". . . the only long-term solution to world poverty is business. That is because businesses produce goods, and businesses produce jobs. And businesses continue producing goods year after year, and continue providing jobs and paying wages year after year. Therefore if we are ever going to see long-term solutions to world poverty, I believe it will come through starting and maintaining productive, profitable businesses" (pp. 80-81).
Jim Klauder, writing in the San Francisco Chronicle, makes a similiar argument in his article, "Ignorance shrouds capitalism's profound impact on reducing poverty." I encourage you to read the whole thing. He argues that "It is undeniable that 2004 was a great year for the poor." He cites a recent study by the World Bank to the effect that 2004's growth reflected "an expansion without precedent over the past 30 years," and that "the rapid growth of developing economies . . . has produced a spectacular, if not historic, fall in poverty." And this may be the part that's the most surprising--at least to those of us without adequate knowledge of economic principles--one of the greatest hindrances for the world's poorest poor (those who live on less than $1 per day) is that they are unable to go into debt--a benefit that we American take for granted. They not only have nothing, but they have no way of acquiring anything due to governmental and institutional restrictions.
(HT: Instapundit)
