Back in 2010, I shared a remarkable chart showing how quickly economic output doubles in a fast-growth economy, but it also showed how long it takes for GDP to expand if an economy only grows 1 percent or 2 percent per year.
My main message was that nations should follow good policy because:
…even modest differences in economic growth can have a big impact on relative prosperity with a couple of decades.
But what’s really astounding – in a bad way – is that there used to be no growth. I recently posted a remarkable video from Learn Liberty that showed how the world was mired in poverty for century after century until growth exploded around 1800.
Now Don Boudreaux has a similar must-watch video for Marginal Revolution University.
The moral of the story is that poverty is, or at least was, the natural state of humanity.
But then something remarkable happened. The power of government was constrained and the vitality of markets was unleashed. The rest, as they say, is history.
And if you want to see a remarkable case study, the Fund for American Studies has its own great video showing how one nation went from misery to prosperity in just 100 or so years.
And to augment that video, here’s a chart from Wikipedia.
Just something to have in the back of your mind when some statist naively tells you the economy is a fixed pie and that successful entrepreneurs only become rich by making other people poor.
That’s simply not true.
Actually, allow me to revise my remarks. In the left’s fantasy world of taxes, bailouts, handouts, and cronyism, there is no growth and some people are able to use government coercion to become rich by ripping off others.
But in all likelihood, this satirical image shows the true impact of statism and redistribution.
[…] those interested in this remarkable story of human enrichment, Don Boudreaux and Deirdre McCloskey have must-watch videos on how capitalism enabled (some) nations to escape […]
Reblogged this on Utopia, you are standing in it!.
[…] those interested in this remarkable story of human enrichment, Don Boudreaux and Deirdre McCloskey have must-watch videos on how capitalism enabled (some) nations to escape […]
[…] I wrote last year that today’s Americans are much richer than their parents and grandparents (and the gap becomes even more enormous when comparing with earlier generations). […]
[…] that’s just a partial explanation. As Professors Donald Boudreaux and Deirdre McCloskey explained in short videos, the adoption of capitalism in a few nations […]
[…] attacks against capitalism, but none of the criticismschange the fact that free enterpriseis the only system to ever deliver mass prosperity to ordinary […]
[…] attacks against capitalism, but none of the criticisms change the fact that free enterprise is the only system to ever deliver mass prosperity to ordinary […]
[…] is an issue I’ve repeatedly addressed, showing how poverty was the natural state of humanity until capitalism appeared a few hundred […]
[…] of a conference organized by the Face of Liberty International in Nigeria, I reviewed real–worldevidence to explain the recipe needed for poor nations to become rich nations. With an emphasis […]
[…] of a conference organized by the Face of Liberty International in Nigeria, I reviewed real–world evidence to explain the recipe needed for poor nations to become rich nations. With an emphasis on […]
[…] know what works. Don Boudreaux, Deirdre McCloskey, and Dan Hannan have all explained how Western Europe and North America became […]
[…] is an issue I’ve repeatedly addressed, showing how poverty was the natural state of humanity until capitalism appeared a few hundred […]
[…] emerge a couple of hundred years. The parts of the world that adopted free enterprise became incredibly rich. And there even have been meaningful improvements in living standardsin the parts of […]
[…] to emerge a couple of hundred years. The parts of the world that adopted free enterprise became incredibly rich. And there even have been meaningful improvements in living standards in the parts of the […]
[…] Don Boudreaux and Deirdre McCloskey have must-watch videos on how capitalism enabled (some) nations to escape […]
[…] Don Boudreaux and Deirdre McCloskey have must-watch videos on how capitalism enabled (some) nations to escape […]
[…] is why I shared data earlier this year showing how per-capita economic output jumped dramatically once capitalism was allowed starting a couple of hundred years […]
