Lockdowns Depleted Capital In All Forms

Lockdowns Depleted Capital In All Forms
(Jason Connolly/Summit Daily News via AP)

When lockdowns first happened, my initial thought was geeky, and only later did I begin to realize the implications for human rights and liberties. 

My thought was: this is going to be devastating for future capital investment. The basis of my fear was the knowledge that in almost all poor countries, property rights are insecure, particularly for capital goods. These are goods that are produced to make other goods (the “produced means of production,” in the classic formulation by Eugen von Böhm-Bawerk). Their existence and protection is a key to prosperity. They enable more complex economic structures – the extended order, in F.A. Hayek’s phrase. It’s the basis of hiring and investment, and the foundation of wealth production.

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