Not Detroit.  That’s Gabrone, capital of Botswana

Botswana vs. America

By Rick Kelo

Last week I wrote entitled “What Capitalism Did to Botswana” where we looked at the growth of free-market Botswana against the stagnation of its neighbor: Marxist Zimbabwe.

Today let’s bring it home: Botswana vs. America!!  Specifically let’s compare free trading, nearly laissez-faire Botswana to heavily interventionist Detroit.

• In 1960 Detroit was the #1 richest city in America.  In 1961 it came under 1 party rule by the Democratic party.
• Detroit has stuggled under countless economic interventions: high taxes, union favortism, cronyism / favortism toward its couple biggest businesses, etc.
• Detroit is already in America, the most heavily regulated nation on earth,  but piles mountains of additional legislation & regulation on top of that.

Botswana does precisely the opposite.  It has nearly unregulated laissez-faire capitalism and nearly total free trade.

Results?

INFANT MORTALITY

• Detroit: 120 per 100,000. (Source)
• Botswana: 99 per 100,000 (Source)

PER CAPITA INCOME

• Detroit: $14,861     (Source)
• Botswana: $19,316 (Source)

UNEMPLOYMENT

• Detroit: 18.04%     (Source)
• Botswana: 17.8%   (Source)
• (Note: most recent year I could find was 2012 for Botswana, so both are 2012).

DEBT TO GDP

• Detroit: 90% (Source)
• Botswana: 14.5% (Source)