Whenever capitalism and free markets are employed, even in the smallest of manners, in any place around the world, wealth, quality of live and the standard of living suddenly improves.
It’s then no surprise that the world poverty rate is set to dip to under 10 percent of the global population this year, according to the World Bank. This will be the first time that has ever happened.
“This is the best story in the world today — these projections show us that we are the first generation in human history that can end extreme poverty,” Jim Yong Kim, World Bank’s president, said, in a statement.
The World Bank estimates that the number of people living in poverty declined to 702 million, which is 9.6 percent of the world’s population. Now compare that to 2012 when 902 million people were living below the poverty line, which was 12.8 percent of the population.
Pretty much everyone is better off. Unfortunately, the only places that don’t seem to be improving their situation are the ones embroiled in constant conflict or rely too heavily on commodities.
Kim believes the world is inching ever so closer to the “historic goal of ending extreme poverty by 2030.”
The global institution defines living in poverty as living on less than $1.90 per day.
It’s truly remarkable how much the world has accomplished in the past 120 years. The industrial revolution and the embracing of free markets has unleashed a tidal wave of wealth. Indeed, the top one percent is better off, but so is everyone else.
Here are a few superb quotes from economist Milton Friedman:
“The great achievements of western capitalism have rebounded primarily to the benefit of the ordinary person. These achievements have made available to the masses conveniences and amenities that were previously the exclusive prerogative of the rich and powerful.”
“The world runs on individuals pursuing their self interests. The great achievements of civilization have not come from government bureaus. Einstein didn’t construct his theory under order from a, from a bureaucrat. Henry Ford didn’t revolutionize the automobile industry that way.”
“The problem of social organization is how to set up an arrangement under which greed will do the least harm, capitalism is that kind of a system.”
And here is a video:
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