The Great Mental Models, Volume 2: Physics, Chemistry and Biology

by Shane Parrish

And finance policy recognized the need in industry to defer profits until an adequate industrial learning process had taken place. In other words, financial policy frequently accepted low near-term returns on industrial investments in order to guild industries capable of producing high returns in the future.”15 Conversely, the Asian countries that were developing at the same time but did not follow these agricultural interventions had long periods of impressive growth, but they were unable to sustain it. With no real land reform in Indonesia, the Philippines, and Thailand, agriculture output was dampened because landlords made more money renting plots than making investments to increase yields, and families had no incentive to maximize the outputs on the land they didn’t own.