Free Enterprise and Poverty: Cause or Cure?
15 Pages Posted: 13 Jul 2011
Date Written: 2007
Poverty in general is created by governmental mismanagement. The solution to the problem is the free enterprise system. Markets reduce poverty by promoting incentives and rational economic activity. Governments exacerbate it by attacking private property, regulating business, and through taxation. The problem of black poverty stems mainly from the breakup, nay, the failure to form, of the black family. This, in turn, is traced to governmental welfare programs.
Keywords: poverty, free enterprise, socialism, central planning, government regulation, laissez faire capitalism
JEL Classification: I3, I38
Suggested Citation: Suggested Citation