In prior years, I’ve shared some videos with powerful messages with a common message. Grinding poverty used to be the normal human condition, but then rule of law and limited government enabled a dramatic increase in prosperity.
- A video from Marginal Revolution on the rapid growth of living standards
- A video from Learn Liberty with a similar lesson of global growth.
- A video from The Fund for American Studies specifically about U.S. growth.
All these videos are worth watching. They show that misery used to be pervasive but then we became rich starting a couple of hundred years ago.
But there’s one shortcoming in these videos. They basically tell a story of how the western world became rich. In other words, they describe how North American and Western Europe went from agricultural poverty to middle class prosperity.
What about the rest of the world?
Well, there’s a good story to tell there as well, albeit it’s happened more recently. Back in 2014, I shared some data from Economic Freedom of the world showing how there was a substantial increase in global economic liberty starting about 1980.
Yes, there were improvements in western nations during that period (thanks to Reagan, Thatcher, etc), but there were also improvements in economic freedom elsewhere (collapse of the Soviet Empire, reforms in what used to be known as the Third World, etc).
In this video from Prager University, Arthur Brooks of the American Enterprise Institute explains that this shift to free enterprise is what produced greater prosperity all across the world.
By the way, folks on the left (see this Salon article) don’t like the fact that the world shifted in the direction of economic liberty.
They grouse that the developing world was subjected to a “Washington consensus” that imposed a “neoliberal” agenda (with neoliberal meaning “classical liberal“).
But here’s a visual showing how a shift to capitalism was great news for the less fortunate. The number of people in extreme poverty has dropped dramatically since the early 1990s.
I wish the data went back to 1980, but even these partial numbers are a tremendous confirmation of the hypothesis that free markets are the best way of helping the poor.
[…] of Government, which is simply another way of expressing my oft-made point that we should try to improve life for the poor rather than worsen life for the […]
[…] of Government, which is simply another way of expressing my oft-made point that we should try to improve life for the poor rather than worsen life for the […]
[…] of Government, which is simply another way of expressing my oft-made point that we should try to improve life for the poor rather than worsen life for the […]
[…] of Government, which is simply another way of expressing my oft-made point that we should try to improve life for the poor rather than worsen life for the […]
[…] of Government, which is simply another way of expressing my oft-made point that we should try to improve life for the poor rather than worsen life for the […]
[…] in 2017, I shared this video explaining why capitalism is unquestionably the best way to help poor […]
[…] we have centuries of evidence demonstrating that only capitalism produces mass […]
[…] in 2017, I shared this video explaining why capitalism is unquestionably the best way to help poor […]
[…] In any event, let’s hope that economic liberty doesn’t shrink in the future. Assuming, of course, we care about national prosperity and poverty reduction. […]
[…] there’s lots of research on capitalism and upward mobility for the less fortunate. Nonetheless, the Pope wants more […]
[…] the Washington Consensus led to better results. Simply stated, capitalism produces more growth and less poverty. Too bad the IMF and other international bureaucracies have forgotten this […]
[…] the “Washington Consensus” refers to the 1980s-era acceptance of free markets as the ideal route for economic […]
[…] That being said, 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 capitalism” is capable of dramatically reducing global poverty? […]
[…] September, I shared some very encouraging data showing how extreme poverty dramatically has declined in the developing […]
[…] September, I shared some very encouraging data showing how extreme poverty dramatically has declined in the developing […]
[…] September, I shared some very encouraging data showing how extreme poverty dramatically has declined in the developing […]
[…] September, I shared some very encouraging data showing how extreme poverty dramatically has declined in the developing […]
[…] September, I shared some very encouraging datashowing how extreme poverty dramatically has declined in the developing […]
I don’t see that this proves what it purports to prove. Correlating poverty with welfare spending mathematically (and with other possible causes and cures) would be better.
The greatest lesson I do learn from this graphic is that Africa is more resistant to the reduction of poverty than other regions. I’m inclined to believe this is because most African nations have cultures in which theft, especially from work places, is not only accepted but demanded by most people. To me, this is a strong argument in favor of colonialism, if and when we can afford to do it again. I’m not saying that some races are superior — I’m saying some belief systems are, and it is wrong to allow those that keep people poor to continue to exist.
[…] September, I shared some very encouraging data showing how extreme poverty dramatically has declined in the developing […]
[…] bottom line is that the ECB study reconfirms that free enterprise is the answer if the goal is reducing poverty and increasing […]
[…] I wonder if that’s supposed to a be a term of derision. When I’m called a neoliberal in other […]
[…] of limited government think it’s not a big issue and instead focus on the policies that are most likely to generate growth. Simply stated, they tend not to care if some people get […]
[…] regurgitating some nonsense she heard in a sociology 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 […]
[…] regurgitating some nonsense she heard in a sociology 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 […]
[…] richer, but the other way around is fine. So long as all groups are enjoying more prosperity and poverty is declining, that’s a good […]
[…] Reprinted from International Liberty. […]
[…] Reprinted from International Liberty. […]
Grand slam!!!! You hit it out of the park!
Hartford Campbell. 770-633-3429 BA Speech Communications -UGA JD WOODROW WILSON LAW SCHOOL
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[…] Free Enterprise: The World’s only Successful Strategy for Poverty Reduction […]
Yes, Dan- similar to the writings of Hayek- people are better off making their own decisions. And that includes lazy people who just want something for nothing. Don’t get me wrong- I have also been lazy- wanting to get the most for doing the least. Until I realized that it’s harder sitting around than it is working. Work becomes its own reward. It gives you something to do and keep you out of trouble. I know many who work harder at doing nothing than if they actually worked a job. They seem to think they are getting away with something, or “sticking it to the man” somehow.
Let’s all pray that the world hears your wise words, and we open up to more freedom. Ultimately. Government only shares the pain- not the wealth. They add pain to those working hard. Taking their money and redistributing it to those who stay in pain for not having something productive to fill their days. Wealth can only be shared through an open exchange of goods and ideas.
Reblogged this on Gds44's Blog.
Yes, I can wait thirty years for growth to compound me into wealth… or I can just vote myself a few thousand extra dollars in immediate yearly redistribution money,… raise my standard of living from the world’s top five percent up into the world’s top four percent,… use the money to buy some expensive beer from my local organic micro brewery,… and go meet my friends where we can discuss how the world has finally changed and how with a new attitude we can finally have both redistribution and high growth… if every citizen can just be drafted to serving mostly community rather than self and family. Seems a lot more fun than waiting three decades for growth to compound my nation and my descendants into prosperity. …and since I’ve sent down the tubes all those religions which once told me I should not live off other people’s money, who’s gonna stop me now? Bernie’s my hero! I’m on my way to stagnating from being in the world’s top four percent today, into the world average by a few decades. Follow me… or I’ll use my vote to make you…
[…] https://danieljmitchell.wordpress.com/2017/09/03/free-enterprise-the-worlds-only-successful-strategy… […]
Reblogged this on Elementary Politics News.