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The best way to boost the economy is to redistribute wealth downward, as poorer people tend to spend a higher proportion of their income.
Ha-Joon Chang
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Ha-Joon Chang
Age: 61
Born: 1963
Born: October 7
Economist
Seoul Teukbyeolsi
Tend
Spend
Higher
Redistribute
Wealth
Downward
Economy
Poorer
Best
Boost
Way
Proportion
People
Income
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The Korean economic miracle was the result of a clever and pragmatic mixture of market incentives and state direction.
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Democracy is acceptable to neo-liberals only in so far as it does not contradict the free market.
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Since the 1980s, we have given the rich a bigger slice of our pie in the belief that they would create more wealth, making the pie bigger than otherwise possible in the long run. The rich got the bigger slice of the pie all right, but they have actually reduced the pace at which the pie is growing.
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95 percent of economics is common sense made complicated, and even for the remaining 5 percent, the essential reasoning, if not all the technical details, can be explained in plain terms.
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[Good managers] know that people have 'good' sides and 'bad' sides and that the secret of good management is in magnifying the former and toning down the latter.
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Low inflation and government prudence may be harmful for economic development.
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Countries are poor not because their people are lazy their people are 'lazy' because they are poor.
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The free market doesn't exist. Every market has some rules and boundaries that restrict freedom of choice. A market looks free only because we so unconditionally accept its underlying restrictions that we fail to see them.
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Self-interest, to be sure, is one of the most important, but we have many other motives - honesty, self-respect, altruism, love, sympathy, faith, sense of duty, solidarity, loyalty, public-spiritedness, patriotism, and so on - that are sometimes even more important than self-seeking as the driver of our behaviors.
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History is on the side of the regulators.
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A well-designed welfare state can actually encourage people to take chances with their jobs and be more, not less, open to changes.
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The foundation of economic development is the acquisition of more productive knowledge.
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People 'over-produce' pollution because they are not paying for the costs of dealing with it.
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The days are over when technology can be advanced in laboratories by individual scientists alone. Now you need an army of lawyers to negotiate the hazardous terrain of interlocking patents. Unless we find a solution to the problem of interlocking patents, the patent system may actually impede the very innovation it was designed to encourage.
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Between the Great Depression and the 1970s, private business was viewed with suspicion even in most capitalist economies. Businesses were, so the story goes, seen as anti-social agents whose profit-seeking needed to be restrained for other, supposedly loftier, goals, such as justice, social harmony, protection of the weak and even national glory.
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Culture changes with economic development.
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Making rich people richer doesn't make the rest of us richer.
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