Addressing The Poverty Of Nations

This is family policy matters program is produced by the North Carolina family policy Council of profamily research and education organization dedicated to strengthening and preserving the family, and often the studio hears John Rushton, president of the North Carolina family policy Council joining us this week for family policy matters. It is a pleasure to have Dr. Barry Asmus with us on the show. Dr. Rasmussen is a senior economist with the national Center for policy analysis, a national think tank to promote private sector market-based solutions. He has been twice devoted University Prof. of the year and was honored with the freedom foundation at Valley Forge award for private enterprise. Education Dr. Asmus is the ultimate non-books in his latest, which he co-authored with Dr. Wayne Gruden is entitled the poverty of nations. A sustainable solution, Dr. Asmus is with us today to discuss some of the important issues addressed in that book, Dr. Asmus. Welcome to family policy matters delighted to be here. Thank you so much well were delighted to have you and appreciate you taking time out of your schedule to be with us today Dr. Asmus. The book begins by emphasizing that the solution to poverty is not economic equality for everyone think this is a common assumption that many people draw when they think about how to solve the problem of poverty that if we can put everyone attempt to put everyone on a level playing field so to speak that that will take care of poverty issues what is economic equality, not a viable solution. I think the main reason is because it does not work. Equality is not incentivizing quality does not bring out the best in and most people and so healthy economy needs the best of the ballast could be rewarded as the best, not as equal. So in a state form company concrete that is tried communism.

The essence of communism abolish private ownership will go for quality problem with everybody's business. It's nobody's business. When everybody owns it. Nobody owns it and that's not my point. Equality just simply does not incentivize people and if you don't incentivize people no way to increase production poverty of nations. You argue against a number of the more popular efforts being made by governments and relief organizations, including some religious groups to address poverty on a national scale. One of these is that poor nations simply need more international aid. Why is this a bad solution to national poverty. Once again, it's because of those things now.

Dozens and dozens of books written on this issue and if it worked. Of course you want more international aid. One book after book says we spent $700 million with $30 billion. You know that something is by and large, long emphasize that you can take from one group of people, one country and give equally to another.

I wish it worked but it didn't in fact and in fact it has the reverse effect. It not only doesn't work. It makes it worse.

Doing bad by doing good, really. And it's kind of it's kind of pathetic that were up to the 21st century and we still think that helping people to become helpless is an act of kindness. It is not an act of kindness. It's a direct affront to them that one of the things we hear about the American economy.

I'm sure the supplies and in other countries around the world is this whole notion of redistribution of wealth and this is another effort that you addressing in your book that an attempt to create more economic equality through the redistribution of wealth is really a failed policy. Your approach, explain how this works and why it is not a viable solution to helping improve economic conditions of poor nations will be issuing a goal is production, not redistribution. Redistribution does not increase a nation's wealth at all.

It just redistributes it and does increase it.

We have to do and have every member of the fire as many members of the size we can get productive welfare has never accomplished that paying people not to work, and they don't work. Incentives matter when you reward an economic activity you get more of it. When you penalize that economic activity you get less of it. So the whole idea is how can we increase production. How can we increase national wealth and when we do that than on a per capita basis. It flew through the economy and everybody benefits. It's win-win when everybody specializes in trades when you're talking with some countries. If we don't have some of the cultural issues reinforcing this we can never make it happen to the next question in the book of the nation really has to have the right goal in mind in order to overcome poverty, help us understand what that right goal is if you are going to present a mission statement or a focus statement to the nations of the world, what would that look like and and what goals would you like out will know the thing on the power of incentives in the right goal.

We we know for fact as we look down through history. What has not and will not work. Hunting and gathering subsistence farming, tribalism, note that the work of feudalism, note mercantilism know of socialism not really communism, not really.

Every one of those long for them to be put in place. What is the system that will reach in and grab human beings and help them become the best and help them to produce and help them to create and help them to innovate.

The beautiful thing about being created in the image of God.

God, the great Creator and we're the little cell creators and and he is God is blessed when we create and weight limit inability innovate and we just simply have to allow that to happen and not squelch it. That's really exciting way to put it in a really great perspective to have on this because I think we will all recognize that we are not only made in the image of God and weld by God with certain gifts and talents and skills that he desires for us to use for work.

