It’s the Middle Class, Dumbass
The process of root cause analysis is asking “why” over and over again in order to pinpoint the underlying cause of an issue while eliminating presumptions for clarity. The author discusses their experiences working in scientific settings, where precise results were essential, and stresses the significance of figuring out the underlying causes to avoid problems in the future.
The conversation then turns to the intricacies of national economic failure, arguing that low output of high-value goods and services is the root cause of bad economic performance. Poor skills, a lack of institutional support, and a failure to encourage hard effort and innovation are all associated with this weakness. The author contends that because of a widespread culture of corruption, institutions are ineffectual because they do not prioritize the common good over personal benefit.
When immediate gains outweigh uncertain consequences, corruption is justified through a cost-benefit analysis, leading to a habitual acceptance of dishonesty in a variety of society sectors. A layer of bureaucrats and middlemen that uphold an extractive system and manipulate political systems to further their own agendas rather than the advancement of the country are said to be part of the deeply ingrained corruption ecosystem.
Reform attempts frequently fail because they rely on the very middlemen that need to be dismantled and lack knowledge of the current system. Similar to this, political leaders are enmeshed in internal rivalry and self-interest, which hinders efficient governance. Examples from history show that extractive regimes usually take large shocks or strategic decisions to dismantle, with growth occurring after important shift times.
The author offers cautious optimism while examining the present political manifestos of major parties. Priorities are given to jobs and economic progress, while individual viewpoints on party leaders are noted. However, governance may be compromised by internal party politics. The author argues for an economic concentration on local production and high-value enterprises, suggests separating party issues from governance duties, and stresses addressing economic challenges before institutional reforms.
According to the author, a robust middle class will boost responsibility, which will enhance government efficacy and institutions. This is a practical strategy that shifts personal incentives in favor of group advancement.
