12 juni 2005

Risky but growing (The Flemish Beerdrinker)

Paul Krugman wants a society with more economic security. Such a society that is less risky will also be less mobile, Michael Mandel of Business Week responds. Is this bad? Well of course a little bit of bad luck will not put one into poverty. On the other hand, upward mobility is impaired aswell. That’s what Mandel is trying to prove. No upward mobility without downward mobility. There’s another thing. A society also needs people that wants to move upwards. They are risk takers and entrepreneurs. Without them an economy will not grow, or grow less than otherwise. And in a growing economy there is more money to be spend on the unlucky ones. We can help the poor better in a risky but growing economy than in a secure but stagnating one.

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