In this Planet Money episode, the spotlight is on the groundbreaking work of Nobel laureates Daron Acemoglu, Simon Johnson, and James Robinson, who have changed the way we think about economics by showing how institutions shape a nation’s economic fate. Their research, which faced initial doubt, draws on historical evidence from European colonization to illustrate that the kind of institutions established—whether extractive or inclusive—has a lasting impact on economic prosperity. While their findings aren't absolute, they underscore the importance of inclusive institutions and inspire hope for societal and economic betterment through institutional reform.
