Can the Poor Get Ahead in Underdeveloped Countries and Beyond?

The struggle for prosperity is omnipresent, regardless of geographical or socio-economic boundaries. This piece explores the circumstances under which individuals from impoverished third-world countries can get ahead. Specifically, we will discuss the potential for such individuals to transition from low-wage work to better opportunities, both within and outside their home countries.

Escaping Poverty Through Migration

Individuals from third-world countries often work in factories and plantations, earning barely enough to sustain their families. The opportunity to improve their circumstances emerges when they illegally migrate to more developed nations like the United States, where they may encounter better job opportunities and social security benefits. However, this transition is not without its challenges, and positive outcomes depend solely on the support and policies of the larger society and government.

Support and Policies for Economic Growth

Only when the broader society and the government extend better job opportunities and improved social security can such individuals thrive. Countries with repressive governments or religious systems that prevent citizens from sharing in their nation's wealth face significant obstacles. Conversely, some small, resource-poor countries have provided a decent standard of living to their citizens. Unfortunately, overpopulation in countries with widespread poverty further exacerbates the challenges faced by the poor.

Economic Growth and the Role of Governments

Even in the most developed countries, such as the United States, poverty and homelessness persist due to limited opportunities. Despite a high population of people with multiple jobs, these individuals often struggle to survive, let alone thrive. This highlights the disparity between the need for survival and the pursuit of prosperity. Lynn Noil points out that creating customers for the products they produce requires a level of enlightened self-interest that is in short supply today.

The Psychological Aspect of Economic Behavior

A famous psychological experiment in which participants chose between higher personal gain with a smaller group or a lower personal gain with a larger group illustrates the challenge of broad economic benefits. In the experiment, the majority chose the option with higher personal gain, albeit at the expense of broader societal benefits. This behavior is not unique to third-world countries; even in developed nations, individuals often prioritize personal gain over economic growth.

Historically, the success of companies like Henry Ford in promoting economic growth through sharing wealth offers a lesson. By providing better wages, Ford created a larger market for his products, benefiting both himself and society. Similarly, immigration debates often revolve around the misperception that there are a finite number of jobs. However, economic growth requires a larger workforce and more jobs, not fewer. With economies of scale, some jobs may be eliminated, but new opportunities emerge due to further specialization and the creation of luxury jobs.

Conclusion and Final Thoughts

The struggle for prosperity is a complex issue that goes beyond geographical boundaries. While individuals from impoverished regions must navigate various challenges to improve their circumstances, the broader society plays a crucial role. Governments and larger communities must work together to create systemic changes that promote economic growth and ensure broad-based prosperity. By embracing shared prosperity, we can create a more equitable and sustainable future.