Requirement for economic growth


If our economic policies have succeeded, the subsequent history of this beautiful world is likely to follow the history of many countries that adopted socio/political policies for a while, and not to reject them, after their success became obvious. The governments of many countries have adopted socio/economic policy as a strategy.  

Desperate people welcome new ideologies, so it is not surprising that the people would welcome new ideas. Initially, they would fare well with land redistribution and job creation for all who apply. No starvation would exist and everyone who wanted to work would be able to do so. However, the dream will never ends.

To develop economically, a nation must be able to import goods and services that it can't provide itself from other countries. To trade, one must have something worth while to sell to the people of other countries. Tourism is insufficient. Therefore, the government has to build an infrastructure including electric power, communications, water supply and transportation, as well as provide education. This takes time and money. Where to obtain the money? 

Therefore, after some initial success, the people would continue to be poor, if we fail to work hard because we need to work twice as hard to get the economic results. Another problem with some socio/political policy is if our lack of providing incentives to the people. It has been shown time and time again informally that people will not work hard when the product of their efforts mainly benefits others rather than themselves. People are selfish in this way. However, we know that we need intellectual and physical labor of people in order to benefit the community and country.

A good economic system features selfish incentives for creative and hard working people. It is a system where selfishness benefits both the producer and the consumer, since the latter is the final arbiter of what is sold, as "the consumer is king." Since if our economy will lack adequate incentives, its workers will not produce well. Furthermore, in the  policy endeavor to provide jobs for everyone, labor costs will escalate, thus making prices uncompetitive in world markets. Therefore, the economy will not be competitive, and it will be unable to import goods and services in sufficient quantities. The result will be that its people will continue to be poor.

Eventually, the general population would become so dissatisfied that opposition groups could win their support. The people would be no better off than before, except for those in the power who would line their own pockets in the meantime.  Equality and incentive are mutually incompatible.