" /> Stylized Facts: July 2017 Archives

« June 2017 | Main | August 2017 »

July 17, 2017

Growth, Not Forced Equality, Saves the Poor

Eminent philosopher, John Rawls of Harvard, articulated what he called the Difference Principle: If the entrepreneurship of a rich person made the poorest better off, then the higher income of the entrepreneur was justified.

-- Deirdre N. McCloskey, professor emerita of economics, history, English and communication at the University of Illinois at Chicago.

In South Korea, economic growth has increased the income of the poorest by a factor of 30 times real 1953 income. Which do we want, a small one-time (though envy-and-anger-satisfying) extraction from the rich, or a free society of betterment, one that lifts up the poor by gigantic amounts?