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Why Engineers Build Growth and Lawyers Slow It Down

What makes one country’s economy thrive while others stalls? This question has puzzled economists for decades. Back in the 1980s, an economist named Andre Schlier decided to dig into it, and his findings were as fascinating as they were simple: the balance between engineers and lawyers plays a surprising role in economic growth.

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Schlier’s paper looked at countries around the world, comparing their economic growth with the ratio of engineers to lawyers. The idea was to figure out how these professions shape the way a country develops. What he found was that more engineers often meant faster growth, while more lawyers could hold a country back.

Engineers create things. They design infrastructure, build technology, and solve problems that help economies grow. Whether it’s roads, bridges, or innovative gadgets, engineers focus on building and improving the world around them. More engineers mean more innovation, better efficiency, and, ultimately, a stronger economy.

Lawyers, on the other hand, often deal with rules, regulations, and disputes. While they’re essential for maintaining order, having too many lawyers can slow down progress. Instead of focusing on growth, resources are spent navigating legal complexities, settling disputes, or managing red tape. Schlier’s conclusion? Too much lawyering might stifle innovation and efficiency.

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This doesn’t mean lawyers are bad or unnecessary. Every country needs them to ensure fairness and justice. But when the legal system becomes too big, it can overshadow innovation. The key is balance: enough lawyers to keep things fair but not so many that they bog down progress.

Countries with a high number of engineers, like South Korea and Germany, have seen incredible growth through innovation and technology. Meanwhile, economies with large legal industries often face slower growth due to increased costs and inefficiencies.

Schlier’s research reminds us that economic growth isn’t just about policies or resources. It’s also about people—the roles they play and how they shape their economies. Encouraging more engineers doesn’t just mean building bridges; it means building the future.

Governments can foster growth by investing in STEM education, encouraging innovation, and simplifying legal processes. By striking the right balance between building and regulating, they can set the stage for long-term success.

Schlier’s findings might be decades old, but they still hold valuable lessons today. If we want to build stronger economies, it’s time to focus on building—literally.

Stay tuned,

BREEFX ✨

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