""If you sit around and don't do anything, you quickly become poor."
-chrispiminis"
This wasn't meant to imply that third world countries are lazy. It was meant to show that the natural state is poverty and not wealth. The 0 point is absolute poverty, it isn't some random level of wealth, below which is unacceptable suffering, and above which is luxury.
I would get involved in the sustainability argument more, but it's been done futilely before and I've apparently got a lot to respond to already. Put shortly, you do not take into account technological advances in your model of sustainability. People have been predicting the fall of civilization since Malthus, and probably before him, but technological advances have always increased the carrying capacity of the world. The developed world is much more environmentally conscious than it was a century ago.
"Surely, to use this kind of analysis, the zero point would be death from starvation? Extreme povery, but where you just manage to cling painfully to life until you die in early adulthood from the effects of your critically weakened immune system, would be a point or two above the scale..."
Sure. I think I can accept that definition. It's absolutely terrible, but it's not so different from the conditions currently developed countries experienced centuries ago.
"I recall hearing a story on the radio a few years back about an experiment that was, by pretty much all accounts quite successful, in Cambodia, in which the US gave Cambodia the same sort of trade terms as China (maybe even better) when it came to textiles, but with the caveat that Cambodia institute all kinds of labor reforms. It was evidentily quite successful. The Cambodian textile workers enjoyed much better working conditions, and wages, the wider Cambodian economy benefited because these workers had more money to spend, and the textiles, because of their favorable trade terms, were just as inexpensive to consumers in the US as those made in other places."
What exactly were the reforms? I'm not exactly a classic libertarian because I still hold that governmental action is necessary in the management of public goods and regulation is necessary in industries with externalities. I also believe that government action has the potential to do good, but I mostly dismiss it because I believe that very rarely is it so well designed and planned as to be able to compete with the efficiency of the free market. Sounds like a successful policy was enacted, and it certainly does sound like correlation is causation in this instance, but I'd have to know more about the entire situation.
So I agree with you that laissez-faire capitalism can be improved upon by conscious and concerted action, but I remain skeptical that it can be done efficiently at this point. I don't think economic thought has considered enough variables for us to be able to accurately predict the real ramifications of each policy.
"Free market economy is the way the most advanced nations (First it was England, then the US, then Japan, China) screw over the least developed.
The US has had countless and still has plenty protectionist measures regarding their production.
Once that production is secure, they told the whole world that the way to be a developed country was free market economy. "Look, we do it, and we're developed!" Yeah, right. You do it NOW that you're developed, but you didn't develop because of it, or even in spite of it, you developed without it."
No, I'm afraid you can't really call those nations free market economies. While they are generally laxer in terms of business taxes (China?!), their governmental presence shows they are clearly mixed economies. I don't think a single nation employs laissez faire capitalism on the national level. You pinpointed the problem right there with American protectionism. That's exactly it. There's no reason a firm should want to keep a nation or a people down, especially in the face of intense competition. There would just be no way to sustain it in the long run. There does exist reason for one nation to keep another down, but only through us vs. them justification. On the global level, it's inefficient to use such practices, but nationalism makes it possible to justify such action by placing more value on "us" than on "them", which makes it economically viable. A firm unhampered by nationalistic duties in a free market with ample competition is economically driven to develop on a global scale of efficiency.