SOLOMON’S KNOT: HOW LAW CAN END THE POVERTY OF NATIONS – Robert D Cooter & Hans-Bernd Schafer

Book can be found here https://amzn.to/2OoRjzY summary and notes below:

In Solomon’s Knot, Cooter and Schäfer propose a legal theory of economic growth that details how effective property, contract, and business laws help to unite capital and ideas. They also demonstrate why ineffective private and business laws are the root cause of the poverty of nations in today’s world. Without the legal institutions that allow innovation and entrepreneurship to thrive, other attempts to spur economic growth are destined to fail.

NOTES BELOW
# Economies grow when business ventures develop innovations
#Moscow criminals provide security to a shop which pays them a tax or protection though its extortion it could be seen a better form of protection than the police service, more expensive but more affective
#A captain of a ship needs money to sail to get spices and come back to sell them, investors need to know he wont steal their money or find spices and run away with them. Captian tells them the route but fears they may steal it and set sail themselves. A stock company is created to solve these problems and shares are allocated.
#Ethics is the study of what people OUGHT to want
# millions of people in india, pakistan, and nepal practice bonded labor to repay the loans that have been made to them
# Marx’s theory of labor value fails as it predicts exploitation will rise and wages will stay same or fall, but as innovations introduced create more productivity the wages over time rise not fall.
# Oliver cromwell was dug up and beheaded 3 years after his death
# income growth in europe occurred after 1815 acccording to Robert Allen and that acceleration continued post 1850. Costruction workers in London, Amsterdam and paris lived at the poverty level at 1820  and by world war 1 their wages increased 2- 3times the poverty level http://www.nuffield.ox.ac.uk/users/allen/greatdiv.pdf
#In 2004 the Ukrainian govt agreed to sell the largest steel mill to a group that included the son of the president of Ukraine for $400mill, in 2005 a new president undid the deal and it sold for $4.8 billion

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