Government Class

Foreign Aid Programs

Foreign aid programs were started to help countries get out of poverty. These programs, however, did not work at all. The countries that took the aid did not recover. Yet the countries that did not get foreign aid recovered quickly and became prosperous. So why was it that the countries that took foreign aid did much worse than the countries that took little or no foreign aid? The reason is that when a country received foreign aid the government would get bigger and the economy could not grow because there was a lack of freedom. On the other hand, when a country did not receive much or any foreign aid the government was not as big. Without big government, regulations, and taxation the economy could grow and produce goods. This is how those countries recovered quickly by using private property and an entrepreneurial spirit.

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