Survival Arts

Quote of the Day

The government doesn't produce any wealth. Factories, software companies, farmers, and others are the ones producing wealth. All the government can do is make it harder for people to produce wealth or take wealth from one person and hand it to another. It can't actually make the pie larger on its own, but it can manage to drastically reduce the size of the pie by interfering. Only the people actually doing productive work can increase the size of the pie.

We see extreme cases of this in the third world. The reason people in Africa live in shacks and have to wear our cast-off clothing is not because we're mean and keep them from having all the wealth we've stolen from them. They have little wealth to steal in the first place. They are poor because their governments are run in a way that makes the creation and retention of wealth impossible. Unlike the booming Asian economies, where foreign factories are welcomed, few foreign companies "exploit" the poor of Africa, because the African governments have made running factories and businesses nearly impossible. Even indigenous entrepreneurs are regulated, shaken down and taxed into oblivion. If you want to make the poor wealthier, you have to stay out of the way of people who want to produce wealth. The more you get in the way, the poorer people will be.

Perry Metzger