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Home Illinois News

Measuring Prosperity and Inequality

Illinois Review by Illinois Review
February 12, 2020
in Illinois News
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Unnamed (4)If a quest to address income inequality in America compromises the conditions necessary for prosperity, we might once again find ourselves all equally poor.

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The world has achieved an unprecedented level of prosperity.  Economist Deirdre McCloskey has labeled this the Great Enrichment.  For the first time in human history, standards of living for ordinary people – as opposed to emperors or kings – have risen above subsistence.

Historical estimates of Gross Domestic Product (GDP) per capita, economists’ preferred measure of living standards, dramatically document the Great Enrichment.  Economist Angus Maddison began this project, now continued at the University of Groningen Growth and Development Centre.  The dollar figures mentioned here are in 1990 dollars, adjusted for inflation, and comparable across countries.

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