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> If you don't think Germany and France sacrificed their own growth, what exactly do you think "EU convergence" means? Convergence doesn't refer to growth rate
by ekjhgkejhgk 11mo ago
> If you don't think Germany and France sacrificed their own growth, what exactly do you think "EU convergence" means?
Convergence doesn't refer to growth rates approaching, but incomes (per capita) appproaching.
It doesn't mean that the richer countries grow slower than otherwise. They might grow the same, or faster.
The claim is something along the lines of:
Without planned convergence: country G grows 2% per year starting from income of 30k/capita and country P grows %1 per year starting from income to 10k/capita. Country P will never approach country G in income/capita.
With planned convergence: country G grows 2% per year starting from income of 30k/capita and country P grows %4 per year starting from income to 10k/capita. The two countries's income per capita will converge.
Economics and counterfactuals are devilishily complicated subjects, but claim isn't complicated.
- rayiner 11mo agoBut what does any of that have to do with the EU or bureaucratic planning? It seems to me like Poland was poised to grow quickly as it transitioned from communism to capitalism with or without the EU.