"What saves a man is to take a step. Then another step." ~ C. S. Lewis
Amazing stuff Bri! There's nothing like watching an entertaining video AND feeling like you're learning something. He makes an excellent point that there are not poor countries and rich countries but poor people and rich people.I wonder if there's a way to connect that to the Solow model and convergence. Since institutions are the factor that distinguishes between conditional and absolute convergence, and, I assume, that those very rich people in the poor countries are politicians, military, high-powered business folk, they can get around the nasty institutions (trade barriers, restrictions on businesses starting and expansion, additional costs to protection) that make the distinction between economies needed. In other words, that the very rich and powerful in poor, restrictive countries live as if they are opperating in rich, free countries.Is this a crazy idea or is there something to this?
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Amazing stuff Bri! There's nothing like watching an entertaining video AND feeling like you're learning something. He makes an excellent point that there are not poor countries and rich countries but poor people and rich people.
I wonder if there's a way to connect that to the Solow model and convergence. Since institutions are the factor that distinguishes between conditional and absolute convergence, and, I assume, that those very rich people in the poor countries are politicians, military, high-powered business folk, they can get around the nasty institutions (trade barriers, restrictions on businesses starting and expansion, additional costs to protection) that make the distinction between economies needed. In other words, that the very rich and powerful in poor, restrictive countries live as if they are opperating in rich, free countries.
Is this a crazy idea or is there something to this?
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