Our moral and mental development, and the high productivity that accompanies it, have taken place under a system of decentralized capitalism. I would claim that the capitalist system accounts for more than 100 percent of the reduction in poverty that has taken place over the past hundred years.
How can capitalism account for more than 100 percent of the reduction in poverty? Is that mathematically possible?
If we take into account the factors that have retarded poverty reduction, then we can argue that, by overcoming those factors, capitalism accounts for even more than 100 percent of poverty reduction. That is, if world poverty has fallen from 90 percent to 20 percent over the past 200 years, then capitalism would have reduced it by even more were it not for the retarding factors.
Ironically, the biggest factor retarding the capitalist solution to poverty may well be the crusade to end poverty using conscious planning. Certainly if one includes among the planned solutions to poverty the experiment with Communism (and I see no reason why it ought to be excluded), then the case against intentional anti-poverty efforts is rather compelling. Simply compare poverty in North Korea with that in South Korea, for exa
Thursday, May 10, 2007
TCS DailyThe Real Solution to Poverty is getting the government out of the way and letting capitalism work its magic.