Could any real country have an economy like Panem, the post-apocalyptic setting for The Hunger Games? Actually, yes, writes Matthew Yglesias. Economic theory says that over the long term, prosperity is driven by capital accumulation and the “Solow residual” of technology. In Panem, the government controls the populations of 12 districts with extractive economies. District 12, for example, is oriented around a coal mine manned by unskilled labor and devoid of mechanized equipment despite being a technologically advanced society. In a free market, competition would drive wages up, but the government is the only purchaser of mine labor and pays low wages. This has a trickle-down effect that keeps the rest of the district in poverty. We’ve seen this happen repeatedly in our own history. For example, European colonialists created extractive institutions in what are now Africa’s modern states. African mass resistance helped overthrow the colonialists, but in almost every case, the new elite continued the same extractive institutions for their own benefit.
The IRS also wants fraternals to have lodges, and rituals.
China Oceanwide says the deal will help ease liquidity pressure.
One possible implication is that income might not be everything.
Sponsored by Cetera Financial Group
Do you know the difference between client experience and customer service? The answer is crucial.
Sponsored by T. Rowe Price Investment Services, Inc.
The “reflation trade” appears real, but risks are still elevated.
Don’t miss crucial news and insights you need to make informed investment advisory decisions. Join ThinkAdvisor.com now!
- Free unlimited access to ThinkAdvisor.com which provides advisors, like you, with comprehensive coverage of the products, services and trends necessary to guide your clients in making critical wealth, health and life decisions.
- Exclusive discounts on ALM and ThinkAdvisor events.
- Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.
Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.