Sunday 28 September 2014

Competition is the lifeblood of an economy


I like this article. Not only because it very clearly intersects macro and micro economy (and we all know how so many economists tend to consider themselves in only one field, forgetting how both of them are actually key for most of the analysis), but because it underlines the importance of competition for the development of a western economy. The under note is really simple - if an economy over invests in non-transactionable goods, it is doomed. It is the stimulus of competition on transactionable goods that ensures the progress and productivity that stimulate sustainable growth. Period.