An Untold Economic Miracle

Published May 21, 2020

Critics of free markets point to growing income inequality as evidence that capitalism only benefits the wealthy. But focusing too much on income inequality misses the more important point: market reforms of recent decades have lifted billions of people out of poverty. Whether in China, India, or many other nations, economic freedom benefits everyone.

Discussion Questions

1. Why is it not enough to look at income inequality when analyzing the effects of economic policies?
2. What happens to income when socialist policies are enacted? 

Additional Resources

• Read “Socialism, Capitalism, and Income” by Edward Lazear, available here.
• Watch “Edward Lazear on How to Reduce Income Inequality” on PolicyEd. Available here.