Nobel Prize in economics awarded to trio for explaining why some nations are rich and others poor

Discussion in 'Economics' started by gwb-trading, Oct 14, 2024.

  1. zdreg

    zdreg

    America was made great by the founders of the US who wrote the constitution and the bill ofrights. Neither document could get passed nowadays. Deviating from these documents is the reason that over time US is becoming a weaker nation both politically and economically .
     
    #11     Oct 14, 2024
    Primal Trader likes this.
  2. newwurldmn

    newwurldmn

    are you referring to the 3/5ths clause?
    Or the first amendment?
    Or the 18th and 21st amendment?
    Or the 22nd amendment?
     
    #12     Oct 14, 2024
  3. zdreg

    zdreg

    3/5 clause was made null by the end of slavery
     
    #13     Oct 14, 2024
  4. maxinger

    maxinger

    Why are some nations rich and others poor?

    You can get the answers from the economic textbooks or YouTube.

    Don't need to give a Nobel Prize.
     
    #14     Oct 14, 2024
  5. DaveV

    DaveV

    America was made great by two factors - a) A massive amount of fertile, undeveloped land filled with natural resources; b) Slavery. At the height of slavery, the total value of all the slaves was higher than all industry, all banks and all railroads, COMBINED.
     
    #15     Oct 14, 2024
    trader221 likes this.
  6. mervyn

    mervyn

    while the bill of rights is inspirational writings, orginal sins from the old europeans all the way to ww2, were heavy.

    lyndon johnson is probably the most underrated president. all the "inclusivities" weren't started until 50-60s.
     
    #16     Oct 14, 2024
  7. TrAndy2022

    TrAndy2022

    It does not explain all the growth gap I would say. So climate does also matter. In Africa there is the big heat, where workers cannot do normal work in the middle of a day for several hours because it is too hot. Also it is shown that big heat reduces the speed of brain cells, so even mental work and effectiveness is reduced. But of course the political system seems to be at least one of the big driver. Another point is how much is effectively in the infrastructure invested from the government and how much are the tax rates. Because we know that the return of government spending are far less than private investments, so with overall lower taxes especially in the long run, the growth can be far bigger in a country with not so much surpressing private activities. There is a trade off here what kind of taxation is the most effective one, so that government does function but there is enough room for private growth. Not only the magnitude of tax rates does matter here. For example if taxes are not collected every year especially for high growth earners in the private sector then those can accumulate gains into their own companies to make much higher returns. So if they got taxed every 5 years or so, or with any other kind if similar mechanism, that could also easily explain any growth gap here (of course if it is applied by any country). So here is a lot of more research to be done. Especially on the taxation side and not only from the political system. That might be the strongest overlay factor but for sure it does not explain all. And there is the question how to make a current political system, which found optimal, even much more better than currently. So many more questions needed to be answered here. Especially AI can do economic simulations on a big scale with many factor simultaneously which otherwise cannot be calculated. I am sure there will be more research here done now with the given prize. I am pretty sure others will find many other factors that will explain that country growth gap longterm. So for me the found results are just the dip of an iceberg in this year economic nobel prize.
     
    Last edited: Oct 14, 2024
    #17     Oct 14, 2024
  8. ipatent

    ipatent

    They left out the most important factor, which is median IQ.
     
    #18     Oct 14, 2024
  9. ktm

    ktm

    So the prize winners define democracy as landowner rights and enforcing the rule of law? Don't let the people claiming to want to "save democracy" here catch wind of that.
     
    #19     Oct 15, 2024
  10. Too bad they couldn't explain why the red states are such shitholes.
     
    #20     Oct 15, 2024