A society’s values and beliefs matter for its economy

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A society’s values and beliefs matter for its economy
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Social codes, not just rational self-interest, influence individual choices and thus broader economic activity

is more than text on a red cap. It is an argument about the nature of American success: one which President Donald Trump elaborated on in racist comments last week. On July 21st he questioned whether four Democratic congresswomen, all non-white, were “capable of loving our Country”. The same day Stephen Miller, an adviser to Mr Trump, said the president’s criticisms of America differed from those of his critics because he was defending the “principles of Western civilisation”.

Cultural evolution is essential to the thesis of “A Culture of Growth”, which attempts to explain why sustained growth began where and when it did. Mr Mokyr says that factors often credited with kick-starting industrialisation—such as capital accumulation and the cost and supply of certain kinds of labour—may be necessary but are not sufficient. The true catalyst was a continent-wide evolution in beliefs.

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