READ & DOWNLOAD Ð Power and Prosperity Outgrowing Communist and Capitalist Dictatorships

Mancur Olson ¼ 1 READ & DOWNLOAD

Will surely be regarded as his magnum opus Olson contends that governments and Prosperity Outgrowing PDFEPUB #236 can play an essential role in the development of markets Reliable enforcement of private contracts and protection of individual rights to property depend on governments strong enough not and Prosperity Outgrowing Communist and K. By a Nobel prize winning economist this text reuired for my interdisciplinary International Relations major at the College of William and Mary explains the dynamics that lead civilization to arise from anarchy the forces that cause communism and democracy outperform and euilibriums to keep in check A critical manual for any aspiring dictator or democrat

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Power and Prosperity Outgrowing Communist and Capitalist Dictatorships

Why do some economies do Prosperity Outgrowing Kindle #209 better than others How does society encourage the kind of market economy that generates continually increasing incomes How do particular styles of Power and Kindle government affect economic performance World renowned economist Mancur Olson tackles these uestions and others in what. A bit like Thinking Fast and Slow but with a lot less rambling and almost zero cross referencing in the main text this is a book that s meant to summarise a career s findings It s written by somebody who both knows a whole lot and wants to tell you everything he knows And it s written so beautifully you keep asking yourself why did I not think of that To which the answer of course is because it s only so clear once somebody has told youMancur Olson the man who explained in his youth one of the main problems of our otherwise uite solid market economy the tendency of concentrated interests such as lobbies oligopolies and unions to prevail over the interest of the silent majority spent the last couple years of his life writing this primer that sheds light on some of the big uestions in politics Here s a list of my favorite examples1 How come most countries on earth used to be run by a dictator tyrant king Answer because it beats the hell out of what was the alternative at the time namely being raided by itinerant hordes Not unlike a mafia don a Stationary Bandit had every interest in seeing his people prosper and every interest in providing them protection from roving bandits So that s the system that prevailed everywhere for a long long time2 What does it take to get rid of the dictator tyrant king once you re fed up with him Answer first a big event that upsets the applecart such as a famine or a plague or a discovery second a multitude of interests on the ground so no single successor scheme take over where the previous tyrant left off and third no external threats Daron Acemoglu goes a lot deeper in trying to explain this in his book from 12 years later but still what a beautiful summary3 How come oligopolies and concentrated interests can form and thrive when we know that even two people can sometimes not agree to collude Ah that would be because the prisoner s dilemma never occurs in nature Most economic agents who matter can talk and compare notes And they are not prisoners Hell even prisoners can get it done if the game is repeated4 If one day we achieve perfect information and zero transaction costs will the diffuse interests of the consumers the poor or the unemployed finally prevail over concentrated interests Erm probably not And that s because the basic problem will not disappear The marginal member of these groups will still do best if somebody else does the hard work for him The incentive to free ride will remainThen he moves to the meat of his book namely the dissection of why the fall of the Soviet Union did not lead to prosperity It s still a step by step series of answers to uestions Stuff like5 How come Sergei Bubka broke the world record for pole vaulting 17 times nine of those by just one centimetre Ah because under Stalinism the able and the unable got paid the same up to the fortieth hour of work but after that they got something a lot closer to market rate So the able those who could do superior work would not only a get underpaid for their first forty hours of work thereby giving the state their labor for super cheap but also b they would work as much as possible past that fortieth hour since that s the bit of their labor that got compensated well Also they could be guaranteed to gravitate toward the jobs that reuired skills My choice of example of course was meant to prove that you could go around the system Bubka could probably have set the bar fifteen centimeters higher twice rather than a couple centimeters seventeen times but that would have landed him two bonus apartments rather than seventeen6 What are the main ways to collude against the hyper extractive Stalinist regime Two mainly first you can work together with the guy right above you and the guy right below you in the chain of production to sell privately excess resources that have been allocated to your endeavor second you can work together with state run near competitors to trade with one another excess resources rather than ask for them from above7 What s the one biggest difference between Germany post WWII and Russia post Communism In Russia the main source of corruption the informal markets that dealt in the re allocation of misallocated resources not only survived the transformation intact but by definition reached into everywhere By dint of having set prices and uantities indeed by having set them wrong the system had not only given birth to a parallel informal market system for the reallocation of resources but had actually forced every single citizen to deal with this system or alternatively perish The people in charge of these informal networks continued to thrive after the transition except they no longer had anybody to fear whatsoever They could carry on their previous trade legitimately Only they knew how the system worked8 What s the difference between Russia and China post StalinMao Mao had purged all Communist party insiders during the infamous Cultural Revolution When Deng took over there was no entrenched bureaucracy of party cadres who could resist him The market reforms imposed by Deng were only resisted by elements in the very top echelons but the rank and file knew not to stand in the wayFinally Mancur Olson presents us with the big idea of his book Again it s a uestion How come market system fails in some places How come the logic of the market does not prevail everywhere When we visit third world countries it is uasi impossible not to bump in to a suk or an open market If indeed nothing can go wrong in a society that encourages mutually beneficial trading how come only some countries allow millions of mutually beneficial trades to turn into one big vibrant market clearing machineThe answer is that there are two types of markets spontaneous markets and socially contrived marketsSpontaneous markets are the ones that will appear regardless The author goes as far as to say that spontaneous markets are irrepressible Essentials will find their way to people regardless of how bad the government is regardless of how extractive a despot is regardless of how poorly the price has been set When no capital investment is necessary for the production of a good for example it will be traded as many times as necessary formally or informally until it reaches whoever needs it most Only two conditions need to be met first both parties must stand to gain from the trade and second both parties must be able to somehow enforce contracts a la limite by threatening to refrain from repeated trades So that s how come markets are ubiuitousSocially contrived markets on the other hand are the markets that need the support of the state to exist If it is essential to invest in capital such as plant and euipment or human capital or intellectual property to provide a particular good or service then it is eually essential that a government exist to guarantee those property rights And it is in the provision of the property rights which support socially contrived markets that Mancur Olson identifies the difference between rich countries and poor countriesPretty simple once somebody has pointed it out noI really really enjoyed this book

