The Middle Income Trap

Nations like China or Brazil can grow wealthy by acting as a source of cheap labor for the world. By capitalizing on this, nations can build factories and employ millions of people into jobs that are going to pay them more money. The problem comes when these workers start earning too much money. This in turn means work starts to dry up and your economic boom turns into a fizzle. Barry Eichen Green is an award-winning economist who has published many papers exploring the dynamics of developing economies.