Countries Boost Incomes, Reduce Poverty with Capitalism
November 4, 2014
From 1990 to 2011, the percent of the world's population living in extreme poverty fell from 36 percent down to 15 percent. Why? Douglas Irwin, economics professor at Dartmouth College, says the answer is simple: capitalism.
The drop in poverty over the last quarter-century is the greatest drop in poverty in world history, writes Irwin, and it is due to the fact that developing countries implemented business-friendly economic policies. He offers a few examples:
Capitalism, says Irwin, was given a bad reputation by Marxists who equated capitalism with the exploitation of workers. But Irwin says Adam Smith had the better description of capitalism -- a "commercial society" in which all men could participate in markets. The growth of that commercial society has brought great improvements across the globe -- while 811 million workers earned less than $1.25 per day in 1991, that number had dropped to 375 million in 2013.
- China took major steps in 1978 when it allowed private businesses and private agricultural plots while putting an end to the state's monopoly over foreign trade. Today, Chinese workers have much higher wages, and fewer of them are living in poverty.
- India began doing away with its government licensing system in 1991. The country had required state approval not only for people to start new businesses but to expand existing ones and purchase foreign goods and parts. Like China, the state has seen a resulting drop in poverty and a boost in wages.
- Tanzania has seen major growth after it did away with price controls and other socialist policies in the 1980s.
Source: Douglas A. Irwin, "The Ultimate Global Antipoverty Program," Wall Street Journal, November 3, 2014.
We went up to China earlier this year and saw the truth of this for ourselves.
Those who persist with Marxism do poor people no favours.
4 comments:
Respect!!!
Well said Lindsay...
You got guts,
and guts is enough in my book...
In regards...
"We went up to China earlier this year and saw the truth of this for ourselves.
Those who persist with Marxism do poor people no favours."
It is my belief that a lot of the Chinese people in NZ are here because they are getting away from the commie system,
The Good Get Out... if you know what I mean...
I don't have any Chinese friends yet so I couldn't say for sure...
Meanwhile poverty increases in NZ, Aus, the UK, the US & especially Western Europe.
Why? Because we live in communist countries, not capitalist ones!
The tax rates were lower, there were fewer restrictions on drinking, driving & smoking (let alone nanny state rules about sugar, food & lightbulbs) in East Germany under Hoenecker than there are in NZ under Key.
Agreed Anon...
Get ready for more of it too..
John's going for his beefed up patriot act and his war...
{Puke}
Gee.... he's even going to get the fun police to ban fire works...
On a side note, not all commies are bad people,
I was doing some research and came across a bloke by the name of Vasili Alexandrovich...
Seems I owe him a beer...
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