Why are some countries economically successful and others not? Simon Johnson receives the Nobel Prize in Economics for his research on this subject – and issues clear warnings.
Nobel Prize winner in economics Simon Johnson warns governments of western industrialized countries about the consequences of wrong economic policies. “There is no guarantee of prosperity, no guarantee of stability. The world is a difficult and dangerous place and always will be,” said Johnson in an interview with the German Press Agency. “If they don’t manage to ensure that most people in their country are doing well economically, there will be consequences – and they will be bad.”
Johnson, who conducts research at the Massachusetts Institute of Technology (MIT) in the USA and lives in Washington DC, was honored a few days ago along with economists Daron Acemoglu and James A. Robinson for their research on the wealth gap between nations. An important role is played by how social institutions are designed and whether they benefit society or exploit it.
Trump victory would be “terrible for US institutions”
Governments should ensure that good jobs with higher wages are created, says Johnson. “You have to preserve them, push them forward and never give up.”
Johnson, originally from Great Britain, is concerned about a possible victory for former President Donald Trump in the presidential election in his adopted homeland. “I think that would be very bad for the world in many ways and terrible for institutions in the US and elsewhere,” the economist said. “If Donald Trump wins, there is a lot to be done to save the institutions from him.” However, this could also be the case if Trump loses but does not accept this.
Source: Stern
