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The Human Prosperity Project Discussion

An Untold Economic Miracle
Why is it not enough to look at income inequality when analyzing the effects of economic policies?


Because these reforms have also elevated billions of people out of poverty

Most of the diagrams used to display inequality are like strait up and down skyscrapers. The effect is really more like a pyramid. As people, and institutions, accumulate wealth, they increasingly require support systems that employ people. Wealth becomes distributed (if somewhat unevenly) throughout the economic system. This increases economic opportunity for large numbers of people who otherwise would continue to be impoverished.