I've often referred to a theory of business cycles that was first described by the Austrian Joseph Schumpeter, but amplified by contemporary American Thomas Sowell. Both are brilliant economists who have described in mathematical detail how free markets produce the most wealth and well-being for society, including for those at the lower end of the financial spectrum.
It is their explanation for why things go wrong, however, that I find most illuminating. Both Schumpeter and Sowell write about "intellectuals" who have academic credentials of some sort but are lacking in knowledge that would make them particularly valuable to the market. Incapable of commanding significant wealth and status through voluntary market mechanisms, these intellectuals resent the wealth of more-successful people. As a result, they envy and resent the entire market system that has failed to reward them as they believe they deserve to be rewarded.
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Original Page: http://sgtreport.com/2012/02/the-ongoing-recovery-from-the-folly-of-intellectuals/
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