Nobel Prize Winning Economist: Core Problem Is Too Much Centralization … In Both Government AND the Private Sector

Wednesday, August 8, 2012
By Paul Martin

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.

The Rest…HERE

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