To fight increasing inequity, we need to combine the profit motive with the yearning for justice
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Welfare helps alleviate poverty. But growth can end it. Asia’s example over the past half-century teaches that there are two critical ways to raise incomes: create jobs—and create more jobs. And the way to do that is to boost economic growth. When nations like China set in place the market-friendly policies to supercharge their growth rates, poverty melted away. In 1981, figures the World Bank, about 52% of the population of the developing world lived on less than $1.25 a day. By 2008 that share had shrunk to 22%, owing largely to gains made in Asia.
That plunge in poverty levels is truly one of the greatest achievements in human history.