[…] is an issue I’ve repeatedly addressed, showing how poverty was the natural state of humanity until capitalism appeared a few hundred […]
[…] is an issue I’ve repeatedly addressed, showing how poverty was the natural state of humanity until capitalism appeared a few hundred […]
[…] is an issue I’ve repeatedly addressed, showing how poverty was the natural state of humanity until capitalism appeared a few hundred […]
[…] shared several videos (here, here, here, and here) that use rigorous data to show that grinding poverty and severe material […]
[…] shared several videos (here, here, here, and here) that use rigorous data to show that grinding poverty and severe material […]
[…] is an issue I’ve repeatedly addressed, showing how poverty was the natural state of humanity until capitalism appeared a few hundred […]
[…] Don Boudreaux, Deirdre McCloskey, and Dan Hannan have all explained how capitalism enabled mass prosperity after endless stagnation and poverty. […]
[…] Don Boudreaux, Deirdre McCloskey, and Dan Hannan have all explained how capitalism enabled mass prosperity after endless stagnation and poverty. […]
[…] is an issue I’ve repeatedly addressed, showing how poverty was the natural state of humanity until capitalism […]
[…] is why I shared data earlier this year showing how per-capita economic output jumped dramatically once capitalism was allowed starting a couple of hundred years […]
[…] is an issue I’ve repeatedly addressed, showing how poverty was the natural state of humanity until capitalism appeared a few hundred […]
[…] is an issue I’ve repeatedly addressed, showing how poverty was the natural state of humanity until capitalism appeared a few hundred […]
[…] is why I shared data earlier this year showing how per-capita economic output jumped dramatically once capitalism was allowed starting a couple of hundred years […]
[…] is why I shared data earlier this year showing how per-capita economic output jumped dramatically once capitalism was allowed starting a couple of hundred years […]
[…] is why I shared data earlier this year showing how per-capita economic output jumped dramatically once capitalism was allowed starting a couple of hundred years […]
[…] development of free enterprise and economic liberty led to dramatic increases in living […]
[…] development of free enterprise and economic liberty led to dramatic increases in living […]
[…] poverty has been the norm throughout history. As documented by Professors Deirdre McCloskey and Don Boudreaux, it was only the development of capitalism (starting a few hundred years ago in Europe) that […]
[…] poverty has been the norm throughout history. As documented by Professors Deirdre McCloskey and Don Boudreaux, it was only the development of capitalism (starting a few hundred years ago in Europe) that […]
[…] in 2014, I shared two videos, one narrated by Prof. Don Boudreaux and the other narrated by Prof. Deirdre McCloskey, making the point that grinding poverty and […]
[…] won’t be news to regular readers. I’ve already shared great videos from Deirdre McCloskey and Don Boudreaux that make the same point about the explosion of prosperity in the modern […]
[…] be news to regular readers. I’ve already shared great videos from Deirdre McCloskey and Don Boudreaux that make the same point about the explosion of prosperity in the modern […]
[…] By contrast, we have lots of evidence that modern prosperity is the result of free markets. […]
[…] By contrast, we have lots of evidence that modern prosperity is the result of free markets. […]
[…] By contrast, we have lots of evidence that modern prosperity is the result of free markets. […]
Unfortunately, you failed to explain that the problem with capitalism is that it exposes the fact that we are only equal under the eyes of God and the Law. This is why people are drawn to socialism. Some people have the ability to be brain surgeons while others only have the ability to dig ditches. Since you can’t bring the ditch digger up to the level of the brain surgeon, your only option is to bring the brain surgeon down to the ditch digger. The only way to do that is to take treasure from the brain surgeon and give it to the ditch digger. Sadly, after thousands of years of proof, some people think we are all equal. Obviously, if we were, Africa, South America and all the other third worlds would not be forever poverty stricken backwards countries.
