Why Do Some Countries Stay Poor?

[Ptarmigan]

Why Do Some Countries Stay Poor?
https://fee.org/articles/why-do-some-countries-stay-poor/

This week for Ask an Economist, I have a question from a reader named Mark. He says,

“I've worked with immigrants that recently moved to the US, and workers still living in their native country and working for me remotely.

My experience is that they're on average, much harder working and more skilled (even in technical fields) than my American colleagues. The foreigners work hard, making no excuses, grateful for the work, and take every opportunity to better themselves. Americans, on the other hand, demand much higher wages, complain about the work, and make little effort to improve themselves.

Since the people from many of these poor countries are better workers, why are their home countries so poor? Immigrants on average start more businesses and do better in the US than US born citizens. With all their skills and ambition, it seems their home countries ought to be significantly richer than the US cities, yet this isn't the case. What's the cause of these countries' poverty?”

Mark asks perhaps the single-most important question in the history of economic thinking. Why do some countries grow rich while others stay poor?

A Long History of Answers
In 1776, Scottish philosopher Adam Smith published perhaps the most influential work in the history of political economy: An Inquiry into the Nature and Causes of the Wealth of Nations.

This book, usually referred to as “The Wealth of Nations,” tries to answer the question Mark poses. Since then, wealthy countries have grown much wealthier, some poor countries have grown wealthier, but there are a substantial number of countries lagging behind.

Before we get into the right answer, we should spend some time talking about some popular wrong answers.

Economist Bill Easterly has done a great job chronicling some of these wrong answers in his book The Elusive Quest for Growth.

Easterly’s point in the book is simple. Throughout the late 20th century and into the 21st century, the United States and other countries have attempted to trigger economic growth in poor countries. These attempts have failed.

Why some nations are poor or rich? Worth reading.

[SVPete]

I would expect an article about such complex topic to be longer than I have time to read right now, so I'll put that off. Historically, IMO, a nation becoming and remaining wealthy is complex confluence of

* Natural resources availability;

* Educated and talented people;

* Governance that fosters honest entrepreneurial business;

* Governance that punishes corruption;

* A culture that places high values on and rewards honesty and a strong work ethic.

Looking at the US: Enviros and Envirocrats are working to force natural resources out of use and to kill farming; education is being dumbed down; skilled trades people are demeaned; successful honest business people are targeted; successful businesses are milked for $$; regulations, taxes, and fees discourage starting new businesses; the highest levels of Federal and many states' governments are corrupt; theft is encouraged by ______ won't miss it and I am owed culture; hard and smart workers are derided as suckers and geek-freaks.

[Old n Grumpy]

Manufacturing goods from local resources to export. That’s the fountain of wealth.

With out money coming in from outside a country can’t get rich.