Brad DeLong's Grasping Reality • 146 implied HN points • 23 Feb 25
- The U.S. had the potential to become a primary product exporter like Australia and Argentina due to its abundance of natural resources and land. However, historical choices led to a different path of industrialization instead.
- The U.S. chose to focus on manufacturing, education, and infrastructure, thanks to policies from figures like Alexander Hamilton. These choices helped build a strong economy that could sustain growth and innovation.
- Specializing in primary products can be risky as it makes economies vulnerable to price changes and global demand shifts. The U.S. avoided these traps by diversifying into industrialization, which created a more robust and resilient economy.