April 18, 2005

Economic Freedom and Prosperity

Adam Smith Dear friend, (This is a reply to a comment a friend of mine made on an earlier post)

It is not freedom that condemns people to poverty but lack thereof. Economic freedom is not only an indispensable part of a truly open and free society. It creates growth, prosperity and progress - not even the Chinese deny that nowadays. When people lack the freedom to private property and voluntary exchange, due to totalitarian or quasi-totalitarian regimes, poverty thrives and political freedom is doomed. On the other side, when economic freedom increases, so do growth, prosperity and political freedom.
See the ‘Economic Freedom and Per Capita Income’ from the (2005 Index of Economic Freedom), or compare the ‘Distribution Of Economic Freedom’ map (from the 2005 Index of Economic Freedom) to the ‘Infant Mortality Rate’ and the ‘Life Expectancy At Birth’ maps (of the World Bank). Read also: ‘Argentina’s Economic Crisis: An “Absence of Capitalism”’, by Ana I. Eiras and Brett D. Schaefer.

To be fair, I have to admit that the causes of the lack of economic freedom are not always local. Many rich countries (through their governments), blackmailed by powerful syndicates and corporate lobbying machines, impose import/export tariffs and production subsidies on many products in a way that distorts the markets. It is not coincidental that almost all developing countries are strong advocates of the direct abolishment of tariffs and in favour of free trade (see What’s Needed from Make Trade Fair). At the same time, many of the protesters against globalization and free trade not only support tariffs but are in many cases directly funded by reactionary religious groups, powerful European and American farmers unions and major corporations.

buzz it!


7 Comments so far ...

You expect me to accept the WorldBank and a bunch of RightWingThinkTanks as a source!! No, I won’t.

If a mathematics graduate doesn’t know that statistics are useless without theory then who should? If you misuse statistics, “then fall,” Statistics!

What do I care about the average life span in the US when millions of people who live there (NB: the richest country in the world) go without health care. Why do you think the people who appear on the Springer Show are almost always missing teeth? The national division is false in a globilised market, is reactionary to look at single nations nowadays. (NB: I am pro-globalization, but without capitalism)

When you talk about Argentina you remind me of the Doctors who used to bleed sick people and when they become worse they advise more bleeding. Argentina used to be the fifth largest industrial country; now poor children, there, look like starving Ethiopians!!

The freedom you are talking about is the freedom to exploit the workers to the bones and then through them away! What about freedom to live, to be healthy, to enjoy life, the freedom to study and learn. These freedoms mean nothing to you?

The question is: Freedom for the few to exploit the many OR freedom to the many to live a satisfied life?

But first answer me this: do you really care about the poor? I thought in your world it’s everyone to himself, isn’t it?

Comment on April 19, 2005 03:54 pm

“Graduates are leaving university [in the UK] with an average debt of £13,501″
http://news.bbc.co.uk/2/hi/uk_news/education/4442999.stm

“As of 2002, the average U.S. medical student carried $104,000 in student debt upon graduation, more than double the average debt only 10 years ago. In 1992, the average debt was around $50,000. In 1982, it was only $20,000. ”
http://www.amsa.org/meded/studentdebtltr.cfm

DEBT = SERVITUDE

What about the freedom to study and learn? Why should people sell themselves to slavery to be able to study at the university?

If the banks want to enslave the people, using their money to do it no less, than surely the people have the right to nationalize the banks and declare all personal debt void!

I am sure you don’t want to restrict the people’s freedom to exercise their own choice to natinoalize the banks, right? Maybe you only approve of choices that suits you and rejects those that don’t!

Comment on April 19, 2005 05:29 pm

As you of course expect, I will not justify your second question with an answer and I will deny the dilemma of your first question.

Your angry tone and lack of rational arguments give me the satisfaction that you actually had nothing meaningful to say against my points. I did not expect to convince you of anything, but the mere fact that you focus on the number of teeth the Springer Show guests have and personal attacks on me, just proves that truth is on my side.

As for your absurd understanding of what ‘freedom’ can be, I only have the following remarks: YES, I DO WANT TO RESTRICT their ‘freedom’ to nationalize anything, as I do want to restrict their freedom to commit genocide and send political (or religious) opponents to exile (or just exterminate them), or their ‘freedom’ to restrict my freedom. I do indeed want to deny them the right to oppress any minority; the individual being the smallest one.

Concluding, as with sex, banking agreements between consenting adults should not be your business, or the government’s for that matter.

Comment on April 19, 2005 07:47 pm

“I am laughing so hard my spleen is coming out of my nose.”

–More on this later…

PS: I love the way my style proves your content, keeping them coming…

Comment on April 22, 2005 04:45 pm

[After finding his spleen…]

Really, it’s not fair to deny us such gems as “The SMALL RED KLWSA”, we use Babel Fish Translation to read your story [that’s how it sounds after automatic translation.]

Congratulations, you perfectly understand why ‘Primitive Communism’ [i.e. Communism in Articles of Consumption*] won’t work (or rather fails after a while). From the Anabaptists to the hippies, they all tried it and failed.

The only communism that works is the common ownership of the means of production, then those who work harder would get more, easy-peasy. The difference with capitalism is that everyone would get the opportunity to work, study and improve himself.

*http://www.marxists.org/archive/kautsky/1897/europe/ch01.htm#s4

Comment on April 23, 2005 09:23 pm

[remembering what he wrote several days ago…]

Here’s an example why I won’t accept your definitions and figures and all them nice graphs:

The map shows Saudi Arabia as free economically, that might be true if you’re an American corporation with 10,000 marines to safeguard your interests, but it’s not true for normal people.

In Saudi Arabia if you have a successful business a member of the ruling family will come and offer to be your partner and you can’t refuse, you know who else practice this? The Mob!

From 50 billion dollars, income from the oil, the ruling family cut for themselves 5 billion dollars, and one of the princes said that the people shouldn’t complain since they got 45 billion invested, as if the whole money didn’t belong to the people in the first place.

In the same map Venezuela is indicated as economically repressive, did you know that all television channels except one is privately owned, 60% of the oil is pumped by privet companies (unlike Saudi Arabia), their airlines was bought in the ’90’s and strip sold by the Spanish airlines, did you know that 80% of Venezuelans lived in poverty while their country was the largest exporter of oil in the western hemisphere.

And what did they do to deserve being called economically repressive: they made a law that expropriated un-used land and factories and gave them to the peasants and workers; they used the revenues from the oil to help the poor instead of enriching the rich, etc. etc.

You want to quote something, quote the facts not some fancy-pansy ready-made statistical nonsense by some reactionary right-wing think tank paid for, in full, by corporations.

—————-
You may identify economy with business, but I don’t have to!

Comment on April 23, 2005 09:26 pm

“Concluding, as with sex, banking agreements between consenting adults should not be your business, or the government’s for that matter. ”

Oh, that’s why they send the Bailiff [agent of government] after you when you can’t pay them anymore, because they have a privet relation with you! Now I understand.

Of course what I said, if you read it, is: what if the people want to nationlize the banks to cancel their debts. No one mentioned the government, no one talked about interfering between the two lovers.

Let’s have a poll, set a poll on the index page, One simple question:
If there is a referendum to nationalize the banks and cancel all personal debt, would you vote:
* Yes.
* No.

All rational people should vote for yes, including you. go ahead set the poll and see what happens. By the way corporate debt gets canceld all the time, in Japan they canceled trillions of dollars of bad corporate debt, let’s discuss Reagan’s record on corporate welfare (not what he said but what he really did).

Comment on April 23, 2005 09:40 pm
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