I think ultimately to bring glory and honor to him, but also to be prosperous and to be productive and have purpose and mission and focus in our lives. I think that's a great aspect that folks generally really need to understand. I know that you and Dr. Gruden argue in the book for a free market economic system, but you contend that this is not only the best system but is also based in biblical principles explain a few little bit more about that you touched on it, but I wanted to get into this a little bit further for listeners will a free market system you come to that conclusion because you find out all the others don't work and when they don't work and they don't raise well when they don't create production. They don't move, nation, poverty, UU, state what does the system that takes economic production and consumption and puts it in the hands of individuals. The free choices of individuals rather than government and then if you ground all that in private ownership.

I am so glad that Thomas Jefferson won his argument with Ben Franklin on the national bird Ben Franklin wanted a turkey and and Thomas Jefferson wanted an eagle, the Eagle, you know, keen eyes pierced be piercing flying powerful wings. The symbol of economic freedom, the ultimate symbol of production, the free market system is a fundamentally senseless and let all the economic activities be coordinated by the activities of millions and millions and millions of people don't begin to think that you can from central direction top down command and control, no, no, no, let it be voluntary cooperation. Let it really be the technique of the marketplace that is what will work. One of the key points that you make in the book is free market system best promotes society in what specific ways does a free market system, promote values and why is this important to lifting a nation out of poverty. When you emphasize some of the main moral values. It was always direct yourself to place a high value on work. The book of Proverbs is a slack hand causes poverty, but the hand of the diligent makes rich problems also for all Thessalonian Christians to work with your hands will instruct you and be dependent on no one to keep away from any brother who is walking in idleness, I don't even says that if anyone is not willing to work, letting not eat. We really just see over and over in the Bible this thing called high value on work. I think in America we, take that for granted because I think Americans by and large, like, work hard, and so that's certainly not much of a message that you can preach to Americans but to many many societies with different cultures.

They put a low low priority on work and this is just very very hurtful when it begins to occur, and it shows up and down the whole system question close out this was most helpful parts of the book, the poverty of nations is that it includes an appendix detailing 78 distinct factors that you believe will help nations overcome poverty. We obviously don't have time to discuss all 78, but they are broken down into four broad categories. If you will briefly describe each category for us and tell us why these components are so important to a sustainable solution to poverty for our nation's economic system. The second one is a nation's government.

The third one is how they feel about freedom and for what nation values its cultural values but back to the top economic system. If we could figure out any way to make most economic systems have been tried down to hundred thousand of your work.

It seems to us only one that works is a free market system based on strong private ownership creates the right incentives and and economic freedoms fire higher save and invest, etc. secondly, the nation's government, allowing people free to choose alone.

Instead, to do it from top-down command-and-control rules and regulations. Instead of that allow each of the citizens to be involved in this process, the bigger the government the smaller the citizen, the AAA government big enough to give you everything you want is also big enough to take everything you have and so inevitably governments get when you way too big, very oppressive, and they become progress resistant rather than progress.

Prone number three freedom.

Freedom is the mainspring of human progress, more freedom, more bread, more freedom, more per capita income. Freedom is such a critical critical factor allow people the freedom to live and to do and to move and hire and fire and don't throw roadblocks all along the way. And that's exactly what governments to its interesting every country that we have spoken to. If we've got to speak to a high official and what we found is in country after country, there are so many roadblocks that even even start a business that they can't get in and get going.

So freedom is absolutely critical.

I tell you what. When people believe there is a God's people accountable. Amazing the things that come out of that when I really believe there is a God. I will be truthful, I will be honest in my relationships with people. Now that is so beautifully buttressed by the free market system because you have repeated voluntary exchanges I come to you and by some might like to come back again and again and again what's going on there longer exchange, yes, but I keep coming back because why you are truthful you honest you didn't try reading over the coals. You and so there's something about a free market system that causes some truthfulness and honesty that not only does everybody appreciate but it really helps an economic system to grow while that is a great way to bring our discussion to a close. Dr. listeners go to obtain a copy of the poverty of nation will go to Amazon.com in Christian bookstores. Most Christian bookstores, but Amazon.com is probably the quickest way as I really appreciate you sharing your heart with us and I really want to encourage our listeners to go on Amazon.com when they visit their local Christian bookstore to look for the poverty of nations written by Dr. Barry Asmus and Dr. Wayne Graham, Dr. Asmus, I just appreciate your time so much and all that you have done to invest in this work, and again want to encourage our listeners take advantage of that. So thank you so much for taking time out of your schedule to be with us on family policy matters and for sharing these wonderful insights with my delight's family policy matters is information and analysis feature of the North Carolina family policy Council discussion on policy issues affecting the family. If you have questions or comments. 919708 visit our website family.org