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October 06, 2004

Wealth Eliminates Poverty

The fastest way to reduce the number of poor people is to create more rich people. This reduces poverty in two ways:

1. Rich people invest in people. Ambitious people. If a poor person is ambitious, they will be an investment opportunity. They will begin their own journey to wealth.
2. Rich people spend money to acquire products and services. Those products and services have to be produced and delivered. Jobs are created to deliver new products and new services.

Wealth also drives generosity. The ability to care for those who cannot care for themselves increases with wealth.

Thus policies that increase wealth will reduce poverty. Policies that reduce wealth in an attempt to use that reduction in wealth to reduce poverty will find that poverty actually increases.

Posted by creagb at October 6, 2004 07:12 AM