Why are some countries rich and some countries poor? Is it access to natural resources? Is it tax policy? A motivated work force? These are important, but not determinative. The answer is deceptively simple – it’s what’s in our heads: knowledge. Thus, the surest way to promote economic growth is to cultivate an environment that encourages the spread of knowledge. Such an environment requires freedom, which is why the freest societies are the most prosperous. In five minutes, economist George Gilder explains why.
Instead of redistributing wealth – create more wealth. And when you do that it flows through all of society. The rich get richer but the poor get richer also. This is why the United States has a wealthier economy than say Peru or Uganda or Egypt. Everywhere you have the same human beings with the same capacities and the same abilities to lift themselves into a better way of life. But in many societies innovation is stifled, education is lacking and freedom is paltry. So the key words here to create more wealth are EDUCATION (knowledge) and FREEDOM. Unfetter the human spirit and greatness will be forthcoming. The freest societies are free market Capitalistic societies. They are the ones that lift people out of poverty. But without an increase in wealth you end up only redistributing misery.