Poverty 54% to 28%

Two years ago, over half of Argentina's population lived in poverty. Today that's been cut in half. In just two years the poverty rate dropped from 54% to 28%. 

President Milei has held office since December of 2023, a little over two years ago--the same two years. How has Milei accomplished this tremendous turn-around? 

As a former economist, he understood something important: socialism produces poverty. His country had been under socialism for almost a century. Part of his strategy has been to reduce the size of the government. State subsidies along with public sector payrolls were slashed.

Inflation declined from 200% when he took office to 33% two months ago. For the first time in about a century, Argentina had a fiscal surplus in 2025.

A chainsaw is the symbol of his attack on overspending and socialism.

from Washington Post

(cont'd tomorrow)

US poverty? 2

(cont'd from yesterday's post)

America does not ignore the poor who can't afford housing, food, medical care, etc. A huge 51% of our annual federal spending goes to entitlements. But those benefits are not counted in the poverty statistics you saw yesterday for some reason.

That's the first important point of yesterday's video: the actual percentage of people in the US who lack basic needs is about 3%, not 10-18%. (That means 23 million to 60 million fewer people in the US live that way.) Though their earned income is under the poverty point, government payments lift their lifestyle out of poverty.

We don't want millions of our fellow citizens to lack the necessities, so we're happy to help. That's the motivation behind the American "safety net." 

Unfortunately, there's an unintended consequence of the welfare system, explained very well in yesterday's video. A significant number of people content themselves with dependence rather than using their lives productively. Surprisingly, that includes about 7 million men of working age. Not good for America--devastating for those men.

US poverty? 1

How could America, one of the richest countries in the world, tolerate a crisis of poverty? Claims are published that ~10 to 17.8% of our people are suffering in dire poverty.

If you hear something like this, you have to wonder why the government doesn't lend a hand. But wait, different levels of government have lots of ways to help. If vast numbers of people are barely surviving, why don't they sign up for food stamps? It's confusing. 

What do the numbers mean?

H.O.O.D.

A rooftop tent is not a comfortable or convenient spot to spend 345 days, not in Chicago. But Corey Brooks did it to bring attention to Project H.O.O.D.

photo

Pastor Brooks started the project to help the people of Chicago's south side. He wants to give them hope for a good future, to “end violence and build communities, one neighborhood at a time. We are creating leaders, strengthening character, seeking to end violence and generational poverty in urban areas. Our goal is to nurture these human resources and provide them with positive and consistent adult interactions."

It's not a small vision and they need a lot of money to do it. So far they've raised $28.5 million toward the $35 million goal.

The pastor and his wife are driven by a conviction that God gave the vision to them, wants them to do it, and will provide what it takes. Listen to him, the "Rooftop Pastor," on this podcast.

World prosperity 2

(cont'd from yesterday's post)

In the "age of globalization" mentioned yesterday (starting ~1980), more free & open  markets are available. People dream of starting their own business and making it a success, but they are held back if they live in a command-type society where no person-owned business is allowed by government. Freer economies provide many more opportunities.

When more people are free to dream about prospering, their society has more prosperity. 

Cambodia's story is a great example. Check out the series from last fall:

Cambodia 1
Cambodia 2
Cambodia 3
Cambodia 4

Mr. Lim (owner of a tourism business) says in "Cambodia 4" that his country prospered because of freedom, technology, and the "entrepreneurial spirit of the Cambodian people."

map

World prosperity 1

Last Friday's post included World Bank's chart of growing prosperity in the world's poorest countries. Global poverty has been shrinking for decades while the good metrics (education, nutrition, etc.) climb higher. 

Some might ask: is this just World Bank's self-serving interpretation? No, the global trend is widely reported. Just as an example, the Foundation for Economic Education (FEE) is definitely on the other side of the political spectrum, but it reports the same global trend.

In 1992 the world's population was about 5.5 billion. Twenty-five years later it was about 7.5 billion. In spite of adding two billion additional people to the world, the number of extremely poor fell. How did that happen?

"The Industrial Revolution turned the once-impoverished western countries into abundant societies. The new age of globalization, which started around 1980, saw the developing world enter the global economy and resulted in the largest escape from poverty ever recorded."

Asean business networking

(cont'd tomorrow)

2020 vision 2

(cont'd from yesterday's post)

It's true. People of the world's poorest countries are not getting more destitute, but rather getting more prosperous. I've reported this a number of times in the past seven years, and there are always surprised and skeptical readers. Take a look at the World Bank's chart:

Poverty and child mortality in these poorest countries have been in decline for decades, while measures of education, clean water, etc. are growing.