Saturday, December 11, 2010

Third World Wal-mart

Okay, maybe not a Wal-mart, but a super-store none the less.

I have a problem with the way we donate to other countries.  By giving people items we aren't helping them as much as we could be.  If you give someone a t-shirt they are the only ones who benefit from that shirt.  If however you sell them the shirt at the price of a job, then you've created value that can pass from person to person.

I believe that if rather than give articles to under privileged people we instead gave them tasks and paid them that we could vastly increase the scope of our donations.  We could build a store, paying workers in food collected as donations.  Next we'd hire day workers and pay them similarly.  Once the store makes money we could use that money to dig wells and build homes.  By bartering rather than giving we could make significant gains for the same cost. 

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