2 ms·
This is a really interesting take. Although more capital, in theory, can just easily be made - if the incentives are not in place - it appears to have the same
by onlyrealcuzzo 4y ago
This is a really interesting take.
Although more capital, in theory, can just easily be made - if the incentives are not in place - it appears to have the same problems as getting past the agricultural stage.
So it seems like a parallel to me why advanced economies might stagnate.
- epistasis 4y agoThis is addressed in later parts of the book, and I really only focused on the first part in my comment. How to keep capital 1) maximally productive, rather than rent seeking, and 2) keep capital from fleeing, are all about what incentive structures the government sets up. And for every single industrial country, government policy has been key to growing infant industries into functional, independent, adult economies. At every stage of economic development, the rules seem to change for of which policies enable or maximize economic growth. (I fear the US is starting to flub it now, but they may still save themselves!!)