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IMHO the Anglo Disease is directly caused by the toxic combination of compounding debt and private property, particularly in land

Why is that so specifically Anglo? As far as I'm aware, compounding debt and private land ownership are common to all "developed" economies.

Did it have nothing to do with the Dutch Disease, for instance? How did that qualify for the description a macro-economic policy mistake, on a grand scale, while the financial domination of the US/UK economies would not, if I read you correctly?

On domestic investment (Netherlands/Norway), I quite agree. Isn't there a case, though, for saying that the UK has exported natgas and financial services without adequate investment in a diversified domestic economy?

by afew (afew(a in a circle)eurotrib_dot_com) on Mon May 25th, 2009 at 07:11:30 AM EST
[ Parent ]
afew:
As far as I'm aware, compounding debt and private land ownership are common to all "developed" economies.

Big differences. The Anglo Disease countries are - by definition of "Anglo Disease", I submit - more focused than non-Anglo Disease countries on the privatisation of everything that doesn't move, and much that does. Land is only part, but the biggest part, of the problem, in that it is through claims over land that over two thirds of Anglo money/credit is backed.

The proportion of public ownership of land/property and a tradition of land/property rentals is much greater in the non-Anglo countries, particularly (say) Germany.

In that money is involved in both Diseases then yes, there is a loose connection.

The Dutch disease is about the misinvestment of the fruits of (wasting) productive assets. The Anglo Disease is about the creation of claims over productive assets and the inequitable allocation of these claims.

afew:

Isn't there a case, though, for saying that the UK has exported natgas and financial services without adequate investment in a diversified domestic economy?

Yes, the UK has pissed away a carbon windfall on unemployment benefit.

The UK has also failed to adequately tax the windfall from the intellectual and human capital represented by the City, and to adequately invest the tax they did raise.

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky

by ChrisCook (cojockathotmaildotcom) on Mon May 25th, 2009 at 07:50:37 AM EST
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