The Fairytales of Economics | Marxism Research Network

The Fairytales of Economics Content Summary The Fairytales of Economics employs a relaxed prose style to reveal the lack of intellectual rigor within the academic mindset of Western economics to its readers, skillfully introducing relevant theories for comparative analysis. Through The Fairytales of Economics, readers can appreciate the joys of dialectical thinking and the true essence of economic theory while sharing a knowing smile.

Table of Contents Preface / 1 Economics and Fortunetelling / 1 Vague and Obscure Counterfeit Goods / 8 The Trap of Tautology / 13 Blowing Hot and Cold ^[1] / 17 The Heavenly Dog Devouring the Moon ^[2] / 22 A Point that Cannot Be Measured / 26 The Selfish Gene / 30 Financial Reflections on Confucian Culture / 36 The Abundance and Scarcity of Goods and People / 40 The Logic of Lack / 45 Housing Allocation at the University of Hong Kong / 51 One Game, One Dream / 56 The Rich Man’s One Dollar / 62 Diamonds, Water, and Apples / 67 The Equilibrium of Contradiction / 75 The Missing Banknotes / 81 America’s Red Apples / 86 The Giffen Goods of Poverty / 91 Watermelons and Insurance / 97 Interest and Usury / 101 Income and Wealth / 107 Investment and Consumption / 114 The Professions of the Smart and the Beautiful / 120 Eager for Quick Success and Instant Benefits ^[3] / 124 The Land Rent of Woodlands / 128 The Cost of Watching a Free Movie / 132 Steak with Baked Potatoes / 137 The Rent of a Singing Star / 143 Windfall Profits / 146 Marginal Product and Marginal Appetite / 150 Costs After Business Operations / 154 Transaction Costs of the Buffet / 158 The Poor Man's Bid / 163 The Monopoly of Intellectual Property / 168 The Behavior of Prices / 173 Information Costs of Gambling on Stones ^[4] / 180 Taxes and Tolls on Highways / 184 Coase’s Law of Might / 189 Housing for Workers / 194 The Nature of the Joint-Stock System / 200 The Dissipation of Rent in Great Lake Fishing / 204 The Non-Increase of Ticket Prices During the Spring Festival Travel Rush ^[5] / 209 Housing Prices Under Real Estate Taxes / 214 The Manager Who Shines Shoes / 219 Labor Contracts / 224 The Reasons for Unemployment / 231 The Origin of the Firm / 235 Who Shall Regulate the Family and Rule the State? ^[6] / 240 Main References / 247

Notes

↩ [1] 翻云覆雨 (fān yún fù yǔ): Literally "producing clouds with one turn of the hand and rain with another." This idiom originates from a poem by Du Fu and refers to people who are fickle, capricious, or manipulative in their social and political dealings. In an economic context, it suggests internal inconsistencies or the arbitrary nature of Western economic modeling.

↩ [2] 天狗吃月亮 (tiāngǒu chī yuèliàng): A traditional Chinese mythological explanation for a lunar eclipse, where a celestial dog swallows the moon. It is used here as a metaphor for unscientific or superstitious explanations that mask the actual material mechanisms of a phenomenon.

↩ [3] 急功近利 (jí gōng jìn lì): An idiom meaning to seek narrow, immediate success and benefits while ignoring long-term developmental needs. In Chinese Marxist discourse, this is often used to criticize the short-termism inherent in capitalist accumulation.

↩ [4] 赌石 (dǔ shí): "Stone gambling," a practice particularly common in the jade trade where buyers purchase raw, un-cut boulders based on their exterior appearance, betting that the interior contains high-quality jade. It is a metaphor for high-risk speculation and extreme information asymmetry.

↩ [5] 春运 (chūnyùn): The "Spring Festival travel rush," the period of high transportation demand around the Chinese New Year. In Chinese economic debates, the question of whether ticket prices should "float" (increase) according to market demand is a classic point of contention between neoliberal market efficiency advocates and those prioritizing social stability and the "mass line."

↩ [6] 齐家治国 (qí jiā zhì guó): Part of a famous sequence from the Great Learning (大学), one of the Confucian Four Books: "Cultivate the self, regulate the family, rule the state, and bring peace to all under heaven" (修身齐家治国平天下). The author uses this classical allusion to discuss the governance of economic units (the "household" or firm) and the national economy.