Editorial Board

The Economics Nobel Holds a Lesson for the US

Democratic institutions matter, for rich and poor nations alike.

Not the path to prosperity.

Photographer: Win McNamee/Getty Images

Three economists — Daron Acemoglu, Simon Johnson and James A. Robinson — have earned the 2024 Nobel Memorial Prize in Economic Sciences with a crucial insight: Institutions such as property rights, free and fair elections, and an impartial judiciary matter immensely. Countries that have them prosper; those without don’t.

Their research has long been considered relevant mainly for developing nations. These days, the world’s richest should be paying attention, too.