The Economy of the West: From Boom to Boom The West accounts for 25 percent of U.S. gross domestic product, almost exactly the share of the U.S. population in the West. This isn’t entirely a coincidence, because population relates to labor supply, which is one determinant of economic output.
So long as we have systemic organizations operating under the government’s protection, we will face the matter of whether we have the will to allow the market and bankruptcy to resolve them. In a major crisis, there will always be an overwhelming impulse to avoid putting such institutions through receivership.