Monday, November 1, 2010

The State cannot create wealth

Mr. Federico Alvarez in a quite interesting article attributes Honduras's poverty to two main causes: we are not creating enough wealth and corruption. Interestingly, Mr. Alvarez argues that corrupt governments lie to their people to cover up their transgressions. Furthermore, the worst transgressors are those that start believing their own lies and thus try to make it a "state philosophy." Hmmm...who(m) could that be??? Article is here 
Adam Smith and Karl Marx..Who do you follow and why?

An important annotation in Mr. Alvarez article is that the state cannot create wealth for its citizens. Many countries have understood this simple yet powerful maxim including Singapore, Russia, Vietnam and China. By the way, the later two countries have been used by some leaders in Honduras's left to show the alleged benefits of "socialism" as a state doctrine. Big mistake!! that line of argumentation shows the inconsistencies or even the lack of knowledge about marxism itself (one cannot blame for being bad students of their own philosophy, worse implementers, can't we?) or history itself.

In fact, both China and Vietnam tried to completely build an economy based on the state and failed miserably. Many millions of Chinese and Vietnamese paid blood, sweat, tears and their own lives for this experiment. It was only, when China and Vietnam allowed competition and limited capitalism in their economies, that these economies thrived. Of course they are exploiting the largeness of their economies and the fact that they can still produce with cheap labors and very little union protests...certainly strikes and public demonstrations have been dealt severely in the past.

Maybe some of the "Resistencia" people should go to China and try and organize a public demonstration in Tiananmen squares and see the reaction...

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