Thursday, June 16, 2011

Enterprise Not Aid

I am presently at Acton University 2011 where I will be lecturing over the next two days about the nature and function of money and the morality of capital and interest.  Last night during the evening session, The Action Institute announced it was launching a new initiative called PovertyCure. PovertyCure wants everyone to stop asking why are so many still so poor and begin asking the right question: what causes wealth?

As I point out in the introduction to my Economic Expansion and Development course at Grove City College, poverty is the historical norm. Instead of asking why are so many still poor, we should instead ask how did we become rich?  The short answer is we were allowed to take advantage of a more extensive division of labor using accumulated capital wisely invested by entrepreneurs. Aid breeds dependence. Enterprise breeds prosperity. That is the solution to poverty and that is the vision of PovertyCure. I encourage you to watch their video promo:


  1. What is their solution to the current political institutions in place? Growth can only go so far with central planning, self-serving dictators in power.

  2. That is their biggest challenge. There is no easy solution. A good first step that they call for, however, is a move away from foreign aid which serves to prop up klepto-totalitarian regimes.