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I agree that economic growth outweighs anything else. But why would funding companies be the best way to generate the highest economic growth? There are many o
by mdemare 18y ago
I agree that economic growth outweighs anything else.
But why would funding companies be the best way to generate the highest economic growth? There are many obstacles that prevent economic growth, especially in poor countries. Examples are high child mortality, malnourishment, corruption, lack of any kind of (micro-)credit, lack of education, tariffs, red tape, etc.
Taking away such obstacles can do very much for economic growth. The main advantage of funding companies is that their profits are returned to the investors.
E.g. the 1846 repeal of the Corn Laws had a much greater positive effect on economic growth in Britain than any investment in specific companies.
- pg 18y agoReally? Are you sure the repeal of the Corn Laws had more effect on economic growth than Boulton's investment in Watt? I'd be reluctant to claim that.
- mdemare 18y agoLet me try to make the case: The repeal of the Corn Laws led to a massive flow of people to the cities, providing much needed labour to fuel the industries there. And by lowering the price of food, the entire country people had more money to spend on other goods. It also created a bigger market for the surplus of grain that the U.S. was able to produce, which gave a huge boost to their economy, and allowed it to continue to absorb enormous numbers of immigrants. Also, the repeal of the Corn Laws became a landmark for the free trade movement, leading to a more efficient division of labour between states that gave a huge boost to economic growth that continued throughout the 19th century.