The other day, I went to Times Square to ask people what government should do to help poor people. Most everyone agreed on the answer: “more social programs and a higher minimum wage.”

It’s intuitive to think that way. I used to think that, too. When President Johnson declared a “war on poverty,” he said “compassionate government” was the road to prosperity for poor people. That made sense to me. At Princeton, I was taught that government’s central planners had the solution to poverty.