Monday, 6 December 2021

The 'upper-income trap'

"I'm legitimately wondering if, in future decades, we'll be writing about an 'upper-income trap,' wherein wealthy economies stop growing due to increased red tape, cost disease, social unrest from a highly-educated populace, rent seeking, and anti-industrial sentiment.
    "Because let's be clear: societies can become a lot more affluent than the US is now, and growth doesn't HAVE to decline after a country is industrialised. But for some reason we act as if stagnation is inevitable.
    "The US and all other wealthy economies have massive growth potential that is unrealised due to rent-seeking cartels, anti-industrialism, ineffective government administration, and bad policies on immigration, trade, cabotage, IP, land use, and R&D spending. This unrealised, and now unexpected potential is the 'upper-income trap'."
          ~ from a tweet thread by @DurhamFella [slightly cleaned up from Twitterese]

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