Bill Gates is exceptionally good at some things, but when it comes to understanding economics, he is about as naive as the typical college freshman, head filled with a few false ideas and lacking in any in-depth comprehension.
His recent proclamation regarding the supposed failing of capitalism to provide for the needs of the poor is just the sort of thing you’d get from a student who has grown up in family that subscribes to The Nation and goes to the Daily Kos first thing every morning. Predictably, it has drawn a lot of counter-fire from people who know what they’re talking about.
Case in point: today’s Wall Street Journal features this piece by Professor William Easterly, a critic of the foreign aid establishment. Gates said some uncomplimentary things about Easterly’s book and Easterly replies by demonstrating that Gates simply doesn’t know what he’s talking about.
Someone should have suggested to Gates that he read quite a bit more about development economics before making a fool of himself. As Easterly writes, “The parts of the world that are still poor are suffering from too little capitalism.” There is an abundant literature making that point, written by economists who have first-hand knowledge of conditions in Africa, South America and other impoverished places.
Gates has a lot of homework to do before he replies and when he does, he should offer Easterly an apology.
