2 ms·
> we seem to have some serious capital misallocations People are too zealous about the virtues of market economy to see plain truths staring them in the face.
by geysersam 2y ago
> we seem to have some serious capital misallocations
People are too zealous about the virtues of market economy to see plain truths staring them in the face. The China example is excellent. There's no lack of investment opportunities with huge roi (industrializing, infrastructure, etc parts of the world not having western living standards) but the market is unable to prioritize them above hype and incremental improvements for already well off populations.
- s1artibartfast 2y agoI dont think there is a conspiracy where all capitalists refuse obvious profits that can be made in the 3rd world, and not one of them is greedy enough to go for it. Instead, I think there are some very real barriers to returns in these locations making them much less profitable and worse investments.
- geysersam 2y agoYes, there are barriers that can not be overcome by rational actors in market. That's a systemic problem. It's not a conspiracy, just bad economics.
- s1artibartfast 2y agoEconomics is just economics. It is bad policy which leads to bad market incentives and undesirable equilibrium.
- ffgjgf1 2y ago> The China example is excellent How to mismanage your real estate sectors even to a higher extent than Western countries were ever able to?