ECON 2720 Lecture Notes - Lecture 3: Economic Stagnation
25 Jan 2014
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Document Summary
Subsidizing a particular approach to a problem deincenitizes people from coming up with new technologies that solve the problem better. Incentives should exist for people to come up with better and new technologies. An example is co2 emissions because current methods of low carbon power emissions are subsidized but finding new methods are not. Rome was made up of mostly small businesses and had a strong financial system. Its most important contribution to business history was a relative time of peace, which gave many businesses a feeling of security and certainty. Traders could ship their product and not be worried about something happening along the journey. During peaceful periods ships are designed for trade and not designed for naval warfare. During times of war, ships were designed for battle and carried troops, but had less of a capacity to carry tradable goods.
