10 Reasons to Love the Free Market
1. The free market reduces poverty
A 2013 study published by the World Bank which examined 18 countries over four decades, found that 75% of the income gains accruing to the bottom 40% of income earners were a result of economic growth. Thus, policies which promote economic growth are very much in the interest of the poor. The market economy delivers pretty exceptional growth outcomes. It should then come as unsurprising that research finds that countries with more economic freedom experience faster rates of poverty reduction.
The study found that countries with institutions and policies more consistent with economic freedom are likely to grow more rapidly and achieve larger reductions in poverty than those with less economic freedom. Looking at the success of the fastest growing economies of the last 100-150 years we can see that the indicators of economic freedom such as openness to trade and small size of the government are robustly associated with poverty reduction.
