Friday, November 2, 2018
Understanding Development Economics and the Poverty in Africa vs. the Wealth of Switzerland
I am putting this comment here rather than at EPJ because it relates to a point that is often brought up here at Target Liberty.
The immigrant-hating commenter, The Lab Manager, argues as evidence of the mental backwardness of black people the economic success of countries such as Hong Kong, Switzerland and Japan compared to most African countries.
But Lab may be demonstrating with his argument a lack of deep thinking here that he generally attributes to blacks.
There is a sound argument in development economics that countries with little in natural resources rarely have governments or dictators that suffocate general economic activity. There would be little for political leaders to siphon off in lucre in such countries if free markets were not allowed to thrive and for entrepreneurship to abound.
However, the situation is entirely different in natural resource rich areas such as most of the continent of Africa. Political leaders, especially in African countries, literally see wealth in the ground, be it in the form of gold, oil or diamonds. They don't have to incentivize the population to be creative. In fact, they don't want others to get free market wealthy who could become a threat to their regime. All they need to do is figure out a method to capture the resources from the land and the revenue streams, and the hell with the people and free markets.
Thus, the African people versus Swiss people argument is much more complex and requires much more thought to understand than The Lab Manager appears to have put into it.
Note: I have only put up above a chart of the major mined resources of African countries and not of Switzerland, Hong Kong and Japan, perhaps with a little thought The Lab Manager can figure out why.
at 11:51 AM