What kind of freedom is necessary for economic growth?

in #money5 years ago

View this answer on Musing.io

You need free markets. Most rich countries are capitalist countries who have open free markets while poor countries have dictators or regulated markets. 

 https://www.youtube.com/watch?v=yLiVoHuBvNI 

Economic growth comes from innovation. Innovation doesn't come from governments but from individuals. Why are individuals doing this? For a monetary gain who will improve their own lives. 

The thing is, free markets are pretty efficiënt because the incentives of people are right. You have to be competitive or you are out of business because every type of business has some competitors. So efficiency is really important. 

It's one of the reasons why governments are inefficiënt bureaucracies, they don't have to make a profit. Therefore, resources are more often wasted than in a commercial setting.

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