Bloomberg Columnist: What About Global Welfare Mothers?

Andy Mukherjee usually offers up respectable columns for Bloomberg on the Asian finance beat, but today he offers up world class drivel, lamenting that the US government is spending its money lavishly on its own citizens rather than the citizens of poorer Asian nations. Now, I don't think the aforementioned effort at "stimulus" is worth a hill of beans, but even more illogical than the transfer payment of certain American resources to certain Americans, is the demand for these transfers to go to Asians. Apparently, focusing on your own nation's economy, (in however a misguided fashion) rather than other countries' economies is "home bias." Yeah, can you believe that I only buy my children food and clothing to the complete neglect of your children? Indeed, I am an execrable character with my detestable "home bias." Beyond trying to build an argument on this bizarre foundation, Mukherjee completely misses the mark because the stimulus package, regardless of where it is aimed, will benefit Asian workers over American ones. Tax rebate checks in hand, Americans will buy flat-screen TVs, shoes, clothing and all manner of Asian produced goods. Almost certainly they will not buy Boeing planes, mutual fund shares, non-invasive surgery or other characteristically American products and services.

Decades of largesse have apparently bred a sense of entitlement, if not among poor workers in Asia at least among financial columnists. After decades of succumbing to feel-good campaigns aimed at eradicating global poverty, the West has created a global class of welfare mothers, and their advocates, who don't see international aid as generosity but as their due and proper.

Earth to Andy. Asians don't have to hope for rebirth to escape poverty; they have to demand that their governments commit to free market reforms, studiously avoid restricting trade, entrepreneurship and capital formation, and strengthen institutions that permit capitalism to flourish. For more on this, check out Russ Robert's podcast with Bill Easterly.

UPDATE: In one of those cosmic coincidences, last night, as I was reading Amity Schlaes The Forgotten Man, I got to the part where Roosevelt sought to start defunding the WPA. FDR intended it to be a temporary program and warned the government couldn't pay for it forever. No matter though, once aid and assistance is administered long enough, people feel they are entitled to it. Of course, WPA workers went on strike.