Economic Development

It is a common view that government drives economic growth and development. This is the old myth of central planning. In fact it is the market economy, not the state, that produces growth. The government has no resources on its own and must get all the money it has by taking it from the private sector, in one way or another. It can do this and spend it on development, but without the price mechanism identified by such great economists as F. A. Hayek and Ludwig von Mises, the government is unable rationally to allocate these resources in a way more suitable for the whole of society than can the market operating on its own. In the process, the government undermines communities and steps on property rights.

Learn more about Economic Development problems and solutions:

“Earthquakes and Economic Development”
William F. Shughart II (San Francisco Chronicle) January 21, 2010

“How Land-Use Planning Benefits Big Business Over Small”
Bruce L. Benson (The Freeman) May 1, 2008

“Kelo: Taking the E.D. out of Economic Development”
Edward J. López (North County Times) June 23, 2006

“Making Poor Nations Rich: Entrepreneurship and the Process of Economic Development”
Benjamin Powell (book summary)

See Also:

The Independent Institute Archive on Economic History and Development (International)
The Independent Institute Archive on Economic History and Development (U.S.)
The Independent Institute Archive on Economic Policy
The Center on Global Prosperity