Imagine you can choose between living in two kinds of societies:
1. Dynamic world prone to wild swings and big crashes, but ultimately more growth in the long run
2. Safe and stable world with greater consistency, less volatility, and much lower risk of catastrophy
You might think that Americans and Europeans effectively decided to move from option 1 to option 2 between the late 19th and mid-20th centuries. Depending on your politics, you might attribute this to the stultification of modernity, or the triumph of the enlightened welfare state. Regardless, you would be wrong.
Read Full Article »