Claim: Primary controllable cause of poverty in the developing world is low incentive for the poor to develop formal wealth.
No, this is absurd. Poor people do not respond to complex tax incentives; in most cases they don’t have the education or information to even comprehend them. The primary causes of poverty in the developing world are lacks of resources of various kinds (capital, education, nutrition), which are themselves caused by past poverty, in a self-reinforcing cycle.
Poor people do not respond to complex tax incentives; in most cases they don’t have the education or information to even comprehend them.
Tax incentives aren’t the incentives I’m talking about here. I’ll point you to de Soto again, as he makes the argument much more convincingly than I can.
The primary causes of poverty in the developing world are lacks of resources of various kinds (capital, education, nutrition)
This agrees with de Soto’s view, but the resource he focuses on is “trust,” which can be developed by developing the legal systems.
No, this is absurd. Poor people do not respond to complex tax incentives; in most cases they don’t have the education or information to even comprehend them. The primary causes of poverty in the developing world are lacks of resources of various kinds (capital, education, nutrition), which are themselves caused by past poverty, in a self-reinforcing cycle.
Tax incentives aren’t the incentives I’m talking about here. I’ll point you to de Soto again, as he makes the argument much more convincingly than I can.
This agrees with de Soto’s view, but the resource he focuses on is “trust,” which can be developed by developing the legal systems.