Capitalism works best in a free economy. An economy in which producers can serve customers. It makes clear that when countries are in economic problems the reason for the problem is likely a regulated economy. Which limits economic activity.
One of the countries that I expect to have problems in the future when it comes to economic growth, is South Korea. Which is disruptive. After all, is South Korea one of the success stories of Asia and the decolonizing of the world.
When you have a quick look at the situation in South Korea we see quite an impressive success story. Especially if you keep in mind that South Korea is still engaged in a war.
One of the key reasons for the economic success story of South Korea was the rapid industrialization. With the service sector and consumer demand remaining relatively weak.
One of the problems of South Korea is the misallocation of investment. This comes partly from restrictions on market enterance and keeping competition out.
As it is with all governments interacting in the economy they are taking on the effect, not the root of the problem. When they would have addressed the root of the problems they would face some more impressive economic growth.
It is clear that the South Korea initiatives did do more harm than good. But it is obvious that this is the case with all government market tempering.
A good way for south Korea to move forward would be to get a peace deal with North Korea. After which the misallocation of the military assets would bring the needed stimulus. The cost savings could be used to lower the costs of living by lowering taxation costs. Then, off course, I refer to direct and indirect taxes.
It is unlikely of this would happen. But it will be clear that when this would happen south Korea would become one of the nicest countries in the world to live, do business and do. But it is unlikely that would happen. After all: since when are we having proper policies that serve the people?