Making micro loans to people in third world countries

[Diego Mamani]

[quote=flu]… I don’t understand why OUR nation (Congress) authorizes “relief” packages to foreign countries…[/quote]

I see, you were talking about Congress-mandated aid. That is off-off topic in this thread. In any case, any foreign aid approved by Congress is usually peanuts. Let me explain. The US protects its farmers with huge trade tariffs imposed against certain imported products, like corn and avocados, etc. The result is that we, U.S. consumers, pay $1.50 for one avocado that would cost $0.25 or less in a free-trade world.

This amounts to you and me being forced to give charity to U.S. farmers. That is bad enough. But what is really atrocious is the fact that the current scheme amounts to stealing from farmers in poor countries. By imposing tariffs, we artificially reduce the income of third countries by billions. In exchange, the US Congress sends a few million dollars as “foreign aid”.

And you still think we are being too generous? I don’t think so. I hope this Thanksgiving our farmers were very grateful for their continued windfall. Unfortunately, they take it for granted and believe they are entitled to all those subsidies, price support schemes, and trade tariffs.

(/libertarian rant OFF)

[beanmaestro]

[quote=flu]I am going to ask a very crass question. Why do folks feel compelled to help people in other countries when there are several kids/children starving in this country? Just curious.
[/quote]

I’m happy to help people who need microcredit locally and in the US. Two reasons to help people overseas, though: 1. Third-world entrepeneurs need (a lot) less money to get started, and 2. Their odds of getting reasonable local financing is much lower.

The key feature of microcredit is that you’re helping ambitious people who want to help themselves by creating a self-sufficient business. Donations (in addition to having problems with corruption) tend to destroy local businesses by giving away what the local businessmen are trying to sell. Growing local business reduces the need for donations, and returns your donation when it’s done.

[beanmaestro]

[quote=flu]I am going to ask a very crass question. Why do folks feel compelled to help people in other countries when there are several kids/children starving in this country? Just curious.
[/quote]

I’m happy to help people who need microcredit locally and in the US. Two reasons to help people overseas, though: 1. Third-world entrepeneurs need (a lot) less money to get started, and 2. Their odds of getting reasonable local financing is much lower.

The key feature of microcredit is that you’re helping ambitious people who want to help themselves by creating a self-sufficient business. Donations (in addition to having problems with corruption) tend to destroy local businesses by giving away what the local businessmen are trying to sell. Growing local business reduces the need for donations, and returns your donation when it’s done.

[beanmaestro]

[quote=flu]I am going to ask a very crass question. Why do folks feel compelled to help people in other countries when there are several kids/children starving in this country? Just curious.
[/quote]

I’m happy to help people who need microcredit locally and in the US. Two reasons to help people overseas, though: 1. Third-world entrepeneurs need (a lot) less money to get started, and 2. Their odds of getting reasonable local financing is much lower.

The key feature of microcredit is that you’re helping ambitious people who want to help themselves by creating a self-sufficient business. Donations (in addition to having problems with corruption) tend to destroy local businesses by giving away what the local businessmen are trying to sell. Growing local business reduces the need for donations, and returns your donation when it’s done.

[beanmaestro]

[quote=flu]I am going to ask a very crass question. Why do folks feel compelled to help people in other countries when there are several kids/children starving in this country? Just curious.
[/quote]

I’m happy to help people who need microcredit locally and in the US. Two reasons to help people overseas, though: 1. Third-world entrepeneurs need (a lot) less money to get started, and 2. Their odds of getting reasonable local financing is much lower.

The key feature of microcredit is that you’re helping ambitious people who want to help themselves by creating a self-sufficient business. Donations (in addition to having problems with corruption) tend to destroy local businesses by giving away what the local businessmen are trying to sell. Growing local business reduces the need for donations, and returns your donation when it’s done.

[beanmaestro]

[quote=flu]I am going to ask a very crass question. Why do folks feel compelled to help people in other countries when there are several kids/children starving in this country? Just curious.
[/quote]

I’m happy to help people who need microcredit locally and in the US. Two reasons to help people overseas, though: 1. Third-world entrepeneurs need (a lot) less money to get started, and 2. Their odds of getting reasonable local financing is much lower.

The key feature of microcredit is that you’re helping ambitious people who want to help themselves by creating a self-sufficient business. Donations (in addition to having problems with corruption) tend to destroy local businesses by giving away what the local businessmen are trying to sell. Growing local business reduces the need for donations, and returns your donation when it’s done.

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