Acemoglu and Robinson set out to answer the question why are some nations rich and others poor? The book begins by analyzing Nogales Arizona and Nogales Mexico. In essence this is a city with a national border that divides one portion of the city from the other. The United States side of Nogales is far more prosperous and safe than the Mexican side. The authors attempt to explain why this is the case. Another example given is North and South Korea.
The authors next go through a few theories regarding why some nations succeed and others fail and explain why each of those theories is wrong. They included the geography hypothesis, the culture hypothesis, and the ignorance hypothesis.
The authors state “to understand world inequality we have to understand why some societies are organized in a very inefficient and socially undesirable ways.” They continued “poor countries are poor because those who have power make choices that create poverty. They get it wrong not by mistake or ignorance but on purpose.”
The authors outline numerous historical examples of successful and unsuccessful nations. They argue that successful nations have inclusive political and economic institutions and that poor nations have extractive political and economic institutions. One of the ways to secure inclusive institutions is to have secure property rights. They note that communism is extractive and it’s abhorrence of private property will always lead to poverty.
Innovation is necessary for wealth generation. Inclusive institutions allow for the creative destruction necessary for innovation and countries that are extractive stifle creative destruction.
This was a well researched book with numerous examples. At times it seemed repetitive. The book jumped from time period to time period and might be in Ancient Rome on one page and 18th century Europe on the next. I found their conclusion weak but overall it was a good book.
Overall I give this book 4 stars out of 5.
"We will prove that there is no problem too large for government to solve, and no concern too small for it to care about"
Zohran Mamdani
For 45 minutes Alexander rode in a helicopter while receiving a crash course on the historic sites of New York City. The ability to hover in the air while moving 110 miles per hour was surreal. He began to wonder if perhaps he had died on the battlefield and was now in some level of the afterlife. Everything was too extraordinary to believe.
As they were nearing the conclusion of their flight Alexander examined the topography below with a general’s eye.
“Where are your city’s defenses?”
“What are you talking about?” Sammy responded.
“What would prevent an invading army from laying siege to your city?”
“No one would ever invade us.”
“Such hubris makes it likely at some point.”
“The oceans protect us from our enemies and Canada is our ally. It would never happen.”
“Fascinating. I bet I would find a way to do it.”
“But why would you want to.”
“It is my destiny to create empires. This city would have to be conquered and rolled into my empire.”
“The United States Army is too powerful. You would never stand a chance.”
A half dozen battle plans were floating through his mind.
“I think I could do it.”
“Who are you?” Sammy asked.
“I already told you. I am the great king ...
