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Abstract It is hard to overestimate the damage socialist fallacies have done to the poor nations of the world. Import substitution and big government tax and spending policies have proved ruinous to these countries-yet these were the very policies the “experts” promised the poor would lead them out of their poverty. “The LDCs are caught in the vicious circle of poverty, 11 wrote the young Walter Heller in 1964. “To break out of this circle, apart from foreign aid, calls for vigorous taxation and government development programs; on this point expert opinion is nearing a consensus. “
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