tag:blogger.com,1999:blog-308340212121889567.post5108981995882205383..comments2024-03-11T09:53:09.705+03:00Comments on Empires of the mind.: Extractive EconomicsTerry Kiddhttp://www.blogger.com/profile/03888160718812027224noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-308340212121889567.post-34457562150572303952014-04-06T09:15:35.228+03:002014-04-06T09:15:35.228+03:00Thanks for your comments Craig. But, I don't t...Thanks for your comments Craig. But, I don't think there's an inherent connection between manufacturing versus service and extractive economy or not. <br /><br />I think extractive economies are those where a large amount of capital is essential to start/maintain the business. This keeps the economy under the control of governments and/or multinationals and it can then be extractive because its hard to set up competing suppliers because the entry cost is too high.<br /><br />In recent times a number of areas that were once the the essential province of multinationals and/or governments have met competition from small outsiders. Areas such as power generation and even money supply. That's why the forces of conservatism, which tend to favour extractive economies, support high cost nuclear power and hate things like Bitcoins. But this could be the subject of another blog. <br /><br /><br /><br />Terry Kiddhttps://www.blogger.com/profile/03888160718812027224noreply@blogger.comtag:blogger.com,1999:blog-308340212121889567.post-11522266248551085522014-03-27T11:43:40.491+02:002014-03-27T11:43:40.491+02:00Thought provoking blog. And you make some valid po...Thought provoking blog. And you make some valid points on the self-perpetuating property bubble. Whilst this might ultimately lead to a more extractive economy, I don't think a service industry is necessarily going to. I would imagine that a manufacturing-driven economy would be more extractive as there would be a higher ratio of unskilled and semi-skilled workers to higher-paid skilled workers.<br /><br />Also, I'm not sure about the lack of innovation in the UK. I think a lot is made of Britain's diminishing manufacturing industry, some of which is exaggerated. We still made a lot of stuff here. We no longer make a lot of cheaper bulk goods, which is more suited to developing economies, but we still make a lot of high-end goods, such as, luxury cars, hi-fi equipment, high-end vacuum cleaners, semiconductor equipment, graphics cards, musical instruments, film and tv production, and so on. There was a piece on a recent TopGear that lined up all the vehicles still "Made in Britain" on The Mall and there was a healthy array.<br /><br />I understand the argument given the recent financial crises, to warn against over-reliance on the banking industry, but I think we should be proud of the strong service industries we have built in this country, as well as the manufacturing niches and heritage. Britons are very good at adapting and innovating, and that is at the heart of any good economy, and ultimately, an inclusive society.Craighttps://www.blogger.com/profile/06148288423567758295noreply@blogger.com