After the Rain : how the West lost the EastVaknin, Samuel
History
After the Rain : how the West lost the East
Vaknin, Samuel
Europe, Eastern -- Economic conditions -- 1989-; Europe, Eastern -- Politics and government -- 1989-
What characterizes all those "market impeders" is that they are value
subtractors rather than value adders. Their activities generate a
reduction, rather than an increase, in the total benefits (utilities)
of all the other market players (themselves included). Some of them do
it because they are after a self-interest, which is not economic (or,
more strictly, financial). They sacrifice some economic benefits in
order to satisfy that self-interest (or, else, they could never have
attained these benefits, in the first place). Others refuse to accept
the self-interest of other players as their limit. They try to maximize
their benefits at any cost, as long as it is a cost to others. Some do
so legally and some adopt shadier varieties of behaviour. And there is
a group of parasites - participants in the market who feed off its very
inefficiencies and imperfections and, by their very actions, enhance
them. A vicious cycle ensues: the body economic gives rise to parasitic
agents who thrive on its imperfections and lead to the amplification of
the very impurities that they prosper on.
We can distinguish six classes of market impeders:
1. Crooks and other illegal operators. These take advantage of
ignorance, superstition, greed, avarice, emotional states of mind of
their victims - to strike. They re-allocate resources from (potentially
or actually) productive agents to themselves. Because they reduce the
level of trust in the marketplace - they create negative added value.
(See: "The Shadowy World of International Finance".)
2. Illegitimate operators include those treading the thin line
between legally permissible and ethically inadmissible. They engage in
petty cheating through misrepresentations, half-truths, semi-rumours
and the like. They are full of pretensions to the point of becoming
impostors. They are wheeler-dealers, sharp-cookies, Daymon Ranyon
characters, lurking in the shadows cast by the sun of the market. Their
impact is to slow down the economic process through disinformation and
the resulting misallocation of resources. They are the sand in the
wheels of the economic machine.
Public-domain text, read in full here on John Shaqi.
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