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November 12 - December 8, 2020
In two hundred years the rate of extreme poverty in the world has tanked from 90 percent to 10, with almost half that decline occurring in the last thirty-five years.
market economies can generate wealth prodigiously while totalitarian planned economies impose scarcity, stagnation, and often famine.
“Some argue that globalization is a neoliberal conspiracy designed to enrich a very few at the expense of many. If so, that conspiracy was a disastrous failure—or at least, it helped more than a billion people as an unintended consequence.
In the richest country two centuries ago (the Netherlands), life expectancy was just forty, and in no country was it above forty-five. Today, life expectancy in the poorest country in the world (the Central African Republic) is fifty-four, and in no country is it below forty-five.
Those who condemn modern capitalist societies for callousness toward the poor are probably unaware of how little the pre-capitalist societies of the past spent on poor relief.
Now, it’s true that the world’s poor have gotten richer in part at the expense of the American lower middle class, and if I were an American politician I would not publicly say that the tradeoff was worth it. But as citizens of the world considering humanity as a whole, we have to say that the tradeoff is worth it. But even in the lower and lower middle classes of rich countries, moderate income gains are not the same as a decline in living standards.
The middle class is being hollowed out in part because so many Americans are becoming affluent. Inequality undoubtedly increased—the rich got richer faster than the poor and middle class got richer—but everyone (on average) got richer.
the Optimism Gap (the “I’m OK, They’re Not” bias): a majority of Americans believe that the standard of living of the middle class has declined in recent years but that their own standard of living has improved.
when the benefits from the hidden welfare state are added up, and the cost of living is estimated in a way that takes into account the improving quality and falling price of consumer goods, the poverty rate has fallen in the past fifty years by more than three-quarters, and in 2013 stood at 4.8 percent.53
When poverty is defined in terms of what people consume rather than what they earn, we find that the American poverty rate has declined by ninety percent since 1960, from 30 percent of the population to just 3 percent.