1. Karl Polanyi’s argument in The Great Transformation that societies can only handle a certain amount of change before they revolt and demand protection. Social changes will come, but the pace of change dictates how much misery will be inflicted on the losers.
2. The absence of a clear definition of market in standard economics.
3. The failure of economic theory to incorporate the impact of raw economic power, including fraud and corruption.
The text for this post is a 1993 article in Foreign Policy by Paul Krugman titled The Uncomfortable Truth about NAFTA: It’s the Foreign Policy Stupid.
Krugman begins by insulting the anti-NAFTA people.