ECONOMICS 103REVIEW OF WHY NATIONS FAILDirections:
Write a 2-3 page paper in essay format answering the questions 1 and 2 below. 1.
What was the main explanation the authors gave for the failure or success of a nation in raising the standard of living of its population? Include in your answer:a. Examples of the evidence the authors provided to support their explanation and discuss whether or not it is persuasive;b. Other factors (if any) that the authors ignored that might be important. Compare to other theories that you learned about in the course or elsewhere.c. How nations can avoid failure, at least according to the authors. Assess their reasoning. What factors enhance a virtuous cycle and what factors lead to a vicious cycle?2. If the thesis of the book is true, what does this imply for the proper role of government/businesses/society? Organize your discussion around an issue/theme that interests you. Here are some suggested issues but you are welcome to think of others.a. Immigration, emigration and the ‘brain drain’ from developing countries.b. Education: should education be broad-based or should resources be concentrated on high-achieving students? Should government operate schools or allow for school choice? What level of education should be financed?c. How can the economy be more inclusive? Should government focus on income redistribution through expenditures and taxes? Work on creating a level playing field in business and employment opportunities?d. How large should the government be? Should it charge taxes to provide health care and retirement income for everyone or only those who cannot work and accumulate savings themselves?e. Regulations heavily influence business and employment opportunities. What criteria should regulations meet? How can corruption in design and enforcement be minimized? Specific examples are encouraged.
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