The myth asserting that as the rich get richer the poor get poorer isn’t true. Contrary to headlines about wealth inequality, we’re winning the war on poverty. The business of creating wealth lifts over 50 million people a year out of poverty.
China serves as a telling example of the effect that wealth creation has on poverty. After China’s revolution in 1949, Chairman Mao installed a centralized system that he claimed would allow everyone to share in the wealth. The results weren’t good. Between 1958 and 1962, 20 million died from famine. When China’s new leader, Deng Xiaoping, visited the U.S. in 1979, 88 percent of the population in China lived below the poverty line. China was poor, broken, and trending further downward.
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