On this capitalism thang

The MDGs may have helped marginally, by creating a yardstick for measuring progress, and by focusing minds on the evil of poverty. Most of the credit, however, must go to capitalism and free trade, for they enable economies to grow—and it was growth, principally, that has eased destitution.

Poverty rates started to collapse towards the end of the 20th century largely because developing-country growth accelerated, from an average annual rate of 4.3% in 1960-2000 to 6% in 2000-10. Around two-thirds of poverty reduction within a country comes from growth. Greater equality also helps, contributing the other third. A 1% increase in incomes in the most unequal countries produces a mere 0.6% reduction in poverty; in the most equal countries, it yields a 4.3% cut.

China (which has never shown any interest in MDGs) is responsible for three-quarters of the achievement. Its economy has been growing so fast that, even though inequality is rising fast, extreme poverty is disappearing. China pulled 680m people out of misery in 1981-2010, and reduced its extreme-poverty rate from 84% in 1980 to 10% now.

Ditch the Maoist stupidity, allow inequality to run riot and a very raw and red in tooth and claw capitalism plus trade creates the wealth to pretty much eliminate absolute poverty.

There\’s a lesson there somewhere for those places which are not managing to eliminate abolsute poverty…….

2 thoughts on “On this capitalism thang”

  1. There is also a message for those who would reduce the developed world to a state of absolute poverty…..

  2. But what if the man next door made $250,000 and you only made $100,000 a year? Wouldt you want to reduce the entire fucking world to a level of income below you so your kids can have laptops and theirs cant? How else could you tolerate life?

Leave a Reply

Your email address will not be published. Required fields are marked *