[…] about how capitalism lifted the world from deprivation and oppression (also see videos by Don Boudreaux and Deirdre […]
[…] beginning a few hundred years ago, living standards dramatically improved (these videos by Don Boudreaux and Deirdre McCloskey have lots of […]
[…] unusual – as explained in videos by Don Boudreaux and Deirdre McCloskey – is that parts of the world became rich beginning a couple of hundred […]
[…] the normal state of humanity is grinding poverty and material deprivation. It’s only in the past few hundred years that many of us have escaped that fate – thanks to a system of free enterprise that channeled […]
[…] Videos by Deirdre McCloskey and by Don Boudreaux confirm how the world went from near-universal poverty to mass prosperity (at least in the nations […]
[…] By contrast, we have lots of evidence that modern prosperity is the result of free markets. […]
[…] By contrast, we have lots of evidence that modern prosperity is the result of free markets. […]
[…] Somos mucho más ricos que hace 50 años y hace 100 años. […]
[…] That being said, the relationship tends to be reasonably cordial so long as the pie is growing. […]
[…] in 2014, I shared two videos – one narrated by Deirdre McCloskey and the other narrated by Don Boudreaux – explaining how the world went from near-universal poverty to mass prosperity (at least in […]
[…] you can see, even a minimum-wage worker is much better off today than an average worker 100 years ago (with the exception of movie […]
[…] this position is certainly supported by the historical data. We are much richer than 50 years ago and 100 years […]
[…] It’s not just O.K., it’s great news. […]
[…] I love capitalism because it a moral system that generates unparalleled prosperity, but I always remind people that this doesn’t make me a fan of big companies. Too many large […]
[…] shouldn’t we learn something from the fact that “almost capitalism” created the amazing hockey stick of human progress? Shouldn’t we learn something from the fact that “some […]
[…] seen a chart that looks just like this. It was in a video Deirdre narrated. Don Boudreaux shared a similar chart in one of his […]
[…] seen a chart that looks just like this. It was in a video Deirdre narrated. Don Boudreaux shared a similar chart in one of his […]
[…] a chart that looks just like this. It was in a video Deirdre narrated. And Don Boudreaux shared a similar chart in one of his […]
[…] es lo que permitió al mundo occidental escapar de la pobreza, lo que resultó en el famoso “palo de hockey” de la prosperidad […]
[…] market capitalism revolutionized the western world, creating prosperity where there used to be […]
[…] instance, is what enabled the western world to escape poverty, resulting in the famous “hockey stick” of modern […]
[…] au monde occidental d’échapper à la pauvreté, ce qui a donné naissance à la fameuse « crosse de hockey » de la prospérité […]
[…] for instance, is what enabled the western world to escape poverty, resulting in the famous “hockey stick” of modern […]
[…] they think the economy is a fixed pie, which is laughably false. Just watch these videos by Don Boudreaux and Deirdre McCloskey. The simple lesson is that everyone can become richer at the same time. At […]
[…] then, as explained in short videos by Professors Deirdre McCloskey and Don Boudreaux, the world suddenly became much richer starting a few hundred years […]
[…] the free enterprise system is why we enjoy unimaginable prosperity and why poor people in the United States have higher living standards than the average person in a […]
[…] Before capitalism, as explained in videos by Deirdre McCloskey and Don Boudreaux, human existence was characterized by grinding poverty. But once free markets were unleashed, the […]
[…] market economy, however, is not a zero-sum game. It is possible for all income groups to become richer at the same […]
[…] class. Is she not aware that capitalism is the only successful strategy for reducing poverty? Does she not understand that the entire world was mired in poverty before free markets took […]
[…] class. Is she not aware that capitalism is the only successful strategy for reducing poverty? Does she not understand that the entire world was mired in poverty before free markets took […]
[…] what it’s worth, child labor was ubiquitous in the western world prior to the explosive growth that was unleashed by free markets and limited […]
[…] what it’s worth, child labor was ubiquitous in the western world prior to the explosive growth that was unleashed by free markets and limited […]
[…] video from Marginal Revolution on the rapid growth of living […]
[…] camp since most of my columns involve data and evidence on the superior outcomes associated with markets compared to […]
[…] story of the private sector is that competition generates ever-more output in ways that bring ever-higher living standards to ever-greater numbers of […]
[…] video from Marginal Revolution University narrated by Professor Don […]
[…] video from Marginal Revolution University narrated by Professor Don […]
[…] And we see that in the incredible data that’s been shared by scholars such as Deirdre McCloskey and Don Boudreaux. […]
[…] And we see that in the incredible data that’s been shared by scholars such as Deirdre McCloskey and Don Boudreaux. […]
[…] system generates creative destruction, which sometimes can be painful, but the long-term result is that we are vastly […]
