When a Scottish businessman named James Wilson founded The Economist 160 years ago this summer, he used the conventional means of circulating a prospectus. Yet the prospectus itself was far from conventional. But most of the document consisted of a single, 14-page article, a polemical essay about the economic, social and political benefits of free trade. Such words could easily have been written today, especially given that economic and technological progress seems at present to be held hostage by the uncertainties and insecurities of war, terrorism and other destabilizing forces. 1843 was a time of entrenched protectionism, symbolised by the hated "corn laws" which restricted imports of foodstuffs and so raised the cost of living. By contrast today, in 2003, the cause of liberal capitalism and poverty reduction has just had its best few decades in the whole of history.In both periods, the consequences of a technologically driven mania cast a shadow over politics and economics: now, it is the bust following the boom of the "new economy" of information technology and the Internet. Economic crises in the poor world have reminded people of capitalism's inherent instability. Unemployment in the rich world has reminded people of its inherent tendency to create inequality and of the disruptive effect on existing jobs when poor countries such as China or India succeed in growing richer. And if it comes to pass, the principal culprit is likely to be the abuse in recent years in the rich countries of both capitalism and democracy that coincided with, and was greatly reinforced by, the "new economy" boom of the late 1990s.