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Organization & Environment
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Myths of the Market

Economics and the Environment

Michael Perelman

California State University, Chico

Adam Smith's farmworker paradox reflects the fact that those who do the most essential work in society earn the least, just as his diamonds and water paradox revolves around the low valuation that markets place on essential resources. This article explores the perverse economic logic that leaves markets to run roughshod over both humanity and nature. It also explores how economists either attempted to come to grips with or, more commonly, sought to either avoid or justify this phenomenon.

Key Words: resources • scarcity • economic theory

Organization & Environment, Vol. 16, No. 2, 168-226 (2003)
DOI: 10.1177/1086026603016002002
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