A present from Dan Mitchell, our man in Washington DC. This mini-documentary from the Center for Freedom and Prosperity Foundation outlines the public policy framework that is necessary for a poor nation to become a rich nation and includes several real-world examples. Small Government Is the Recipe for Creating Rich Nations.
And there is more on bad advice from international bureaucracies.
Unfortunately, the burden of government spending in western nations has metastasized starting in the 1930s. Total outlays now consume enormous amounts of economic output and counterproductive redistribution spending is now the biggest part of national budgets.
But at least western nations became rich first and then made the mistake of adopting bad fiscal policy (fortunately offset by improvements in other areas such as trade liberalization).
The international bureaucracies are trying to convince poor nations, which already suffer from bad policy, that they can succeed by imposing additional bad fiscal policy and then magically hope that growth will materialize.
And having just spent last week observing two conferences on tax and development at the United Nations in New York City, I can assure you that this is what they really think.
Posted courtesy of your GST from the Launceston Public Library.