Why Nations Fail is a great book that everyone has to read. Says that economic inequality is because of political institutions. Specifically, "inclusive" insti

Why Nations Fail is a great book that everyone has to read. Says that economic inequality is because of political institutions. Specifically, "inclusive" institutions where everyone can become part of the economic system. Anyone can be a government supplier under the same terms, everyone can start their own business under the same terms, everyone can get financing under the same terms, and everyone get the same protection to their own private property. There's a nice Economic effect called "Hume-Cantillon Effect": > Furthermore, he posited that the original recipients of new money enjoy higher standards of living at the expense of later recipients. The concept of relative inflation, or a disproportionate rise in prices among different goods in an economy, is now known as the Cantillon Effect. > ... the rate of interest was determined by the supply and demand on the loanable funds market—an insight usually attributed to Scottish philosopher David Hume. https://en.m.wikipedia.org/wiki/Richard_Cantillon#Monetary_theory https://en.m.wikipedia.org/wiki/Richard_Cantillon#Monetary_t...