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	<title>Comments on: Why are poor nations poor</title>
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		<title>By: Name</title>
		<link>http://cafehayek.com/2009/07/why-are-poor-nations-poor.html/comment-page-2#comment-182391</link>
		<dc:creator>Name</dc:creator>
		<pubDate>Wed, 23 Sep 2009 16:02:00 +0000</pubDate>
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		<description>A politically liberal friend just gave me an article by Stiglitz titled &quot;Stimulate or Die&quot;.  I was considering how to rebut it when I came across this article.

If government stimulus is supposed to revive moribund economies, why do massive World Bank funded projects and foreign aid fail to lift African countries out of poverty?  In fact, using the Keynesian tactic of confusing correlation and causation, one would conclude it exacerbates poverty.  Given that aid involves no increase in public debt and that much of the debt connected with major infrastructure projects will be eventually forgiven, these stimuli should be even more effective than what Krugman and Stiglitz propose we need in the US.  Is it possible that government is generally ineffective in deploying investment capital and that increases in exogenously derived (as I would describe federal government spending funded by Chinese t-bond buyers) social spending provides no long term benefit, beyond a short-term voter palliative?</description>
		<content:encoded><![CDATA[<p>A politically liberal friend just gave me an article by Stiglitz titled &#8220;Stimulate or Die&#8221;.  I was considering how to rebut it when I came across this article.</p>
<p>If government stimulus is supposed to revive moribund economies, why do massive World Bank funded projects and foreign aid fail to lift African countries out of poverty?  In fact, using the Keynesian tactic of confusing correlation and causation, one would conclude it exacerbates poverty.  Given that aid involves no increase in public debt and that much of the debt connected with major infrastructure projects will be eventually forgiven, these stimuli should be even more effective than what Krugman and Stiglitz propose we need in the US.  Is it possible that government is generally ineffective in deploying investment capital and that increases in exogenously derived (as I would describe federal government spending funded by Chinese t-bond buyers) social spending provides no long term benefit, beyond a short-term voter palliative?</p>
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		<link>http://cafehayek.com/2009/07/why-are-poor-nations-poor.html/comment-page-2#comment-55816</link>
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		<pubDate>Thu, 13 Aug 2009 09:26:00 +0000</pubDate>
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		<link>http://cafehayek.com/2009/07/why-are-poor-nations-poor.html/comment-page-2#comment-55797</link>
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		<link>http://cafehayek.com/2009/07/why-are-poor-nations-poor.html/comment-page-2#comment-55687</link>
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		<link>http://cafehayek.com/2009/07/why-are-poor-nations-poor.html/comment-page-2#comment-55607</link>
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