Something of a stain on the post-1970s monetarist counterrevolution is its continued dependence on perfect-market models — notorious for their reliance on various assumptions, including perfect knowledge and perfect competition. Similar schools of thought, such as the economics of rational expectations, are also based on this notion of “perfection,” whether it is some form of macro optimality or the supposition of flawless individual decision making.
Americans look out! Your empire may not be the only one in the world much longer. The European Union, often thought of by Europeans (and especially European power-hungry politicians) as a way of engineering a super power of their own to equal that of the United States, is consistently taking leaps toward creating a centralized continental super state. Years ago, the European Union invested millions in creating a pan-European history book to be used in schools across the continent. “To create a European sense of belonging,” they said.
Here is a good example of a malinvestment. Its the Sathorn Unique skyscraper from Thailand which was to be one of the biggest building in the country until the 1997 Asian Financial Crisis hit. Regulations in most countries require that the contractor finish the structure or at least make it look like it is finished. Not here in Thailand. I guess it also provides some support for the skyscraper thesis.
[An MP3 audio file of this article, narrated by the author, is available for download.]
Jefferson writes mournfully, “What a cruel reflection, that a rich country can not long be a free one!”
