Why rich societies can’t stay rich without next democracy?

Richard Greenspan on Mancur Olson’s book

Rich and long established societies grow a feature, that inevitably slows their growth of wealth and creativity and kills them at the end.

This feature is the established special interest group.

Special interest groups need time to form, but once there, and well established, they are hard to get rid of them, and they burden the economy and the society in every step they make.

Special interest groups bring about:

  • legislation, that favor few, and destroy society in general
  • complexity in regulation, in the procedures of public administration, and in the extensive use of professional languages that deprives ordinary citizens to have an understanding of the decisions affecting all of their lives
  • lack of motivation in ordinary citizens to try to influence common causes
  • shrinking competition by raising high the entrance barrier in front of disruptors to enter both the economic and political markets
  • [this is also true for memes – in this case, innovative policies that could grow welfare, or insure sustainable economy, more security, less dependency on critical foreign resources, that could produce more happiness or eventually save the world on the long run]
  • ‘reduced the rate at which resources are reallocated from one activity or industry to another in response to new technologies or conditions’ – wanna see examples? one word: bail-outs.

Enough of the recounting of harm for today.

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