Does the Bitcoin frenzy make any sense at all?
Date Written: 2018-01-03
Year Published: 2018
Resource Type: Article
Cx Number: CX21884
The author explains how the strange story of a "crypto-currency" reveals the underlying irrationality of a system that is designed to work for the rich only.
Defenders of capitalism are fond of saying--often in a smug, patronizing way -- that critics of the system simply don't "understand how markets work." If only we'd just let capitalism work its magic, perfectly efficient allocation would result -- everyone would get exactly what they deserve (and no more), and society would enjoy optimal outcomes for all.
Needless to say, this isn't the way capitalism actually works.
The obvious example to point to would be the 2007-08 global economic meltdown, but we might just as well reference the fact of stagnant real wages for workers, soaring income and wealth inequality, and steadily worsening ecological destruction, to name only a few examples of capitalism's ills.