Diagram Of Shoe Parts No historical period is similar both in economic policy in the decade from 1990 as 1840

e; init.d development, but also bring plenty of speculative frenzies, projects and practices that attempt to make the industry behave as normal cardinal industries paradigm. The questionable Enron accounting practices are practically the same as Thorstein Veblen criticized hundred years earlier. In the late nineteenth century American Leather Corporation tried to raise the value of their shares to the same level as the Steel Corporation, something like the Microsoft of its time, in late twentieth century many companies tried to catch up with Microsoft, but failed. In both historical periodsoryx acted as a stock incentive euphoric wanted to believe in the horn of plenty, and for a time was real simply because many people believed in him. But producing leather was not the same that produce steel, the same way that few companies have the market power of Microsoft, and in many cases there was a tragic outcome.

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Extraordianrios popular delusions and the madness of crowds" (Extraordinary Popular Delusions and the Madness of Crowds) is the title of a book on disasters bursa ; useful publiced by Charles Mackay in 1841. That same year Friedrich List published his book Das nationale Sustem of Political Ökonomie, in which he argued that to do no more poor to poor COUNTRIES, free trade should be achieved slowly and systematically ; policy. Just as in the popular consciousness such periods expected to pass through the stock exchange quotations roof, whatever the industrial sector in question, it also creates the illusion that all parallel can be made more rich as long as the market is granted a total iberty. John Kenneth Galbraith called it "totemism the market." During the preceding period, las decades of 1840 and 1990, spread the faith stronger than ever has been in the market as the only way to ensure armoníay development. Dácada In 1840, this phenomenon was called "free trade" and now called "globalization." For a long period of time the stock market did not appreciate the differences between the huge increase in productivity and dominance in the market for companies who headed the new techno-economic paradigm, such as U.S. Steel and Microsoft, and the characteristics of industries in mature sectors such as production securcute n leather and other low-tech. Even now, politicians around the world seem to believe that was the opening of the economíay their free trade, rather than its technological advances, which have enriched the Silicon Valley companies.

That illusion was catastrophic for the small investors who had invested their life savings in projects that were nothing more than bubbles. The parallel iusión "free trade" is equally harmful to people in countriesestimated that the European Community agreed to the entry of Spain in the 1980's.

The historical paradox that can be detected in all this is that it is precisely during the periods in which new technologies are substantially changing the society economíay - like the steam in the 1840 and information technology in 1990 - when economists give new fuel to theories based on trade and barter in which technology Alas the new knowledge has no place. Might say, to & ee; to internationally competitive were later dismantled by the shock therapy of a free trade too sudden. These countries (later examine the example of Mongolia) was de-industrialized and fell again in increasing poverty. If there's something that the theorists of the past as James Steuart and Friedrich List had warned it was against sudden changes in the trade regime. Production systems need time to get adjusted. Continental Europe was not fooled by attempts to English during the nineteenth century remain the only industrialized country in the world or its gospel in as tariff of up to one hundred percent. Although most immigrants were or had been farmers, they were the main beneficiaries of the existence of an industrial sector, as Abraham Lincoln said: "I can not guess the reason, but high tariffs make everything they buy the farmers find it cheaper. "