A good example of how dependency on macro systems is devastating for a people is Haiti. Haiti’s last earthquake caused a human holocaust from which they are still trying to recover. It mobilized the world to come and help.

Little known by many is that about the same time Chile suffered a stronger quake with little negative effects, as compared to Haiti. Why? In great part because of Capitalism and Chile’s effort to provide an efficient rule of law system. Chile understood that to build a strong free market, there must be a strong property rights system and a strong system of law that provides for better construction of buildings. Buildings that abide by sensible regulations that remain minimal but secure capital make for a better system. The legal infrastructure that comes with an efficient Capitalist system safeguarded them from catastrophe.

Some think this is an example of the wonders of government regulation but that is not the case. Before Chile embarked in their Capitalist experiment government regulated all of life there. It is not until they move toward markets that they free the economy while creating a sensible system of law that does well what it must and stays away from where it should.

When the quake came, their buildings stood. In statist Haiti they have chosen the path of aid over development and government leadership over economic freedom and rule of law. And that is what you get, disaster.

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