A Nobel Prize winning view on wealth inequality
The Rest Is Money
Jul 5, 2026
Nobel laureate Simon Johnson explains how 400-year-old colonial institutions continue to shape modern prosperity. He argues that extractive governance, born from early colonial survival strategies, creates persistent inequality that even modern democracies struggle to overcome without intentional institutional reform.
Key insight: In the 1700s, European colonial strategy in West Africa was dictated by high mortality rates for settlers, leading to extractive institutions, whereas North America's healthier environment encouraged the development of more inclusive, rule-of-law-based institutions.
