“Why Nations Fail” by Daron Acemoglu and James A Robinson

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  • England got to the American colonization party late
  • The Spaniards colonized highly populous areas giving them coercive labor
  • The English colonized sparse areas that required everyone to walk
  • Broad political power is important for a functional democracy
  • Democracy is not important for wealth but respect of private property is
  • “State” is “legitimized violence”
  • The black plague created a critical juncture that allowed Western Europe to break serfdom while Eastern Europe reinforced it
  • Extraction can create short-term growth by redeploying resources; however, it cannot sustain this growth through reallocation
  • Maize stores well
  • Conflict and property resolution is more complex when you can’t freely move
  • Allowing upward mobility enables new blood and ideas
  • Creative destruction is important to drive innovation
  • There needs to be incentives to adopt changes
  • Sometimes changes are rejected because they fear empowering those who rule over them
  • South East Asia countries reverted development as a result is Dutch conquest
  • When the external slave markets dried up, slavers redeployed to internal use
  • Political centralization with plurality is how you maintain growth
  • Modernization does bring growth if it enables creative destruction