What are the most successful economies one can think of?
Post WWII Japan, Germany
Industrial Revolution England, Netherlands
What are the interesting features these all share?
1. NEW systems. Effectively, the existing power structures were broken...and no one could prevent new players from doing things better.
2. Anglo-derived capitalist systems.
Incidentally, the worst systems we've ever seen are all also new systems, heavy on central control.
1. Midieval China, Khmer Rouge Cambodia, North Korea, Mao's China, Stalin's Russia.
Anglo-common law derived systems (evolved law, imported) that are new are good systems. Stronger central control makes bad systems.
Olson explains: Systems are like boats...they get barnacles...except in economies, the barnacles get on the rudder and start driving. Only new systems are relatively good....because the barnacles haven't had time to accumulate.
TJ and the tree of liberty is also appropriate here.