The former Dutch Empire teaches us a lot about the importance of capitalism in driving long-term success through the development of productive entrepreneurs. The Dutch became a leading empire by being open to the best thinking in the world. They became so inventive that they were responsible for 25% of all the major inventions in the world — including ships that could travel and collect great riches, and the invention of capitalism as we know it today to finance those voyages. This virtuous cycle leads to strong income growth, which can be used to finance investments in education, infrastructure, research, and development. Over time, that helps its citizens become more productive and more competitive than their peers. #principles #raydalio #history #capitalism