Nobel Prize Winning Economist: Core Problem Is Too Much Centralization … In Both Government AND the Private Sector
by George Washington
Nobel prize winning economist Ed Prescott has previously said that we have to break up the big banks.
Prescott notes in a new interview that centralization – of either government or banking – is a core problem:
[Question] Brussels is using this crisis to grab more powers from governments. How does that make things even worse?
[Prescott] Dangerous centralization.
China … From 1,000 to 1,300[A.D.] was the richest country, the most advanced. They had done much better than Europe, and they were by far the leader.
But then – under the Ming Dynasty – they got centralized, and they started preserving the status quo. The provinces lost their power.
[The Ming Dynasty got rid of the "press".]
And technological regression set in there. People from the other end of the Euro-Asia land mass came and humbled that great empire.
[Question] Why is the U.S. economy doomed to fail and what will happen?
[Prescott] They haven’t gotten rid of the too big to fail problem.