What’s wrong with the economics of sci-fi?

Does Emperor Shaddam IV look like he cares about economic growth?
He who controls the spice, controls the universe!

Economist David Berri has an article in Time criticizing the depiction of economics in science fiction. In particular, he argues that sic-fi stories frequently depict technologically advanced galactic empires despite the fact that, in the real world, autocracy sniffles economic growth. Historically, empires have seized private wealth, making citizens more reluctant to invest in technology and innovation. By contrast, inclusive governments, such as democracies, allow people to reap the rewards of their investments, thereby encouraging investment in technologies that stimulate economic growth.

I know something about both political economy and science fiction, and unfortunately Berri gets both wrong.

Continue reading “What’s wrong with the economics of sci-fi?”

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