British writer, journalist and politician Daniel Hannan hosts the newest video from Prager University, “As the Rich Get Richer, the Poor Get Richer,” in which he debunks popular myths about capitalism used to attack the free market system.
“The truth is that global inequality is tumbling,” explains Hannan. “Yes, the rich are getting richer, but the poor are getting richer faster. And what’s driving that process? The market. Look at the most basic measures: Literacy. Longevity. Infant mortality. Calorie intake. Height. More and more people are being lifted out of poverty.”
Hannan explains how just in the last 40 years, the cost of living has gone up, more people are getting educated, and more households are able to afford once expensive luxuries.
“Go a little further back,” he says. “In the seventeenth century, the most powerful man in the world was Louis XIV of France. Every night, he’d have 40 dishes prepared for his dinner, and he’d pick the one he felt like. Think about it: A receptionist today can stop off at a store on her way home and have not only a wider choice than that king, but a fresher one and a healthier one. We all live better than Louis XIV.
“What has caused that miracle? Not any U.N. development program. Not any government aid scheme,” he says. “What caused it was the market.”
Hannan continues, “The most rapid falls in poverty are happening in countries that are joining the global trading system. Compare growth rates in free-trading Colombia and protectionist Venezuela; or in free-trading Vietnam and protectionist Laos; or in free-trading Bangladesh and protectionist Pakistan. It’s the same story every time.”
Watch the video below: