Foreign aid weakens the economy of the recipient country
If we learn anything from Peter Bauer, it is that government-to-government transfers of income do not constitute foreign “aid.” Very much to the contrary, they typically amount to foreign detriment. Much of the money goes to the three Ms: monuments, Mercedes and machine guns. The first need not be in the form of a statue of the leader: it could also take the form of a mill that produces steel at a multiple of the price available on world markets. The second includes not only automobiles, but also, invariably, engorged Swiss bank accounts. And the third is usually utilized by third-world dictators to keep the citizenry in thrall. Then, too, while foreign “aid” is a small part of the donor’s economy, it accounts for a large percentage of that of the recipients’. Instead of the best and brightest of their young people aiming at careers that can help economic development (doctors, engineers, entrepreneurs), they engage in training that will help them divert some of the boodle to themselves, and their relatives and friends (civil servants, lawyers, bureaucrats).
This is so true. It seems counter-intuitive, but it’s similar to why socialism doesn’t work, and why I do not support the Democratic party. Lower taxes and give more freedom to individuals. Government welfare programs do not work. Government-enforced wealth redistribution does not work. Government programs to help the poor do not work. It only makes people dependent and lazy. People want libery, freedom, responsibiliy, and control over their lives.
7 months ago