A Unified Theory of Capitalist Development
Why do Third World countries remain poorer and more unequal than the First World countries remain poorer and more unequal than the First World countries after almost two centuries of capitalist development? Standard economics has been able to explain only partially this basic question. The full scientific explanation requires an epistemological rule and a valid economic theory. This book adopts the Popperian epistemology of falsification and proposes a theory that departs in many meaningful ways from standard economics. In particular, the new theory assumes that the capitalist system is composed of different types of capitalist societies. This new theory has the double task of explaining each type of society (the First World and the Third World), taken separately, and then to explain the capitalist system as a whole. The proposed theory succeeds in providing this required unity of knowledge; hence it is called A Unified Theory of Capitalist Development. What are the actions needed to reduce the overall inequality (within and between countries?) of the capitalist system? The solution to the inequality conflict within the current generation and between generations is the fundamental economic problem of our time. The implications for more innovative public policies to solve this problem are also discussed in the book.