5/30/2023 0 Comments Donut economy kate raworth![]() No government policy in human history has even come close to what markets have done over that period. In other words, severe poverty fell almost 75 percent in a mere 25 years, thanks to the freeing of global markets, especially in China and India. The number of people living on less than $1.90 per day (the current standard for extreme poverty) fell from 1.9 billion people, or about 37 percent of the world’s population, to about 700 million (9.6 percent) between 19. The result of all of these events has been an unprecedented reduction in human poverty. ![]() ![]() The success of that basic economic insight has generated immense cognitive dissonance among many progressives. The Scandinavian countries have understood that even supporting a generous welfare state requires domestic economic growth, which has led them to cut business regulation and taxation in ways that have given them freer markets than in the US. ![]() Many governments around the world have recognized the reality of the power of markets, liberalizing international trade and de-nationalizing production to benefit from the power of domestic competition. The last 30 years have seen the demise of the Soviet Union and its administrative-command economy as well as a revolution in technology and trade that has reduced the transaction costs of using markets. ![]()
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