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The Secrets of Intangible Wealth
The Wall Street Journal | September 29, 2007 | Ronald Bailey

Posted on 09/29/2007 7:27:46 AM PDT by conservatism_IS_compassion

A Mexican migrant to the U.S. is five times more productive than one who stays home. Why is that?

. . . It is because the average American has access to over $418,000 in intangible wealth, while the stay-at-home Mexican's intangible wealth is just $34,000.

. . . [Intangible wealth is] factors - such as trust among people in a society, an efficient judicial system, clear property rights and effective government [and education].

. . . Once one takes into account all of the world's [land and] natural resources and produced capital [such as buildings and machinery], 80% of the wealth of rich countries and 60% of the wealth of poor countries nations is of this intangible type.

. . . In the U.S., according to the World Bank Study [Where Is the Wealth of Nations?: Measuring Capital for the 21st Century], natural capital is $15,000 per person, produced capital is $80,000 and intangible capital is $418,000 . . . [whereas] oil-rich Mexico's total natural capital per person is $8,500, produced capital is $19,000 and intangible capital is $34,500.

. . . The big question is . . . How can the people of the developing world rid themselves of the kleptocrats who loot their countries and keep them poor?


TOPICS: Business/Economy; Foreign Affairs; Mexico; Philosophy
KEYWORDS: aliens; economics; immigration; mexico; wealth
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How can the people of the developing world rid themselves of the kleptocrats who loot their countries and keep them poor?
Uh . . . certainly that is and always has been the $64,000 question. One thing that doesn't help is the Newspeak designation of nations whose governments systematically suppress intangible wealth as "developing" countries. When what they are is nondeveloping countries. Truth is part of intangible wealth, and kowtowing to those who demand that no one tell the truth is the very last thing that will help.
This is in the dead-tree op-ed page, but didn't show up in opinionjournal.com and so I typed this in. It may likely exist in WSJ.com, but I don't subscribe to it and thus wouldn't know.

This is IMHO an important article.

1 posted on 09/29/2007 7:27:50 AM PDT by conservatism_IS_compassion
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To: conservatism_IS_compassion

Look for some presidential candidate suggest we’re guilty of something for having these intangibles...


2 posted on 09/29/2007 7:30:09 AM PDT by Eric in the Ozarks (Go Hawks !)
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To: conservatism_IS_compassion

Actually corruption or no, the intangible wealth of the developing world has been rising very quickly. I’m really interested to see how the $100 laptop changes the developing world. I expect it to lead to very rapid economic growth.


3 posted on 09/29/2007 7:32:59 AM PDT by ketsu
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To: conservatism_IS_compassion
How can the people of the developing world rid themselves of
the kleptocrats who loot their countries and keep them poor?


By moving to the one country that won't just kick them back into
their native failed states.

Mostly that is The United States of America.
But nice places like Canada and the U.K. are also suckers as
well for these invaders.
That are just "cut-and-run" cowards that won't "stand and fight"
to fix the hell-hole countries they run from.

And I don't blame them for doing it.
As long as we (USA), Canada, and the UK are foolish enough to
take them in, give them food, homes and cable/satellite HDTV.
And no taxes (effectively).
4 posted on 09/29/2007 7:32:59 AM PDT by VOA
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To: Obadiah; Mind-numbed Robot; Zacs Mom; A.Hun; johnny7; The Spirit Of Allegiance; ...
I think this article is significant.

Not only is it clear why Mexicans might emigrate to the U.S., it is clear why Americans who have no desire to persecute people who live in straited circumstances abroad are adamantly opposed to allowing them to export their culture to the U.S.


5 posted on 09/29/2007 7:33:03 AM PDT by conservatism_IS_compassion (The idea around which liberalism coheres is that NOTHING actually matters except PR.)
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To: conservatism_IS_compassion

Got a link?


6 posted on 09/29/2007 7:34:19 AM PDT by Sidebar Moderator (All work and no play makes Sidebar a dull Mod)
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To: conservatism_IS_compassion

This is of course on WSJ.com, is copyrighted just like all the other Wall Street Journal content, and is therefore covered by their prohibition on our posting it on FR.

I don’t believe that changes simply because you typed instead of cutting/pasting.


7 posted on 09/29/2007 7:36:56 AM PDT by Redbob (WWJBD - "What Would Jack Bauer Do?")
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To: VOA
That are just "cut-and-run" cowards that won't "stand and fight" to fix the hell-hole countries they run from.
The illegals are quite patriotic. Just for the wrong country. Illegals suck 10.5 billion from America each year and send it to Mexico. They're also, slowly but surely, occupying this country. Raising the mexican flag over New Mexico University wasn't an accident. They intend to take *all* the back into Mexico.

