The Hunger Games: Could a real country have an economy like Panem’s? – Slate Magazine

Economic theory teaches us that over the long term, prosperity is driven by two factors—capital accumulation and the “Solow residual” of technology—and that of the two elements the technology is more important. Perhaps the best example comes to us from the experience of Germany and Japan around World War II. These were, before the war began, prosperous, technologically advanced societies rich in industrial capital. They had the capacity, in other words, to build the tanks and bombs and aircraft carriers one would need to mount a successful effort at global conquest. But during the course of the war, the capital stock of both countries was run down to almost nothing by massive Allied bombing. In the very short-term, this impoverished both countries, but they bounced back remarkably quickly. Knowing how to build a prosperous society, in other words, was more important than actually having the physical stuff.

via The Hunger Games: Could a real country have an economy like Panem’s? – Slate Magazine.

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