[…] system generates creative destruction, which sometimes can be painful, but the long-term result is that we are vastly […]
[…] story of the private sector is that competition generates ever-more output in ways that bring ever-higher living standards to ever-greater numbers of […]
[…] system generates creative destruction, which sometimes can be painful, but the long-term result is that we are vastly […]
[…] story of the private sector is that competition generates ever-more output in ways that bring ever-higher living standards to ever-greater numbers of […]
[…] story of the private sector is that competition generates ever-more output in ways that bring ever-higher living standards to ever-greater numbers of […]
[…] this system is what has given us the “hockey stick” of human […]
[…] previously shared powerful videos from Deirdre McCloskey and Don Boudreaux that show the world has become much richer over time, and my colleague Marian Tupy has a website, […]
[…] this system is what has given us the “hockey stick” of human […]
[…] our friends on the left apparently believe (or, if they’re familiar with historical data, they pretend to believe) that the economy is a fixed pie. So if someone in the top-1 percent, […]
[…] wealthier. So while I have no idea what will happen in the future, I have considerable faith that market forces will create productive options for […]
[…] for the simple reason that it is a system that is consistent with human freedom while also producing mass prosperity that was unimaginable for much of human […]
[…] for the simple reason that it is a system that is consistent with human freedom while also producing mass prosperity that was unimaginable for much of human […]
[…] for the simple reason that it is a system that is consistent with human freedom while also producing mass prosperity that was unimaginable for much of human […]
[…] for the simple reason that it is a system that is consistent with human freedom while also producing mass prosperity that was unimaginable for much of human […]
[…] for the simple reason that it is a system that is consistent with human freedom while also producing mass prosperity that was unimaginable for much of human […]
[…] economy is not a fixed pie. Income earned by the “rich” is not at the expense of the rest of us (assuming honest markets […]
[…] economy is not a fixed pie. Income earned by the “rich” is not at the expense of the rest of us (assuming honest […]
[…] that issue a few days ago, but the most compelling evidence is in these videos from Learn Liberty, Marginal Revolution, and the Fund for American […]
[…] in the world (and in the United States), which obviously means that the vast majority of people are far better off than their […]
[…] all, how could anyone support big government over markets after watching these videos narrated by Don Boudreaux, Walter Williams, and Deirdre […]
[…] all, how could anyone support big government over markets after watching these videos narrated by Don Boudreaux, Walter Williams, and Deirdre […]
[…] to know why Pope Francis is wrong about capitalism and human well-being, these videos narrated by Don Boudreaux and Deirdre McCloskey will explain how free markets have generated unimaginable prosperity for […]
[…] to know why Pope Francis is wrong about capitalism and human well-being, these videos narrated by Don Boudreaux and Deirdre McCloskey will explain how free markets have generated unimaginable prosperity for […]
[…] to know why Pope Francis is wrong about capitalism and human well-being, these videos narrated by Don Boudreaux and Deirdre McCloskey will explain how free markets have generated unimaginable prosperity for […]
[…] obvious answer is that many of them hold the anti-empirical belief that the economy is a fixed pie and that one person can’t climb the economic ladder […]
[…] the defining mistake for our statist friends? One obvious answer is that many of them hold the anti-empirical belief that the economy is a fixed pie and that one person can’t climb the economic ladder unless […]
[…] obvious answer is that many of them hold the anti-empirical belief that the economy is a fixed pie and that one person can’t climb the economic ladder unless […]
[…] Wow. These people want to “intentionally…change the economic development model” that has produced unimagined prosperity. […]
[…] Wow. These people want to “intentionally…change the economic development model” that has produced unimagined prosperity. […]
[…] Wow. These people want to “intentionally…change the economic development model” that has produced unimagined prosperity. […]
[…] First, if you look at the amazing historical story in this video, you’ll see that prosperity soared in the United States because of economic liberty. And you’ll see the same pattern in certain other parts of the world in this video and this video. […]
[…] First, if you look at the amazing historical story in this video, you’ll see that prosperity soared in the United States because of economic liberty. And you’ll see the same pattern in certain other parts of the world in this video and this video. […]
The left talks about a fixed pie rather than a growth model because their policies seem to end up with that result.
Great article, I am going to play this in one of my Business classes!
Graphs like this should always be in logarithmic form.