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On Economic Liberalism

My own personal research on income inequality and growth shows and inverse relationship between inequality, human capital investment, and growth, but that human capital investment, for developing , countries, leads to both lowered income inequality and higher growth. Along these lines, Amartya Sen, a Nobel Prize recipient in economics, writing in Development as Freedom, notes that one of the
flaws in India’s development is a lopsided focus on free markets, and while not a proponent of Chinese-style government, he notes that China has raised the base of human ability, and he forecasts some positives from this aim. He also writes about democracy, and that there are no famines in democracies. Together, this points to the value of free markets, but in those countries where there are large investments in raising the quality and ability of human capability. This seems equally true when one considers democracy and voting.

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