⛓️ Middle Income Trap | Caught in a trap?

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Күн бұрын

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@burndly 2 жыл бұрын

Middle Income Trap happens when a developing, low-income country becomes rich enough to adopt extensive, Western-style economic welfare policies. The statist hydra becomes a permanent drain on society's resources, supported by elevated taxation and more debt, both of which hurt productivity. Western countries didn't adopt welfare economics immediately after the industrial revolution, with their economies staying relatively laissez-faire for the most of the 19th century. If one wishes to join the rich West without having natural resources to "buy out" the rich lifestyle (like oil countries sometimes can), they can't fall into the welfare-bureaucratic trap. But it seems impossible to do so in a liberal democracy. Meanwhile, countries which aren't liberal democracies most often have pseudo-kings more interested in appropriating Western "international aid" for themselves and waging war, rather than in helping their countries grow.

@shreyvaghela3963 2 жыл бұрын

Disagree. Middle income trap happens because of lack of productivity. That's the real reason. Lower tfp means lower growth. End of atory

@my_other_side473 Жыл бұрын

You are completely false. Most Asian Countries trap in MIT are following the Japan, Korea, Taiwan, Singapore, Hong Kong strategy. Lmao.

@jebremocampo9194 2 жыл бұрын

Here in the Philippines, I think it is due to too much red tape, bureaucracy, and excessive legislations. Although I do not believe in the "trap" but rather a bogging down of the economic growth due to the accompanying legislations that follow when economies begin to grow

@shreyvaghela3963 2 жыл бұрын

Phillipines haa way more problems than just that.

@hunterblake5911 2 жыл бұрын

Philippines is barely in the middle income trap though it's per capita status is still considered a lower middle income country it needs to transition into an upper middle income first.