Development

What is lacking to the underdeveloped nations is not knowledge, but capital.

The Ultimate Foundation of Economic Science, p. 127

The prerequisite for more economic equality in the world is industrialization. And this is possible only through increased capital investment, increased capital accumulation.

Economic Policy, p. 86

The poverty of the backward nations is due to the fact that their policies of expropriation, discriminatory taxation and foreign exchange control prevent the investment of foreign capital while their domestic policies preclude the accumulation of indigenous capital.

The Anti-Capitalistic Mentality, p. 83

What is called the American way of life is the result of the fact that the United States has put fewer obstacles in the way of saving and capital accumulation than in other nations. The economic backwardness of such countries as India consists precisely in the fact that their policies hinder both the accumulation of domestic capital and the investment of foreign capital. As the capital required is lacking, the Indian enterprises are prevented from employing sufficient quantities of modern equipment, are therefore producing much less per man-hour and can only afford to pay wage rates which, compared with American wage rates, appear as shockingly low.

Planning for Freedom, p. 152

It is not true that the economic backwardness of foreign countries is to be imputed to technological ignorance on the part of their peoples.

Planning for Freedom, p. 196

It is not a lack of the “know how” that prevents foreign countries from fully adopting American methods of manufacturing, but the insufficiency of capital available.

Planning for Freedom, p. 197

Capitalists have the tendency to move towards those countries in which there is plenty of labor available and in which labor is reasonable. And by the fact that they bring capital into these countries, they bring about a trend toward higher wage rates.

Economic Policy, p. 89