One Thing The Pope Might Get Wrong About Capitalism

Economist Hernando de Soto shows how hard it is for the poor in third world countries to be part of capitalism and start their own businesses. The government gets in their way, big time. Maybe if markets were freer these poor people would be better off.

See Egypt's Economic Apartheid: More than 90% of Egyptians hold their property without legal title. No wonder they can't build wealth and have lost hope from the WSJ back in 2011. Excerpt:

"The key question to be asked is why most Egyptians choose to remain outside the legal economy? The answer is that, as in most developing countries, Egypt's legal institutions fail the majority of the people. Due to burdensome, discriminatory and just plain bad laws, it is impossible for most people to legalize their property and businesses, no matter how well intentioned they might be.

The examples are legion. To open a small bakery, our investigators found, would take more than 500 days. To get legal title to a vacant piece of land would take more than 10 years of dealing with red tape. To do business in Egypt, an aspiring poor entrepreneur would have to deal with 56 government agencies and repetitive government inspections.

All this helps explain who so many ordinary Egyptians have been "smoldering" for decades. Despite hard work and savings, they can do little to improve their lives."