Sarah C. M. Paine - WW2, Taiwan, Ukraine, & Maritime vs Continental Powers
Dwarkesh Podcast
The Impact of Compounding and Sanctions on Economic Growth
Compounding plays a crucial role in economic growth, as illustrated by the example where a 1% difference in US economic growth each year could have led to the US having a lower GDP per capita than Mexico. Sanctions may not result in immediate changes in behavior, but they effectively suppress growth over time, making the imposing country stronger and the target weaker. This can be seen in the contrast between North and South Korea, showing the powerful impact of sanctions over generations.
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