CNN’s Fareed Zakaria to Boxing Champ Manny Pacquiao: “You know, there are reports, your Forbes magazine, other places say you make tens maybe more millions of dollars, $40 million one year. Philippines is a very poor country. Do you think that there is some, there is something wrong with somebody, with somebody in the Philippines making that much money when people are starving in your country?”
Mr. Zakaria (as is true for many folks in the mainstream media) has no grasp of basic economics. As explained previously (“The Economy Is Not A Pizza Pie” (Part 1)“), a wealthy person having money does not stop a poor person from having money. In fact, the opposite is usually true. Money flows, and if Mr. Pacquiao spends or invests his income in the Philippines, everyone there will benefit, particularly the poor.
Why do major media outlets continue to spout economic nonsense? We will examine that question in a future post.