The Wall Street Journal-20080201-Government- Not Capitalism- Hurts the Poor

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Government, Not Capitalism, Hurts the Poor

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In regard to "Bill Gates Issues Call For Kinder Capitalism -- Famously Competitive, Billionaire Now Urges Business to Aid the Poor" (page one, Jan. 24): The poor cannot create wealth by buying themselves out of poverty. If Bill Gates wants to help the poor countries of the world, his campaign should focus on the hindrances to escaping poverty. It is not capitalism, but the absence of true capitalism and economic freedom that suppresses wealth building.

He should encourage countries to eliminate corruption, reduce crime, improve infrastructure, protect private property, reduce taxes, enforce contracts, support the rule of law, encourage savings, encourage investment, educate the population, become self-sufficient in food production and stop fighting with their neighboring countries. Capitalism is not failing the poor; the governments are failing the poor.

It also would help if all other countries abandoned anti- capitalistic and protectionist acts such as enacting high tariffs and providing price supports for their domestic products.

Wealth is not created by buying -- wealth is created by producing. Estonia and Ireland are two great examples.

Dan Agan

Houston

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I find great truth in Bill Gates's ideas as expressed in the Journal. Opening up markets in third world/poor countries makes great business and humanitarian sense. It's a little known fact that the impoverished have proved to be ambitious when given the opportunity to better their plight -- making them simultaneously a viable commercial market and a humanitarian project with hope. Bill Gates has to be commended for careful investment of funds to help build those peoples/markets from the ground up -- kindling the fires of capitalism in their humble quarters, for a larger flame to take hold and grow in time. It's entirely doable, and it is time now to invite the poor into the larger world economy, which will help international relations with those countries, strengthen the world economy, provide an example around the world for other Western nations to follow, and foster our image of compassionate economic leadership to nations around the world.

Michael Zucker

Evanston, Ill.

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I agree with Mr. Gates's call for "kinder capitalism." However, I am concerned with his dislike of William Easterly's comment "that all the aid given to Africa over the years has failed to stimulate economic growth on the continent." Even Mr. Gates cannot disagree that this is because the unintended result of billions in foreign aid has been to sustain corrupt and greedy governments, as immoral leaders and their cronies have shamelessly lined their pockets and their bank accounts rather than using the money to help their people.

Just as Mr. Gates is concerned with creating a financial incentive to help the world's poor, he should be equally concerned with how foreign aid money is disbursed so that the financial incentive to perpetuate the cycle of poverty by these leaders can finally be eliminated.

Barbara Hevia

Miami