CHARACTERS Power and Prosperity Outgrowing Communist and Capitalist Dictatorships

Indle to undermine them His exploration of market augmenting governments will stand as a cutting edge work on economic growth and provide a useful framework in which to consider the Asian financial crisis and its aftermath As Susan Lee noted in Forbes his pioneering insights might have won a Nobel Prize for Olson had he lived a bit longer.. So what do you do if you re fascinated by science but are incapable of scientific rigour you re fascinated by math but you re crap at it and you re fascinated by philosophy but are incapable of thinking logically Easy become an economist


10 thoughts on “Power and Prosperity Outgrowing Communist and Capitalist Dictatorships

  1. says:

    A bit like Thinking Fast and Slow but with a lot less rambling and almost zero cross referencing in the main text this is a book that's meant to summarise a career's findings It's written by somebody who both knows a whole lot and wants to tell you everything he knows And it's written so beautifully you keep asking yourself why did I not t

  2. says:

    Both force and voluntary exchange are present in every social order The challenge of designing a successful social order in Olson's view is to give the power to make collective decisions to an encompassing interest rather than to a special interest Olson develops the idea of special and encompassing interests in the following way

  3. says:

    Like many of the books I pick up I came to this one because the author Mancur Olson was mentioned in several bookspapers I've been reading First he was mentioned in a book on lobbying I'm reading as representing a school of political

  4. says:

    Olson examines what it takes for societies to achieve economic prosperity by studying pre capitalist capitalist communist and post

  5. says:

    A deep and fascinating study of the development of power and of the resons why post Communist economies failed to live up to their promise The internal logic of Olson's theory is deeply compelling but I am afraid that his view despite its strong claims to realism is still somewhat Pollyannaish he assumes self interest and perfect rationalit

  6. says:

    By a Nobel prize winning economist this text reuired for my interdisciplinary International Relations major at the College of William and Mary explains the dynamics that lead civilization to arise from anarchy the forces t

  7. says:

    The book tries to use the logic outlined in the logic of collective action to discuss soviet politics I think the book is pretty gre

  8. says:

    Fascinating though difficult read Got me imagining what an Olsonic analysis of the current budgetdebt crisis might look like particularly given his critiue of special interests and the impossibility of rational collective action by small group

  9. says:

    So what do you do if you're fascinated by science but are incapable of scientific rigour you're fascinated by math but you're crap at it and you're fascinated by philosophy but are incapable of thinking logically?

  10. says:

    Read this book for a graduate level public choice economics course it was fairly theoretical and I discovered that after discussing concepts in class I was able to better understand the book

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