A Nobel Prize winning view on wealth inequality
The Rest Is Money
Jul 5, 2026
Nobel laureate Simon Johnson argues that modern economic prosperity is primarily a legacy of colonial-era institutions. Regions where Europeans settled and established inclusive rules of law thrived, while areas subjected to extractive, exploitative systems remain trapped in cycles of inequality. This historical path dependency continues to shape global power dynamics and wealth distribution today.
Key insight: In 1700, an adult European arriving in North America faced a 1.5% annual mortality rate, while those arriving in West Africa faced a 50% death rate in the first year, a disparity that drove Europeans to build extractive, non-inclusive institutions in Africa rather than settling.
