Arnold Kling  

I Believe These Are Related

Friday... David Autor Signals Wit and In...

1. Timothy Taylor on the question of why different production techniques are used in different countries.

2. Don Boudreaux on how capital cannot just be reduced to its physical characteristics.

I think that (2) provides insights that would help with (1).

Comments and Sharing

COMMENTS (2 to date)
Bryan Willman writes:

Here's another possibly related thing, which sometimes troubles me.

Observers on the ground in, say, Africa, report that the social dynamics w.r.t. wealth are different. In particular, that if someone gets money, they will be instantly obligated to give all or most of it to relatives.

If there is no dynamic of "keeping something for oneself" how can there be savings? If there are no savings, how can the ratio of capital to labor ever rise?

[But of course, we must not be deluded into thinking any small set of principles can explain why some states fail or are poor.]

Shayne Cook writes:

Thank you for this - to both Arnold and Don.

I just downloaded Capital and its Structure (Ludwig Lachmann) and am well into it.

Comments for this entry have been closed
Return to top