Zentrum Liberale Moderne hat dies direkt geteilt
I am extremely grateful that my essay "The Cost of Non-Democracy" was awarded the first prize in this year's essay competition on the relationship between the economy and democracy jointly hosted by WirtschaftsWoche, Zentrum Liberale Moderne, and Gemeinnützige Hertie-Stiftung. In my essay I explored the question whether a populist or non-democratic government could sustainably boost economic growth and prosperity and how this has played out in history so far. I argued that given the rather poor track record of populists and autocratic leaders, especially after gains from exploitation have been extracted, it is unlikely this would be different in the present. Even though democracy is not without weaknesses, this does not mean non-democratic alternatives do not carry disadvantages that are potentially more grave (e.g., loss of personal liberties or discrimination of dissenters). Last, a society not based on state control provides for a better allocation of resources as people and firms are less constrained in their interactions and an institutional environment that is reliabe and inclusive also contributes to more innovation and growth. This story has of course been told many times, and the significance of inclusive and resilient institutions has recently been emphasised by the Nobel Prize in economics. Yet it needs to be reiterated such that we do not give in to the sweet promises by populists and autocrats. You can find the whole essay here: https://lnkd.in/epXTCvbk