A critical review of 'Why Nations Fail' that examines the authors' academic work and methodology, while questioning the book's quality and practical implications. Longer summary

This review critiques 'Why Nations Fail' by Acemoglu and Robinson (AR), arguing that while the book itself is not very good, AR's academic papers present a more compelling case for their thesis that political institutions are the main determinant of economic growth. The reviewer explains AR's methodology using instrumental variables, discusses their evidence and criticisms, and ultimately concludes that even if AR are correct, their extremely long-run focus may not be very useful for practical policymaking or development efforts. Shorter summary

Scott Alexander examines the phenomenon of cost disease, where costs for basic services like education and healthcare have increased dramatically without corresponding improvements in quality or wages. Longer summary

Scott Alexander explores the concept of cost disease, where costs for essential services like education, healthcare, and housing have increased significantly over the past few decades without corresponding improvements in quality or wages. He presents data showing how these costs have risen much faster than inflation, while worker salaries in these fields have remained stagnant or even declined. Alexander considers various potential explanations for this phenomenon, including market failures, increased regulation, lawsuit fears, and changing risk tolerance. He argues that this cost disease is a major factor behind many current political and economic debates, and expresses concern about its impact on living standards and economic progress. Shorter summary