The always insightful Arnold Kling writes today about Africa, and has a link to one of his old posts What Causes Prosperity?. [You have to love the internet, and how a recent article points to an old one you missed but would like: great for readers and writers.] Kling suggests there are three "ethics" necessary for growth: Work, public service, and learning. Describing the Work Ethic, he notes:
The work ethic will exist if and only if people feel that work is fairly rewarded. If instead it becomes evident that rewards accrue to those who steal, deal in black markets, or serve a warlord or clan leader, then those behaviors will be more widespread than work.I think this was expanded upon nicely by Michael Barone in his piece A tale of two nations. Barone notes that Americans are comparatively incompetent 18 year olds, but immensely productive and creative 30 year olds. Why? Barone suggests it's hardball capitalism:
Because from the age of 6 to 18, our kids live mostly in what I call Soft America--the part of our society where there is little competition and accountability. In contrast, most Americans in the 12 years between ages 18 and 30 live mostly in Hard America--the part of American life subject to competition and accountability; the military trains under live fire. Soft America seeks to instill self-esteem. Hard America plays for keeps.I think that's very true, and have noted it in my own life. I was a rather uneducated--but happy and energetic--18 year old. I now consider myself very well educated and productive, mainly due to preparation for, and feedback from, the marketplace.
HedgeFundGuy - am 2005-07-08 16:53 - Rubrik: economics