AJ Ericksen's Blog World

Monday, April 12

Economics 101 (& Politics)

Charles Krauthammer writes:
Turns out [Hubert] Humphrey was wrong. At the time [1965], we really did not "have the means to do it" because we did not yet know how to banish poverty and hunger. Today we do.

The answer is not foreign aid, which is corrupting and often worse than useless. In many cases, it further impoverished an already-poor country. Enriched urban elites bought luxury goods, while donated food and socialist controls drove down the local price of food, ruining the farmers on whom these subsistence economies had depended.

We now know that the secret to curing hunger and poverty is capitalism and free trade. We have seen that demonstrated irrefutably in East Asia, which has experienced the greatest alleviation of poverty in history. In half a century, places such as Hong Kong, Taiwan and South Korea have gone from subsistence living to First World status. And now free markets and free trade are lifting tens of millions of people out of poverty in India and China.
Mr. Krauthammer then continues by explaining how the Democrats' current opposition to outsourcing is inconsistent with the liberal aim of alleviating poverty.

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