Ponziconomy

10 Feb 2011

Umair Haque for Harward Business Review on Egypt’s Revolution provides excellent economic perspective:

What we’re watching is a massive malfunctioning of the global economy. At the root of the problem: dumb growth. Dumb growth is, in many ways, bogus — rather than reflecting enduring wealth creation, it largely reflects the transfer of wealth: from the poor to the rich, the young to the old, tomorrow to today, and human beings to corporate “people.” Dumb growth is growth without prosperity. And it’s far from an Egyptian problem.

And further:

The challenge now is leaping to a higher order of innovation: institutional innovation, because it’s institutions that set the incentives that mold and shape human achievement in the first place.

Brilliant!