Bill Gates: Nations grow rich if they embrace capitalism
Bill Gates is no right-winger. He supports gun control and his Foundation has been a huge proponent of “reproductive health and family planning.”
The incredible economic transition in China over the last three-plus decades occurred because the leadership embraced capitalistic economics, including private property, markets, and investing in infrastructure and education.
This points to the most obvious theory about growth, which is that it is strongly correlated with embracing capitalistic economics—independent of the political system. When a country focuses on getting infrastructure built and education improved, and it uses market pricing to determine how resources should be allocated, then it moves towards growth. This test has a lot more clarity than the one proposed by the authors, and seems to me fits the facts of what has happened over time far better.
Gates made similar comments last year.
He’s right, of course. Just look at what is happening in Greece.
As AEI’s Arthur Brooks noted in the Wall Street Journal yesterday:
[T]he record of free enterprise in improving the lives of the poor both here and abroad is spectacular. According to Columbia University economist Xavier Sala-i-Martin, the percentage of people in the world living on a dollar a day or less—a traditional poverty measure—has fallen by 80% since 1970. This is the greatest antipoverty achievement in world history. That achievement is not the result of philanthropy or foreign aid. It occurred because billions of souls have been able to pull themselves out of poverty thanks to global free trade, property rights, the rule of law and entrepreneurship.
The left talks a big game about helping the bottom half, but its policies are gradually ruining the economy, which will have catastrophic results once the safety net is no longer affordable. Labyrinthine regulations, punitive taxation and wage distortions destroy the ability to create private-sector jobs. Opportunities for Americans on the bottom to better their station in life are being erased.