You are RICH!!!!

One of the reasons that many people in poor countries don't have more assets is because property rights are so badly defined - in many South American countries, it's impossible to get a deed to the land you live on. That means you can't own land, and it doesn't make sense to put money into building a house because you don't own the land the house is on. You can't use your property as collateral for a loan - no HELOCS if you don't have property to have equity in.

hernando desoto has an interesting book on this subject.

MadAnthony said: One of the reasons that many people in poor countries don't have more assets is because property rights are so badly defined - in many South American countries, it's impossible to get a deed to the land you live on. That means you can't own land, and it doesn't make sense to put money into building a house because you don't own the land the house is on. You can't use your property as collateral for a loan - no HELOCS if you don't have property to have equity in.

hernando desoto has an interesting book on this subject.

Every year they do a study on what various countries require to start a business, a compendium of barriers to free enterprise. And every year it shows that the more regulations and bureaucratic roadblocks there are, the poorer the country tends to be. Small business, free enterprise, property rights, rule of reasonable laws, those are some of the critical factors that increase prosperity, and with that human rights.

It's really kind of oxymoronic, you would think that a poor country would have less regulation, but that's not the case. Tinpot politicians soak their poor burdening them with fees, taxes, and red tape, and the poor stay that way. See Mexico.