Friday, January 15, 2010

Solving Poverty--Wanna Know How?

In light of horrible events, recent and ongoing: Chicago crime, the tragedy of Haiti, and the rank incompetence, dishonesty and corruption of this administration on the economy, I am posting this, from 2007, which still holds true today (New emphasis mine).

Solving Poverty

Another thought-provoking, simply elegant essay by Arnold Kling, TCS Daily, via RCP:
The point of this essay is to simply state the obvious. If you look at poverty from the broad perspective of international and historical comparisons, the solution to poverty is decentralized entrepreneurial activity under capitalism.

The capitalist solution to poverty is unsatisfying to many people, because it is not planned or intended. Policymakers and anti-poverty programs per se are not involved.

The phenomenon of unplanned results exceeding planned outcomes is quite widespread. As Nassim Taleb points out in his new book The Black Swan, and in this fascinating interview, human planning tends to work poorly when compared to trial and error. He argues, for example, that many medical discoveries are serendipitous, while systematic efforts such as those of the National Cancer Institute often yield disappointing results.

Link to the book here. Kling suggests focusing on outcomes, which has proved successful in practice.

Related posts: The World Explained ,Room to Read, The Lemonade Stand Approach to Politics
The answer is FREEDOM.


PersonalFailure said...

"decentralized entrepreneurial activity under capitalism" is an excellent description of what is already going on in Haiti. And in Somalia.

For that matter, we can see the effects of unregulated capitalism right here in the US. It's called a giant recession.

Anne said...

from personal failure

Anne said...

Make a joyful noise.