The One Chart That Proves Capitalism Works
The Economist published a chart last week showing how poverty will all but be eradicated by the year 2030.
In 1990, there were more than 2 billion people throughout the globe living under the international poverty line of $1.25 a day. By 2010, 1 billion of those people had risen out of poverty! This is an example of the positive impact economic freedom has on the world.
If these countries maintain their economic growth rate, poverty would fall from the one billion it's at today, to just over 200 million by the year 2030.
However, this economic shift will change the geography of poverty. For instance, China just reached the point where there are more people above the poverty line than below it. By the year 2020 there will barely be anyone left in China below the poverty line.
In recent years, the Chinese government has turned their country around by allowing more economic liberty and creating wealth rather than redistributing it.
Wherever free markets are put into practice, we see the creation of wealth. As shown in the chart below, when a country's overall wealth grows, even when it is not distributed evenly among social classes, everyone benefits.
By the year 2030, poverty levels will be around 200 million worldwide — a 3% poverty rate. Even though poverty will not be completely eliminated, we will have helped rescue 1.8 billion people from poverty over 40 years.
Allowing people the freedom to keep their own money and use their God-given talents is the best way to help families in need. Private charities and business will always do more to help a country prosper than government ever can.
That being said, this chart really does put things into perspective. While we take for granted the simple things in life, nearly 1 billion people throughout the globe are currently struggling to survive on less than $1.25 a day. While it's great to get involved and donate your time, talents, and resources to local charities, what's really going to help these families is economic liberty.