Tag Archives: economic development

Half the World is now Middle Class!

While there’s more work to do, here’s some good economic news from the Brookings Institute:

Something of enormous global significance is happening almost without notice. For the first time since agriculture-based civilization began 10,000 years ago, the majority of humankind is no longer poor or vulnerable to falling into poverty. By our calculations, as of this month, just over 50 percent of the world’s population, or some 3.8 billion people, live in households with enough discretionary expenditure to be considered “middle class” or “rich.” About the same number of people are living in households that are poor or vulnerable to poverty. So September 2018 marks a global tipping point. After this, for the first time ever, the poor and vulnerable will no longer be a majority in the world. Barring some unfortunate global economic setback, this marks the start of a new era of a middle-class majority.

For Consideration…

Bet nobody saw this coming.

Pope Francis has, perhaps inadvertently, made the moral case for tax cuts.

He is right that European Union governments should have aim to expand opportunity for all, so that everyone has the chance to lift himself out of poverty and provide for a family. Their failure to do so, the massive unemployment and even higher youth unemployment that have blighted much of Europe, is a scandal that deserves more attention.

But what the pope may not realise is that the best way governments can do this is to get out of the way, to cut public spending, reduce taxes, and allow the economy to flourish. This is not just theory; the evidence of the last couple of decades shows clearly the lower-taxed countries in Europe are far more successful at generating the economic growth and the jobs the pope knows that people need.

For more go here.