3 ms·
The devastating effect a natural resources boom can have on an economy are known as: http://en.wikipedia.org/wiki/Dutch_disease http://en.wikipedia.org/wiki/Du
by revelation 14y ago
The devastating effect a natural resources boom can have on an economy are known as:
http://en.wikipedia.org/wiki/Dutch_disease http://en.wikipedia.org/wiki/Dutch_disease
- msrpotus 14y agoAlmost identical to the financialization that's been going on with Wall Street.
- dredmorbius 14y agoUsually termed "rent-seeking". I'll have to think a bit on whether / how this is related to Dutch disease. Off the top of my head, though, DD is exploiting a resource to create, but concentrate, wealth. RS is exploiting a market anomaly or manipulation to create a self-directed wealth stream, though often or usually decreasing overall societal wealth in the process. DD is economically beneficial activity with an inequitable distribution of gains. RS is economically harmful activity with an inequitable distribution of gains. https://en.wikipedia.org/wiki/Rent_seeking https://en.wikipedia.org/wiki/Rent_seeking
- dredmorbius 14y agoWith some notable mitigations, particularly in the case of Norway, as noted in the Wikipedia article.