Less developed countries with unstable policies can lead to lower productivity. Fluctuations in policies can amplify inefficiencies, especially in decisions like becoming an entrepreneur or worker. Changes in prices due to policy shifts affect productivity, with individuals having different skills impacting their choices. In a simple model, productivity depends on managerial and financial skills, with access to credit influencing decisions. Insiders can benefit from buying low and selling high, with individuals maximizing utility based on their occupation choice.