John Stossel
  • January 14, 2010 02:03 PM UTC by John Stossel

    A Tale of Two Quakes

    Haiti EarthquakeToday we talk about "disaster relief" in Haiti. But we should also talk about what could have prevented most of the deaths.

    George Mason University Economist Don Boudreaux again opens my brain to what should have been obvious:

    (T)he Haitian earthquake killed tens of thousands of people. But the quake that hit California's Bay Area in 1989 was also of magnitude 7.0. It killed only 63 people. This difference is due chiefly to Americans' greater wealth. With one of the freest economies in the world, Americans build stronger homes and buildings, and have better health-care and better search and rescue equipment. In contrast, burdened by one of the world's least-free economies, Haitians cannot afford to build sturdy structures. Nor can they afford the health-care and emergency equipment that we take for granted here in the U.S.

    These stark facts should be a lesson for those who insist that human habitats are made more dangerous, and human lives put in greater peril, by freedom of commerce and industry.

    Boudreaux adds that per-capita annual income in Haiti is $1,300.  Per-capita annual income in the Dominican Republic is $8,200.  Had the earthquake struck Santo Domingo rather than Port-au-Prince, the death toll would almost surely have been lower.

    Economic freedom saves lives. The ultimate tragedy in Haiti was not the earthquake. It was Haiti’s lack of economic freedom. That tragedy plays out every day in most of the third world.

Jonathan Halsey

Obama pledges $100,000,000 for Haiti but 300 times more than that to prosecute our wars next year! Madness.

January 14, 2010 at 3:52 pm

Nan in Can

Amen to! Tragedy is graver where freedom and prosperity have been hampered by corrupt govts. Haitians have proven to be hard workers who succeed well whenever they immigrate to countries with freer economies so the problem originates with their govt's corrupt and oppressive hand. To quote the Bible, "It is for freedom that you have been set free..." Haiti hails from a successful slave rebellion. But a greedy and corrupt govt. merely enslaved them again, but to govt. and thereby to poverty.

January 14, 2010 at 3:49 pm

Fox_is_Fraud

Could you be more ignorant??? The geological analogy is specious, to say the least. Just imagine, for example, a major hurricane, say Katrina, hitting New Orleans, without modern satellite technology having given some kind of warning and hence a great number of people having evacuated in advance. You're doing a heck of a job Stossel.

January 14, 2010 at 3:47 pm

Tom in Maine

yes - economic freedom does save lives. America is a great example of what can happen when economic freedom thrives. What the world needs is more of that. Check out this utube link with MFriedman and PDonohue - http://www.youtube.com/watch?v=RWsx1X8PV_A we should not down the US when we see other countries poverty, we should be helping them become more like us, meaning economically free. Look at India/Asia - that is what is working there.

January 14, 2010 at 3:46 pm

Josh

titus pullo .. you are an idiot. that was a stupid comment . socialist or not america has money. look at the the rebar in the jacked up buildings... the structural integrity of those buildings was a disaster waiting to happen. america has spent billions on earthquake research and how to build better and safer buildings . sorry titus but based on that last comment your a moron

January 14, 2010 at 3:45 pm

LAD

To be fair, this is one area where government regulation has made a positive difference. California's building codes are more stringent than elsewhere because of the earthquake risk. Since most occupants of buildings are unable to efficiently test the structural integrity of the buildings they occupy, this is an area of regulation that is necessary and helpful. It's rare, but it does happen sometimes.

January 14, 2010 at 3:44 pm

Kyle

Very well said Mr. Stossel. A great observation.

January 14, 2010 at 3:43 pm

CGN

Stossel is an idoit. Not only are the geologic facts different here (Haiti quake was much closer to the surface the epicenter much closer to the city) but the so called free market in SF has strict building codes that must be adhered to. A combination of luck and "oppresssve government" made the SF less deadly.

January 14, 2010 at 3:42 pm

Guest

Let's face it, the Haitians were more interested in voodoo and AIDS than building a society along Western industrial lines. That didn't help.

January 14, 2010 at 3:40 pm

Wendy

Ditto John!

January 14, 2010 at 3:38 pm

Jim M.

John Stossel.....the chief reason there was such a small loss of life in San Francisco was the very thing that you so abhore......government. Government which etablished and enforced building codes that the cost of which the free market would have never expended and first responders equipped and trained by ....yes government. One other thought John.....I know that you have to simplify things for the intellectual simpletons you pander to, but at least try not to insult basic intelligence.

January 14, 2010 at 3:36 pm

Thorium

Thank you John for making the point. It made me recall an article in Reason Magazine of a few years ago which discussed why some countries are poor. I dug around a moment ago on the Reason web site and found it: http://reason.com/archives/2006/03/01/why-poor-countries-are-poor.

January 14, 2010 at 3:35 pm

Titus Pullo

San Francisco IS a socialist area, John.

January 14, 2010 at 3:19 pm

jpd58

Also, experience is a great teacher. The devastating earthquakes of the past in California have taught us to be smarter in contructing our buildings. Hopefully, Haiti can be rebuilt again, also stronger/smarter.

January 14, 2010 at 3:18 pm

Rick

What happened is a terrible tragedy, but I don't see socialist countries like Cuba and Venezuela coming to help these folks out. Socialism is suppose to make everyone equal while freedom and capitalism allows everyone to prosper; but not equally. Freedom allows the US to be prosperous and the American people are the most generous in the world. I hope we stay that way. The rest of the world depends on it

January 14, 2010 at 3:04 pm

Thomas J. Navin

Amen! The Federal Government tends to eff-up everything they do.

January 14, 2010 at 2:45 pm

Jim

USA has given Haiti billions in aid in the last five years. I worry that the aid ultimately hurts their small economy by decimating markets and further entrenching and corrupting their political system because it is injected from the top rather than at the local level where commerce starts. If economists understand how markets work, why do we give foreign aid to the government? It can not work that way. Mr. Boudreaux is a joy to read.

January 14, 2010 at 2:23 pm

About this Web Site

  • John Stossel joined FOX Business and FOX News in October 2009. His show, Stossel, airs on the Fox Business Network on Thursdays at 9 PM and midnight ET. It re-runs Fridays at 10 p.m., Saturdays at 9 p.m. and 12 midnight, and Sundays at 10 p.m. (all times eastern).

    He is the New York Times best-selling author of Give Me A Break and Myths, Lies and Downright Stupidity. His "Give Me a Break" commentaries take a skeptical look at a wide array of issues, such as education, the economy, parenting, and more.

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