Saturday, March 03, 2007

Bono solving poverty.

Did anyone see Bono last night? He was preaching to an appreciative audience about the end of extreme poverty. He obviously has read Jeffrey Sachs books, in fact he and Sachs are close friends. I have not seen the incentives that the Sachs-Bono plan promotes. If economics is about "people respond to incentives, the rest is commentary", as most economists agree with the quote by Steven Landsburg; where is the Bono incentive? The truth is the Sachs-Bono plan is about shifting wealth transfers. No incentive. No real result.

Tom

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