America's Foreign Aid Policy Essay

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It's Time for America's Foreign Aid Policy to Follow Thomas Malthus’ Prescriptions

During the late 1700s, Adam Smith and Thomas Malthus each entered their predictions on the future of the world’s economies into the history books. In his writings in An Inquiry into the Nature and Causes of the Wealth of Nations, Smith theorized that national economies could be continuously improved by means of the division of labor, efficient production of goods, and international trade. In An Essay on the Principle of Population, Thomas Malthus predicted that the sustainable production of food in relation to population was vital to the mere existence of national economies in order to ensure an able labor force. Smith believed that the success or
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The outcome of these attempts to bolster development will then be investigated, and finally the writings of Thomas Malthus will be used to provide insight into developing policy prescriptions.

Adam Smith, U.S. Foreign Aid Advisor

The wealth of a neighboring nation, though dangerous in war and politicks, is certainly advantageous in trade. In a state of hostility it may enable our enemies to maintain fleets and armies superior to our own; but in a state of peace and commerce it must likewise enable them to exchange with us to a greater value, and to afford a better market, either for the immediate produce of our own industry, or for whatever is purchased with that produce. As a rich man is likely to be a better customer to the industrious people in his neighborhood, than a poor, so is likewise a rich nation (Smith, 1776: 494).

Throughout The Wealth of Nations, Adam Smith contends that in order for a nation to increase its own national wealth, it must engage in trade with its neighbors. As explained in the quote above, wealthy neighboring nations are largely preferred over poorer ones in order to maximize the advantages gained through international exchange. The more money an individual nation has, the more capable they will be of purchasing your goods, and in this way increasing your national wealth. With this wealth, you will be
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