Political Institutions • Pluralism (No one rules) • Public Choice Theory • Ruling Class Theory • PART II: Laissez-Faire • Economic liberty protects political liberty • Bilateral, voluntary exchange • Many sellers, many buyers • Externality • Informed Choice • Invisible Hand • Indivisibility • Homo economicus • Rewards should reflect productivity • Cash benefits, vouchers preferred • “Revealed Preferences” • Caveat Emptor • Part VI: Corporations • Corporate Chartering • Corporate Personhood • Tyranny of the Bottom Line • Milgram and Authority Relations • Global Reach of Corporations • Part VII:Psychological Traits • Maximizining vs, Satisicing • Prospect Theory; Endowment Effects • Availability heuristic • Hedonic Treadmill • Adaptability • Anomie, Status Seeking