And that is backwards thinking. The undeveloped countries catch up to more developed countries, but not more. If they get too expensive, another exploited country is needed.
The West had it fastest growth during a time when inequality was relatively low and taxes high - 50s to 70s.
If they get too expensive, another exploited country is needed.
That’s my point.
Western countries had the fastest growth during those two decades due to a post-war boom. ie. Workers were glad they were no longer being sent to die and the future looked bright.
The study you linked isn’t conclusive and even mentions in the abstract that different measures could yield different results.
The results it found might not hold true everywhere because it uses data from places where poverty is very high, meaning that the conclusions may not be as broadly applicable as they might seem at first glance.
There are other issues with it surrounding data quality as there often are with economic studies and as such they shouldn’t be held in the same regard as scientific ones.
But more fundamentally, capitalism works by paying workers less than the value of what they produce, thus extracting surplus value from their labour. That is what I was getting at with my original point.
And that is backwards thinking. The undeveloped countries catch up to more developed countries, but not more. If they get too expensive, another exploited country is needed.
The West had it fastest growth during a time when inequality was relatively low and taxes high - 50s to 70s.
In case you want sources: https://link.springer.com/article/10.1007/s00181-021-02152-x
Just search “inequality gdp growth” you can find a lot of sources disagreeing with you.
That’s my point.
Western countries had the fastest growth during those two decades due to a post-war boom. ie. Workers were glad they were no longer being sent to die and the future looked bright.
The study you linked isn’t conclusive and even mentions in the abstract that different measures could yield different results.
The results it found might not hold true everywhere because it uses data from places where poverty is very high, meaning that the conclusions may not be as broadly applicable as they might seem at first glance.
This source, which I found searching for “inequality gdp growth”, explores that further: https://link.springer.com/chapter/10.1007/978-3-031-59858-6_19
There are other issues with it surrounding data quality as there often are with economic studies and as such they shouldn’t be held in the same regard as scientific ones.
But more fundamentally, capitalism works by paying workers less than the value of what they produce, thus extracting surplus value from their labour. That is what I was getting at with my original point.