Sunday, February 19, 2017

Michael Roberts — Inequality after 150 years of Capital

The IMF and other agencies like the World Bank like to argue that economic growth has picked up so much under capitalism that millions have been taken out of poverty. But economic experts in the field of poverty and global inequality reveal from their figures that official ‘poverty’ has declined for just two reasons. The first is that the definition of poverty of those living on less than$1 a day is out of date; and second because nearly all the decline has been in China due to its unprecedented economic growth under a state-controlled and directed economy, still far from market capitalism seen in 19th and 20thcentury capitalism that Piketty and others have analysed. In most low income countries inequality has hardly changed from very high levels.
Michael Roberts Blog
Inequality after 150 years of Capital
Michael Roberts

1 comment:

Postkey said...

This is the view of ActionAid

“The self-styled liberal faction of the Deep State has convinced itself that capitalist growth helped halve global poverty since the 1990s, but there’s reason to question that. That success rate is calculated from the World Bank poverty measure of $1.25 a day, a level of very extreme poverty. But this poverty measure is too low.
While the numbers of people living in extreme poverty has indeed halved, many of those people are still poor, deprived of their basic needs. A more accurate measure of poverty shows that the number of poor worldwide has overall increased.
As the London-based development charity ActionAid showed in a 2013 report, a more realistic poverty measure lies between $5 and $10 a day. World Bank data shows that since 1990, the number of people living under $10 a day has increased by 25 percent, and the number of people living under $5 a day has increased by 10 percent. Today, 4.3 billion people — nearly two-thirds of the global population — live on less than $5 a day.
So really, poverty has worsened in the Age of Progress. And now the unsustainability of this equation is coming home to roost even in the centres of global growth, where wealth is most concentrated.”