What Asia's postwar economic miracle demonstrates is that_x000D_ capitalism is a path toward economic development that is potentially_x000D_ available to all countries. No underdeveloped country in the_x000D_ Third World is disadvantaged simply because it began the growth_x000D_ process later than Europe, nor are the established industrial powers_x000D_ capable of blocking the development of a latecomer, provided_x000D_ that country plays by the rules of economic liberalism.
Interpretation
The quote emphasizes that capitalism can facilitate economic development for all nations, regardless of when they start their growth journey.
Francis Fukuyama's quote highlights the potential of capitalism as a universal pathway to economic development. He asserts that no country is inherently disadvantaged in its growth prospects due to its historical timing of economic development. Instead, if latecomers adhere to the principles of economic liberalism, they can achieve growth comparable to more established industrial nations, suggesting that the rules of the market can level the playing field for all countries, including those in the Third World.
In practice
In an economics class when discussing the growth of nations.
If people who have to work together in an enterprise trust one another it is because they are all operating to a common set of ethical norms....such a society will be better able to innovate...since the high degree of trust will permit a wide variety of social relationships to emerge.
The desire for economic prosperity is itself not culturally determined but almost universally shared
It was the slave's continuing desire for recognition that was the motor which propelled history forward, not the idle complacency and unchanging self-identity of the master
The rationale for tenure is still valid. But the system has turned the academy into one of the most conservative and costly institutions in the country. Yes, conservative: Economists joke that their discipline advances one funeral at a time, but many fields must wait for wholesale generational turnover before new approaches take hold.
If government manages to establish paper tickets or bank credit as money, as equivalent to gold grams or ounces, then the government, as dominant money-supplier, becomes free to create money costlessly and at will. As a result, this 'inflation' of the money supply destroys the value of the dollar or pound, drives up prices, cripples economic calculation, and hobbles and seriously damages the workings of the market economy.
Crony capitalism is much easier than competing in an open market. But it erodes our overall standard of living and stifles entrepreneurs by rewarding the politically favored rather than those who provide what consumers want.
The study of money, above all other fields in economics, is one in which complexity is used to disguise truth or to evade truth, not to reveal it. The process by which banks create money is so simple the mind is repelled.
I'm just saying that if you understand how the economic machine works, it just works like a machine. There are cause-effect relationships.
When you have a tax system in which most of the exemptions and the lowest rates benefit the richest, all in the name of job creation, all that happens is that the rich get richer.
The introduction of a substantial Government transfer tax on all transactions might prove the most serviceable reform available,with a view to mitigating the predominance of speculation in the United States.
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