It has reduced prosperity.
It leads to misallocations -- and will ultimately reduce prosperity around the world.
If a group of countries imposes infant-industry protection, it will split up the market; each country may end up with small-scale, localized, inefficient production, thus reducing the prosperity of all of the countries.
He analyzes how the European trading companies starved southern polities of important trade and tax revenues, weakening them and reducing regional prosperity, which in turn undermined the proftability of the companies.
Austerity that leads to reduced investments in children will reduce posterity's prosperity.
Later, however, raids by desert tribal groups reduced their prosperity.
Other ruins show that in the Byzantine period Al-Khārijah's inhabitants became Christian, but raids by desert tribes reduced its prosperity.
In the north the ancient ports of Berbera and Seylac, much reduced in prosperity and importance, were now controlled by Somali nomads, and the position of the old ports of Marca, Baraawe, and Mogadishu was very similar.
Barring the experience of some Asian countries where rapid growth in national income has coexisted with high levels of perceived corruption (China, Vietnam), evidence suggests that corruption slows down or even reduces economic prosperity in a vast majority of economies around the world.
