3A Simple Corn Model
45A Simple Corn Economy45Situation 1: Inegalitarian Distribution of Scarce Seed Corn49Autarky50Labor Market50Credit Market54Situation 2: Egalitarian Distribution of Scarce Seed Corn57Autarky57Labor Market58Credit Market59Conclusions from the Simple Corn Model60Generalizing Conclusions63Economic Justice in the Simple Corn Model67
4Markets: Guided by an Invisible Hand or Foot?
71How Do Markets Work?71What is a Market?71The “Law” of Supply72The “Law” of Demand72The “Law” of Uniform Price75The Micro “Law” of Supply and Demand75Elasticity of Supply and Demand79The Dream of a Beneficent Invisible Hand80The Nightmare of a Malevolent Invisible Foot84Externalities: The Auto Industry85Public Goods: Pollution Reduction88The Prevalence of External Effects91Snowballing Inefficiency96Market Disequilibria97Conclusion: Market Failure is Significant99Markets Undermine the Ties that Bind Us99
5Micro Economic Models
103The Public Good Game103The Price of Power Game106The Price of Patriarchy109Conflict Theory of the Firm111
viThe ABCs of Political Economy