Spoiler: The historically meagre productivity growth of the Swedish Construction industry is a serious problem. Low productivity growth for an industry does not have to be a problem if the industry is small relative to the rest of the economy. But it is problematic when a large industry’s share in the economy is increasing over time at the same time as its productivity growth is stagnating. The Swedish Construction industry’s contribution to overall Swedish productivity growth is almost as small as the public sector’s contribution.
Unless the Construction industry’s productivity growth increases, the other industries’ productivity growth will have to increase. The increases will have to be continuously higher as long as the Construction sector’s share of the economy keep increasing. The reasons behind the weak productivity growth are well-known. Weak competition, many and complex regulations, municipal monopoly of the planning process for buildings, and other factors leading to high entry costs making it difficult for new firms enter the markets.
Chinais fighting a war against the Truth. When the Chinese communist regime is criticised for committing genocide of Uighurs, it tells its critics and the researchers that exposed it, to shut up. When we criticise the Chinese communist regimes for clamping down on Hong Kong’s democracy activists, it tells us to shut up. When we criticise the Chinese communist regime for violating Taiwan’s airspace and waters, it tells to shut up. And so on.
The Chinese regime’s attacks against people who tell the truth is appalling and often absurd. But it is nothing new. The Chinese communist regime has waged a propaganda and disinformation war against us and its own citizens for many years. The Chinese communist regime lies more frequent than we change shirts.
Spoiler: President Biden is right. Putin is a killer. He is a killer in more ways than we think of. Putin has, by the use of proxies, killed more than 14 000 Ukrainians, tens of thousands of Syrians, Russian journalists and critics. He has also killed thousands of Russians by lying and neglecting the needs of Russians.
Putin and the Kremlin lie to Russians to hide the poor state the country is in. They lie about countries in the “West” aiming to portray them as equally bad. The lies and the “vertical power” design of the Russian state apparatus is costing Russian lives. The health care system is in decay and Russians are afraid to get vaccinated because they do not trust their government which has spewed out lies daily since Putin became president.
Spoiler: The Chinese growth is slowing down. Communist China will never be able to make it to the richest economies even if it becomes the largest economy due to its size. Even if the Chinese has moved up the value-added ladder, it will become never become as innovative as USA.
Knowledge and innovation are not only cumulative, but they are also collaborative processes. The formation of these depends on interactions between scientists, researchers and other people involved in the innovation process. Free access to flows of information and knowledge is reinforcing the processes. Such conditions are more often found in democracies than in autocracies which explains why the former type of countries are more attractive to live and work in. Furthermore, scientists and researchers that move from autocracies to democracies become more productive.
Further obstacles are the prioritization of the SOEs and the demographic change. Pouring investments and ordering banks to throw good money after bad is hampering growth. The Chinese working age population is getting older and smaller. But the communist regime is committing is committing genocide instead of trying to reverse that development.