It has worked though. This policy created millions of jobs in China, Cambodja and Mexico.

The mistake that Republicans made is thinking that the nobles are loyal to the kingdom instead of their own personal greed.

Tilting the scale towards capital is a good idea when capital is the limiting factor on economic growth. A dollar invested rather than consumed brings two dollars in a few years time. Here's the thing: this is only really true in developing economies because, well, they develop. Inevitably, the amount of available capital outgrows the available investment opportunities. Expected rates of return and interest rates fall. At this point, subsidizing capital is every bit as foolish as subsidizing demand in any other ~fixed supply market. However, the enormous incentive to pretend otherwise remains.

Foolish: policies that favor capital are good

Smart: let's check interest rates to see if policies that favor capital are good