From Iron Fist To Invisible Hand PDF Download

"Market forces are often criticized as being inherenty unstable and unable to sustain themselves, ultimately failing of their own accord. It is widely held that they are constantly beholden to fits and starts -recessions, depression and stagnation - and need state aid or stimulation to restart themselves. However, this is a fallacy that has been ingrained into the mind of the populace ever since Karl Marx became prominent. In actuality, nearly all of the problems arising within markets are due to the purposeful economic interventions of state officials seeking to exercise their power. To outline why this is the case, this paper will analyze a wide range of state policies and examine why the subsequent negative reaction within the market took place. The three periods under scrutiny are the macro economy of the Soviet Union under Lenin and Stalin, and the United States economy during the Great Depression and 2008 financial crisis. The suffering that was endured by the populace during each period will illustrate why it is the state that causes massive economic disorder- not the market. These results are important because they show that the market is a well functioning system when left to its own devices, but will always dislocate and self-implode when state policies interfere with its natural processes"--Abstract.