A crude chart of development: investment in productive sector---> - TopicsExpress

A crude chart of development: investment in productive sector---> capital asset formation ----> rents off capital asset via exports ----> Cheap labour subsidises weak infrastructure -----> wages and marginal taxes expand -----> demand soars -----> state demand leads to infrastructure buildup (instead of: to union-driven public sector wage booms) -----> Private demand leads to services sector expansion ----> core taxation surge + low-to-mid wage employment boom ----> social investment in human capital ----> economic transformation ..... :-)

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