Know your enemy brother. Know your enemy.
8 posted on 09/29/2007 7:37:15 AM PDT by ketsu
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To: Sidebar Moderator

This is of course on WSJ.com, is copyrighted just like all the other Wall Street Journal content, and is therefore covered by their prohibition on our posting it on FR.

I don’t believe that changes simply because it was typed instead of cutting/pasting.


9 posted on 09/29/2007 7:38:09 AM PDT by Redbob (WWJBD - "What Would Jack Bauer Do?")
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To: conservatism_IS_compassion

An important article, indeed: but what are some other forms of intangible wealth here in the U.S.?

A generally honest police force that does not accept bribes.

Gun rights: if I don’t have a gun, other citizens do, and the criminals don’t know the difference.

A sound currency, banking and financial system.

A military defence which makes foreign invasion a near impossibility.

A generally responsive democratic form of government.

I’ll think of more, later. Maybe a week spent in Mexico will help.


10 posted on 09/29/2007 7:39:34 AM PDT by elcid1970
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To: Eric in the Ozarks

Look for the Democrats to suggest that we tax these intangibles.


11 posted on 09/29/2007 7:44:24 AM PDT by Free_in_Alabama
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To: Redbob

We can have WSJ excerpts here. Just not the entire article or column. I later noticed the poster’s comment about typing it from the dead-tree edition.


12 posted on 09/29/2007 7:46:09 AM PDT by Sidebar Moderator (All work and no play makes Sidebar a dull Mod)
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To: conservatism_IS_compassion

We make more money here in the US so we should share.

Socialist redistribution of wealth philosophy.

Mexico has a lot of opportunity for it’s citizens.
Corruption has limited the ability of citizens to impove their economics. So it is easier for them to violate the laws of the US by working here illegally.


13 posted on 09/29/2007 7:50:11 AM PDT by o_zarkman44 (No Bull in 08!)
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To: conservatism_IS_compassion

BTTT


14 posted on 09/29/2007 7:51:54 AM PDT by E.G.C.
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To: VOA
We used to support a lot of local freedom fighters in the 1800’s. Garibaldi, Cuban separatists from Spain. Most done privately. They would come to the US, raise money and buy US weapons.

That is all too much libertarian for todays entrenched political class. Any action anywhere without the elites say so is verboten. No telling where it might go. Too bad, Mexico could be liberated in weeks by Mexicans in the US. However the Mexican elite throw such good parties, and they have such nice clean houses, and are light skinned and their kids went to the same New England prep schools as Muffy and Chad. That kind of thing gets in the way, not to mention we wouldn’t want a hiccup in supplies to GM/Ford or payments to Citicorp... Bush, et al think that American 'Soft Power' will work. Yeah right. Just like Euroweenie Soft Power will work in with Saddam, or in Iran, right? I guess the Mexican Joe Shmoe will just have to eat it. Or come to the US and fight in the dirt for an American Joes job mowing the lawn of the elites who have more in-common with their Mexican counterparts.

15 posted on 09/29/2007 8:01:23 AM PDT by Leisler (Just be glad you're not getting all the Government you pay for.)
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Comment #16 Removed by Moderator

To: ketsu
Illegals suck 10.5 billion from America each year and send it to Mexico.

It's worse than that. Although the following source lists two different figures for remittances sent to Mexico last year, it's still way more than $10 billion.

Migration News
Vol. 14 No. 3, July 2007


17 posted on 09/29/2007 8:14:05 AM PDT by DumpsterDiver
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To: conservatism_IS_compassion

That $418 K dollars of intangible wealth is a direct result of the Constitutional government we have inherited from the founders of this nation, and of the moral foundations they laid.


18 posted on 09/29/2007 8:17:46 AM PDT by gitmo (From now on, ending a sentence with a preposition is something up with which I will not put.)
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To: Sidebar Moderator

Response to your #12:
Sorry. I realize then that you will have to pull my posting, #16.

So let this be the substitute for it:

http://www.reason.com/news/show/120764.html
http://conservativehome.blogs.com/columnists/2007/09/peter-franklin-.html

Yes, it’s easier to produce wealth if most of your effort does not have to be diverted to fending off thieves, envious neighbors, and other threats to your life and livelihood. A brilliant flash of the obvious.

More discussion of this at
http://www.poorandstupid.com/chronicle.asp
and
http://www.entrewave.com/freebooks/docs/a_pdfs/gnus.pdf
in chapter 8, entitled “Magic, Envy, and Foreign Aid”, beginning at page 273 (p 351 in the PDF paging).


19 posted on 09/29/2007 8:19:10 AM PDT by Blue_Ridge_Mtn_Geek
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To: DumpsterDiver
It's worse than that. Although the following source lists two different figures for remittances sent to Mexico last year, it's still way more than $10 billion.
Doing the jobs that Americans won't do and getting rid of the money Americans won't spend.
20 posted on 09/29/2007 8:19:15 AM PDT by ketsu
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