Global billionaires and poverty reduction go hand in hand

Published December 6, 2021 12:00pm ET



The Index of Economic Freedom, compiled every year by the Heritage Foundation, shows that the most capitalist countries have an average per capita GDP of $71,576. That compares with $47,706 for the world’s “predominantly free” countries. At the other end of the scale are the “mostly unfree” and the “repressed” countries. They have a per capita GDP of just $6,834 and $7,163, respectively.

The United Nations’s Global Multidimensional Poverty Index measures various forms of poverty (including health, standard of living, and education) in 80 developing countries. If you compare the U.N.’s MPI with the Index of Economic Freedom, you see that 35.3% of the populations of the “mostly unfree” developing countries live in “multidimensional poverty,” compared with only 7.9% of people in “mostly free” developing countries.

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