Dependency can occur naturally as a result of statism that discourages local capital formation.

Question

Quizplus · Accepted Answer

Statism, which emphasizes the centralization of economic controls and planning in the hands of the state, can lead to dependency by discouraging local capital formation. This is because heavy state intervention can stifle entrepreneurial initiatives and the development of local industries, making the economy more dependent on the state or external support.

Dependency Can Occur Naturally as a Result of Statism That