LPP 52 w Dr. Michael Munger | Is Capitalism Sustainable in America?
Let People Prosper
00:00
The Importance of Transaction Costs
Michael Wolraich: I'm glad you brought up Douglas North. It's one of my favorite economists talking about institutional economics. He says the nation puts up transaction costs in the form of impoverished financial institutions and political corruption. And so why is it that some nations prosper and others don't? Is it a lack of entrepreneurship? No, if you look at poor countries, everybody's an entrepreneur. Everybody is a side hustle. Most people don't have jobs in the traditional sense. What there isn't is the opportunity to turn entrepreneurship into value which turns into income.
Play episode from 03:56
Transcript
