Filed under: Africa, Capitalism, Domestic Policy, Economy, Free Markets, Freedom, History, India, The United States | Tags: Number One in the World, Starvation Famine & Disease, the American Economy
Here at home, the plumbing disaster has evolved into a replace a bathroom adventure. Sorry about the light blogging, but some days that just the way it goes. This is merely the beginning.
So I will turn to good news for a change. How’s this for a headline? “The Era of Great Famines is Over” Here’s Paul Ehrlich writing in The Population Bomb in 1968,
The battle to feed all of humanity is over. In the 1970s hundreds of millions of people will starve to death in spite of any crash programs embarked upon now. At this late date nothing can prevent a substantial increase in the world death rate.
—India has been suffering from widespread drought in 11 states across the country, yet the country’s foodgrain production is actually set to grow marginally, the third advance estimates released by the agriculture ministry on Monday showed. The grain production for human consumption for 2015-2016 is estimated at 252.23 million tons, marginally higher than the 252.92 million tones produced in 2014-2015 according to the data. If the estimates hold up, it implies that the damage to the farm economy is less than was feared, but also demonstrates a bit of resilience of Indian agriculture to a deficit monsoon.
—Ethiopia is moving from being “the world’s symbol of mass famines to fending off starvation.” Ethiopia could choose to avoid another disaster because “Famine isn’t caused by overpopulation, and as Ethiopia’s experience shows, it’s not a necessary consequence of drought. Politics creates famine, and politics can stop it.” The New York Times, May 8 , 2016
—South Africa aims to be malaria free by 2018. The National Health Department in confident that they can reduce locally transmitted cases to zero, because they have already managed to reduce cases dramatically.
Malaria accounts for 40 percent of all public health spending on the continent, killing up to 438,000 people each year mainly in sub-Saharan Africa.
But, the World Health Organization (WHO)’s world malaria report for 2015 states that there’s been a major decline in global malaria cases and deaths since the year 2000, with the mortality rate decreasing by 60 percent.
—In the middle of the political season, everyone seems to be angry, unhappy with Congress because they didn’t stop Obama from using his phone and his pen to accomplish all the things that he could not get through Congress, and decided to accomplish by executive order.. The media is fascinated with following unpredictable candidates around, so we aren’t hearing all that much from the rest of the world. From Guy Sorman at City Journal:
Worry over America’s recent economic stagnation, however justified, shouldn’t obscure the fact that the American economy remains Number One in the world. The United States holds 4.5 percent of the world’s population but produces a staggering 22 percent of the world’s output—a fraction that has remained fairly stable for two decades, despite growing competition from emerging countries. Not only is the American economy the biggest in absolute terms, with a GDP twice the size of China’s; it’s also near the top in per-capita income, currently a bit over $48,000 per year. Only a few small countries blessed with abundant natural resources or a concentration of financial services, such as Norway and Luxembourg, can claim higher averages.
“America’s predominance isn’t new; indeed, it has existed since the early nineteenth century.” By the 1830s American per-capita income was already the highest in the world. It wasn’t just our size and natural resources, for other countries had those attributes.
They couldn’t compete with Americas strong intellectual property rights. The U.S, Constitution was the first in history to protect intellectual property rights, and “secured for limited times to authors and inventors the exclusive Right to their respective Writings and Discoveries.” Two hundred years later, the U.S. has more patents in force —1.8 million—than any other nation. American wages were significantly higher than those in Europe, which meant that landowners needed high levels of productivity, which meant that the mechanization of agriculture got under way in America before it did overseas.
America’s enormous territory and “the freedom people had to move and work across it” encouraged an advanced division of labor, which is essential to high productivity.
Globalization is having the same effect today, making prices drop by assigning the production of goods to countries that are relatively efficient at making them.
Immigration has been another component of American economic dynamism, for evident quantitative reasons: national GDP grows when total population and productivity increase simultaneously. But this effect has worked particularly well in the United States because its immigrants have tended to be young, energetic, and open to American values. Immigration is a self-selecting process: those who find the courage to leave behind their roots, traditions, and family often have an entrepreneurial spirit.
Guy Sorman adds:
In the current sluggish economic environment, the remarkable history of American dynamism is thus more instructive than ever. America’s economic might is rooted in an entrepreneurial culture and a passion for innovation and risk-taking, traits nourished by the nation’s commitment to the rule of law, property rights, and a predictable set of tax and regulatory policies. Policymakers have lost sight of these fundamental principles in recent years. The next era of American prosperity will be hastened when they return to them.
Do read the whole thing. It’s not long.
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