In contrast to the inclusive institutions that we have now.
Inclusive institutions guarantee freedom of press, property rights, and encourage investments.
Extractive institutions guarantee wealth for those in control at the top but stifle all development for everyone else.
Examples of extractive institutions include:
1. Rome post republic, in the empire.
2. China now and during the heyday of the empire.
3. Spain at the peak of its colonization.
The key is that all these institutions were design to extract value, not to create value in the long term.
Hallmarks of this include:
1. Banning or mothballing of innovative production techniques because they might cause creative destruction.
2. Crony capitalism instead of merit based promotion.
3. Government monopolies on information.
The key question is: How far will Trump go?
Will our current inclusive institutions stop him?
^Day 191/90 149 words