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The brain drain and the finance curse

One of the symptoms (and causes) of the finance curse is the ‘brain drain’ out of other sectors – industry, tourism, agriculture, government, etc. – into overpaid financial jobs. As one academic paper summarises:

“Finance literally bids rocket scientists away from the satellite industry. The result is that erstwhile scientists, people who in another age dreamt of curing cancer or flying to Mars, today dream of becoming hedge fund managers.”

The attached graph from the same paper shows one finance-cursed result: this brain drain is bad for the economy. Now the Financial Times has just written an article entitled ‘The best reader comments and contributions of 2018,” which contains a contribution almost exactly confirming this analysis, but on a personal level: Continue reading

How the finance curse affects tiny countries

The finance curse (obviously) affects different kinds of countries in different ways.  Take the Cayman Islands, for instance. It has has on some measures the world sixth largest banking centre, and wealth that accrues locally could theoretically be divided among just 65,000 people to make everyone rich. That’s very different from a large economy like Britain’s, where the wealth from a somewhat larger City of London could theoretically be divided among a population a thousand or so times larger than that of Cayman.  Continue reading