Equating capitalism with colonialism, Africa’s nationalist leaders rejected it and adopted socialism in the 1960s. Foreign companies were nationalized, a string of state-owned enterprises was established and a plethora of state controls on rent, prices, imports, and foreign exchange were imposed to capture the commanding heights of the economy.
Here you can see an illustration of hyperinflation since 1980 until the end of 2018.
“There are two sides to every issue: one side is right and the other is wrong, but the middle is always evil … In any compromise between food and poison, it is only death that can win. In any compromise between good and evil, it is only evil that can profit.” (Galt’s Speech)
In this series we will publish weekly cutouts from the book by Kristian Niemietz
Imagine a system in which a private company, as a government service provider, offers you the protection of life, liberty, and property. This service includes internal and external security, a legal and regulatory framework and independent dispute resolution. For these services, you pay a contractually fixed fee per year. The state service provider as operator of the community can not unilaterally change this "citizens contract" with you later. As a "contract citizen", you have a legal claim to compliance and a claim for damages in the event of failures.
In the 70’s, Chile was a country devastated by Salvador Allende's interventionist policies. The socialist government had destroyed the economy and destabilized society, leaving the nation in a complete socio-economic ruin which was compounded by the lack of individual freedoms. Given the worrying situation, not surprisingly, the Chilean economy was moribund and other Latin American countries such as Mexico, Venezuela, and Argentina easily surpassed their standard of human development.