An obvious statement understood by anyone with half a brain.  Those who
disagree with capitalism, my condolences for your handicap of having half a
brain or less.



----------

Randy

Who always laughs at the idea that the West became rich by stealing from
the poor countries.  Remember the quote from Willie Sutton regarding the
reason he robbed banks..



http://www.aei.org/publication/poor-nations-are-poor-because-of-the-lack-of-capitalism-not-because-of-it/?utm_source=twitter&utm_medium=social&utm_campaign=pethokoukispoornations
Poor nations are poor because of the lack of capitalism, not because of it

Why are the wealthiest nations so much richer than the poorest
nations?  Harvard’s
Ricardo Hausmann
<http://growthlab.cid.harvard.edu/news/what-should-we-do-about-inequality>
explains
what’s behind global inequality and poverty:

So there are these enormous differences in productivity that make the
productive places rich and the unproductive places poor. The poor people
are not being exploited. They’re being excluded from the higher
productivity activities. It’s not that the capitalists are taking a very
large share of what they produce. It’s just that they produce very little
in the first place. …

[image: Twenty20.]
<http://www.aei.org/wp-content/uploads/2015/12/twenty20_7de84ae1-915a-420b-944d-8cd37f9db403_poor_homes-e1450461883995.jpg>

Twenty20.

*Poor places are characterized by the absence of capitalist firms and by
self-employment, employment: these are small peasants and farmers or owners
of small shop. In these settings, there are no wages, there’s no employment
relationship. There are no pensions. There is no unemployment insurance.
The trappings of a capitalist labor market do not exist.*

While Marx thought that capitalism, as a form of organizing production,
would take over the world, poor countries and regions are characterized by
the absence of capitalism, of capitalist forms of production. So the
question we should ask ourselves is why did capitalism not succeed in these
regions, leaving huge differences in productivity between the places where
it succeeded and the places where it did not? The answer we have found is
that modern capitalist production requires the simultaneous access to many
different inputs.

“Inputs” can mean many different kinds of networks: water, electricity,
urban transport, roads, the educational system, banking, Internet. I would
also include economic freedom as a pretty important input, the ability to
take risks and innovate without government preemptively quashing you or
taking all your profits. Not exactly sure the degree to which the other
stuff matters with that political economic input.

As Deirdre McCloskey
<http://deirdremccloskey.org/docs/pdf/McCloskey_IdeasEnrichedTheWorld.pdf>
elegantly states it, “The modern world was made by a slow-motion revolution
in ethical convictions about virtues and vices, in particular by a much
higher level than in earlier times of toleration for trade-tested progress
— letting people make mutually advantageous deals, and even admiring them
for doing so, and especially admiring them when, Steve-Jobs-like, they
imagine betterments.”

But anyway, Hausmann adds, “you don’t connect people because they’re poor
and because they’re not connected, they’re unproductive and hence poor.”

So how to deal with that fixed costs issue and break that poverty cycle?
First, “some technological innovations might reduce those fixed costs, and
if the fixed cost is reduced, more people can be included.” Second, “have a
policy that shares the fixed cost.” I guess this would mean something like
government intervention to, say, make sure everyone has Internet access.
Sometimes, however, that intervention might mean getting government out of
the way. For instance
<http://www.technologyreview.com/news/542161/facebooks-internet-drone-team-is-collaborating-with-googles-stratospheric-balloons/>
:

Facebook and Google compete intensely for your time online and for the ad
dollars of corporations. But now the two companies are collaborating on
efforts to use balloons and drone aircraft to expand Internet access to the
four billion people that don’t have it. Documents filed with the U.S.
Federal Communications Commission show that both companies are pushing for
international law to be modified to make it easier to use aircraft around
20 kilometers above the earth, in the stratosphere, to provide Internet
access.

.




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