Archive for the ‘giving’ Category

Adam Smith did not let his left hand know what the right was doing

August 21, 2012

Adam Smith, the father of laissez-faire economics, gave away substantial sums of his own money to less fortunate people, though he did so with such discretion that this fact was discovered only after his death, when his personal records were examined. Henry Thornton, one of the great monetary economists of the nineteenth century and a banker by trade, regularly gave away more than half his annual income before he got married and had a family to support-and he continued to give large donations to humanitarian causes afterwards, including the anti-slavery movement.

 

Sowell, Thomas, Basic Economics: A Citizen’s Guide to the Economy (Basic Books, 2004) p.359

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Official aid is more likely to retard development than to promote it

August 21, 2012

Official aid is more likely to retard development than to promote it.

Professer Peter Bauer, LSE

Sowell, Thomas, Basic Economics: A Citizen’s Guide to the Economy (Basic Books, 2004) p.340

This is due to it going to governments directly whose officials can use it for their own political advantage etc. Not to mention that aid does not incentivise the growth of industries in poorer countries but can foster dependence. This is not to say money should never be given, but that we should be wise in our giving. Stated goals are not the same as actual consequences.