09 January 2011

The world doesn't look so empty

Neo-classical economics grew up in an 'empty' world because the model was frontier America. The attention focused on a planet populated largely by the developed, market-economic nations while the populations of the undeveloped, non-market nations didn't really come into the calculus. 
Once the undeveloped world comes into focus, the world suddenly doesn't look so empty, and resource constraints almost instantly become binding. 

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