You may have heard about the $35 computer by now. If not, you can read up on it here. A company in India has created a computer that costs only $35 dollars. It is extremely basic, and only provides a screen with a touch screen keyboard, and an Internet browser. But at that price, it is going to be available to the population of India of over 1 billion people. India, you probably know, is developing its economy very quickly, but it still has an enormous population of poor people, probably about 900 million. This population is educated, but very poor. They can't afford an ordinary computer, but they would know what to do with one if they had one.
This is an example of capitalism free from high government restrictions, regulations, and taxes. In its purest form, capitalism lowers prices and pulls people out of poverty on a massive scale. Not by raising prices and gobbling up profits, but by lowering prices and getting products into the hands of consumers who need them.
You may have also heard about the Tata Nano, a $2000 car built by Tata Motors in India. Its a small little car, but brand new it only costs $2,000. Its perfect for a developing country. Right now India is positioning itself for major economic growth going forward. They have business-friendly government policies, and they are not bogged down by lots of restrictions, regulations, fees, permits and taxes.
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