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The Failure of Foreign Aid
Micro-loans at the local level would do more good than 99.9% of all government projects.
27 November 2021
Micro-loans at the local level would do more good than 99.9% of all government projects.
Yes, South Africa needs more job creation, but the failure in that matter lies entirely in the hands of politicians who have plundered the economy to prop up failed state-owned enterprises. It’s SAA, not immigrant-owned hair salons, that is destroying jobs.
In simple terms they worked less because the combination of capitalism and industrialization increased the total sum of human wealth. They earned more in less time.
Why I trust people more than I trust politicians
Government interference and rising unemployment
One less obvious short-term solution is to turn title of all current state housing over to the residents. This would immediately provide capital to lots of people, which allows them to invest in their own businesses. One problem in economic development, where informal housing is significant, is residents cannot use the capital value of their homes to finance business ventures they may wish to pursue.
As I see it, it is all interconnected. Markets make that clear. Your well-being directly impacts the well-being of others around you.
Greater economic freedom and opportunity leads to greater prosperity, leading to greater gender equality followed by even higher levels of economic prosperity. It’s capitalism’s benevolent circle, the opposite of a vicious circle.
It’s time to open the market for production and allow anyone with the capital and know-how to set up facilities to produce electricity. Let them open solar or wind farms if they wish. Each independent producer can feed electricity into the power grid.
One can become wealthy because one is productive, or because one is politically connected. Some people are paid very well to run private companies because their efforts make the company more productive and improve life of the workers and the consumers.