“Capitalism Cuts Poverty”

The numbers prove it, say University of Chicago economists Gary Becker and Kevin Murphy.

The men obviously were distant collegues of Barack and Michelle Obama during their time at U of C.

“Numbers show capitalism prompted an enormous growth of worldwide wealth in recent decades. Even if the slowdown means GDP loses ground this year, as the OECD now predicts, we’re still way ahead of the game compare to only a few years ago.

In simple terms, the world is much less poor than it used to be, and there’s no erasing those gains.

World real gross domestic product grew by about 145 percent between 1980 and 2007, they note. Chinese and Indian incomes skyrocketed after those countries adopted market-based reforms.

Even if a recession slashes 10 percent off world GDP long-term capitalism-induced growth in prosperity would be substantial.”

Becker and Murphy warn against interfering with or marginalizing capitalist markets.

“The widespread view to do something, anything, to boost the economy, may violate the oath doctors take: First, do no harm. Government interventions hurt rather than help by increasing risk and uncertainty.

‘The government has overridden contracts and rewarded many of those whose poor decisions helped create the mess,’ the economists write.”

Full story from Moneynews.com here.

Published in: on March 22, 2009 at 1:56 pm  Leave a Comment  

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