"To give an example: you observe a poor part of town inhabited by people making their living by washing dishes in restaurants and shining shoes, and a rich part of the same town inhabited by stockbrokers and lawyers. Your task is to explain the differences in income, within the logic of international trade theory, which means that you are not allowed to make reference to the fact that the source of the income gap between the two parts of the city is a direct result of the differences in earnings potential of the professions involved. The toolbox of that theory hardly contains any instruments with which you can observe qualitative differences between economic activities. Barred from saying that differences in earning between shoe-shiners and stockbrokers are a direct result of inherent differences between the two professions economists therefore come up with explanations that tend to be secondary effects of the main cause: the poor do not have enough education (ignoring the fact that you cannot profitably invest in education that improves your income as shoe-shiner or dish-washer), the poor have not saved enough (without seeing that their low income prevents them from saving), the poor have not innovated enough (without noticing that the opportunities for innovation in shoeshining are more limited than in other fields), etc. etc.
As was so obvious to American economists around 1820, a nation - just as a person - still cannot break such vicious circles without changing professions. In the case of a nation, that meant the industrialization project that for a century was referred to as the American System of Manufactures. However, having unlearned the successful strategies of the past, the economics profession at present shows a singular ability to focus on and attack the symptoms of poverty rather than its root causes. Experiments with the loosening of assumptions are usually done by letting go of one at a time, and have so far failed to influence our policies towards the poor.”
Trecho retirado de "How Rich Countries Got Rich and Why Poor Countries Stay Poor" de Erik S. Reinert
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