Angus Deaton - A foreign aid skeptic
Posted: Thu Oct 15, 2015 7:00 pm
http://www.liveleak.com/view?i=1f5_1444 ... XSRHUs5.99Angus Deaton received an award for economics by studying how the poor saves and spends money.
But what Nobel did not realize is that much of his other work studies how third world countries actually SUFFER from foreign aid. In other words, that "We are the World" stuff is a load of crap. And this is why, people and their government have a social contract. The government acquires wealth and power from the people (the governed), who decide as a collective how much the government will be allowed to limit their inalienable rights. (In America that "break glass in case of an emergency" is defined by the Second Amendment, the right of the people to own guns.) So, it is a sensitive balance of power. However, when foreign aid is given to the government of these countries that balance is thrown out of whack. Now the leaders having received that enormous wealth are no longer bound to serve the people. Those governments distribute that newly acquired wealth according to their will, not the will of the people. That social contract is shattered. And depending on the "Absolute's Power" to be corrupt absolutely, the governed may never regain the power needed to topple the tyrants who begin to stuff ballot boxes, execute competitors and imprison activists.
Nobel-winning economist Angus Deaton argues against giving aid to poor countries