Carpe Diem

Chart of the greatest and most remarkable achievement in human history, and one you probably never heard about

wordpoverty2

Everybody’s featuring their “graphs and charts of the year,” like The Atlantic and the Washington Post (be sure to see Vice-President Joe Biden’s “Graph of the Year” on Amtrak ridership). Well, the chart above could perhaps qualify as the “chart of the century” because it illustrates one of the most remarkable achievements in human history: the 80% reduction in world poverty in only 36 years, from 26.8% of the world’s population living on $1 or less (in 1987 dollars) in 1970 to only 5.4% in 2006. (Source: The 2009 NBER working paper “Parametric Estimations of the World Distribution of Income,” by economists Maxim Pinkovskiy (MIT) and Xavier Sala-i-Martin (Columbia University).

What accounts for this great achievement that you never hear about? AEI president Arthur Brooks explains in the video below, summarized here:

It turns out that between 1970 and 2010 the worst poverty in the world – people who live on one dollar a day or less – that has decreased by 80 percent (see chart above). You never hear about that.

It’s the greatest achievement in human history, and you never hear about it.

80 percent of the world’s worst poverty has been eradicated in less than 40 years. That has never, ever happened before.

So what did that? What accounts for that? United Nations? US foreign aid? The International Monetary Fund? Central planning? No.

It was globalization, free trade, the boom in international entrepreneurship. In short, it was the free enterprise system, American style, which is our gift to the world.

I will state, assert and defend the statement that if you love the poor, if you are a good Samaritan, you must stand for the free enterprise system, and you must defend it, not just for ourselves but for people around the world. It is the best anti-poverty measure ever invented.

75 thoughts on “Chart of the greatest and most remarkable achievement in human history, and one you probably never heard about

  1. People can live on $1 a day because they have access to food & resources that are free. Civilisation, Capitalism changes that. Income is meaningless if you do not also specify how much you need to live.

    • Perhaps that’s good Socialism 101 old mate, but $1 a day is not living, it’s existing – a short and usually backbreaking existence.

  2. Correct me if i am wrong , but hasn’t value of money decreased too? what could be bought in a dollar in those days, now costs more?

Leave a Reply

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

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>