Policymakers have long accepted the central role of innovation in spurring aggregate productivity and growth. They have looked at the arrival of new systems of organization and new technologies, from the steam engine to electricity and the internet, as catalysts to material progress in the modern age. But in doing so, they may have underestimated the importance of another … [Read more...] about When an Excess of Small Firms Hurts Productivity
Weak Institutions, Fiery Protests
Residents of Hamburg, Germany may have been shocked by the violent protests that erupted July 6 and July 7 during the meeting of the G-20, as protesters armed with rocks and incendiary devices blockaded streets, set cars ablaze and battled with police officers. But for the inhabitants of many Latin American cities, such scenes are commonplace. They are common because ordinary … [Read more...] about Weak Institutions, Fiery Protests
Is Latin America Failing Its Workers?
The deaths of 17 workers building facilities for the 2018 World Cup in Russia, along with a lack of employment contracts and harsh working conditions at the sites, have made headlines recently. They have provoked denunciations by rights activists and drawn attention to labor abuses. But Russia is not alone in failing to protect its workers. Latin America also suffers real … [Read more...] about Is Latin America Failing Its Workers?
Can Mandatory Voting Improve Democracy?
A healthy democracy requires widespread voting and an informed electorate. But by those standards many, if not most, democracies are ailing. In the United States, less than 60% of the voting age population turned out to vote in the 2016 presidential elections. Even so, many voters have little idea of the basics of the U.S. system and fewer than a quarter know who their senators … [Read more...] about Can Mandatory Voting Improve Democracy?
Rewards Help Tax Payments Become "Contagious"
When the clock strikes midnight on December 31, it's very common to start going over one's New Year's resolutions, like doing more exercise, eating healthier food or giving up bad habits. And it's equally common to forget those resolutions only a couple weeks later. For that reason, sometimes an incentive needs to be added to the good will. Prizes that reward positive changes … [Read more...] about Rewards Help Tax Payments Become "Contagious"