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Green and Pink Skycrapers to turn out in the Red?


CNN reports today that in China they plan to build the world's tallest skyscraper. It has been designed to be very environmentally friendly i.e. green, and will be in the color pink.

In my paper "Skyscrapers and Business Cycles" I show that historically speaking there is a correlation between the building of the world's tallest skycraper and world economic crisis. I also provide reasons related to the Austrian Business Cycle theory why the correlation might hold true. Because these record setting skyscrapers often open for business in the midst of a world economic crisis they typically fail as an investment and often operate "in the red" for many years to come. My guess is that the two Phoenix Towers planned for Wuhan, the capital of Hubei province in China will meet the same fate.

Mark Thornton is a Senior Fellow at the Mises Institute and the book review editor of the Quarterly Journal of Austrian Economics. He has authored seven books and is a frequent guest on national radio shows.

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