Economic Growth. Economic Growth Is A Topic Constantly

Economic Growth Economic growth is a topic constantly discussed in Why Nations Fail by Daron Acemoglu and James A. Robinson and Saving Capitalism by Robert B. Reich .The authors in both books seem to believe that we live in a society in which economic growth is not at its finest, but there is still hope. More detailed, Daron Acemoglu and James A. Robinson blame extractive institutions for the slow growth because in this occasion the political and economic systems are structures in a way to benefit the elite by extracting resources from the rest of the society . Similarly Robert B. Reich states that those who control an increasing share of the wealth also have gained growing influence over the rules by which the market†¦show more content†¦More detailed countries such as Zimbabwe and Sierra Leone extractive institutions pave the way to complete state failure, by destroy the laws and the most basic economic incentives. As a result of those political and economic institutions economic stagnati on is caused and in other more extreme occasions civil wars, famines, displacements and epidemics may occur as well. However, Daron Acemoglu and James A. Robinson also state that even extractive institutions can create economic growth. The writers claim that even though the extractive institutions are using the wrong means to an end, they still encourage as much growth as possible in order to have more to extract. This growth however, can be achieved if these institutions have at least a minimal degree of political centralization. Also such event can only last in the short run. Another aspect both books agree on is the fact that the only solution to this huge problem of economic stagnation is the emergence of inclusive institutions. Robert B. Reich claims that even though in the United States extractive institutions have the upper hand, there is still hope. He states that â€Å"This vicious cycle is neither inevitable nor irreversible .† He believes that inclusive instituti ons have equal opportunities to succeed, and if that happens the economy then will blossom. He believes thatShow MoreRelatedThe Current Capitalistic Society And Its Effects On The Environment974 Words   |  4 Pagesour current capitalistic society nothing is more closely followed than economic growth. When economies are growing they are praised, but when they are not they are perceived as a failure. Growth has brought us many great technologies that have helped form the global culture that we now live in. However, there is a misapprehension among society that economic growth is limitless. In fact, it is impossible to have unlimited growth in a finite world. 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