More broadly, India's current sharp growth recession has shown that reforms in land, labor and other natural resources are necessary to improve the economy's long-term potential.
In Asia, where land is cheap and labor costs are low, enormous shopping malls are popping up in Dubai, China, and the Philippines, with India expected to jump into the fold soon.
The old economic laws defined wealth in terms of land, labor and capital.
Not in Asia, where land is cheap and labor costs are low.
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Cheung said looking forward, if land and labor costs in central and western provinces continue to rise rapidly, factories would be unwilling to relocate there due to their inferior logistics network.
These are supply side reforms in fiscal (taxation, especially corporate taxation, and government spending) policies and pro-competition and pro-growth changes in restrictive regulations (especially with respect to labor, agriculture, and land use).
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Land, labor, and capital goods are squandered in producing things, such as houses, that are valued less than those goods that would have been produced without the monetary manipulation.
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In the Industrial Age, the inputs to wealth creation were land, labor and capital.
Reeling off the costs of farming, from paying for land, to fertilizer, seed and labor, Juliuson says that an extra nickel in the price of beans could help him retire someday.
The absence of tight oversight has allowed makers of herbal products to flourish, particularly in Utah, where the dry desert air helps keep raw materials and pills and capsules fresh, and where land and skilled labor have been relatively inexpensive.
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