The Personal Website of Mark W. Dawson

Why is there so much poverty?

Why is there so much poverty is a frequently asked question. But it is the wrong question to ask. The correct question is “Why is there so much wealth?”. Poverty has been the normal standard of living throughout human history. Over 99% of humans that ever lived in poverty. Most of them lived in poverty under serfdom or slavery. It was only in the last several centuries that the common people have risen out of poverty and into a comfortable existence. They also have experienced more freedom and liberty as they threw off the shackles of despotism, royalty, aristocracy, and other forms of government where the common people were subservient to a (self) select few. Therefore, the real question is why did all of this happen?

The answer to this question can be summed up in one word – “Capitalism”. Prior to capitalism most common people worked to directly provide for themselves and their families with a large percentage of their labors confiscated by the ruling class. It was more important to meet the needs of the ruling class than it was to meet the needs of the common people. And since the ruling class was a very small percentage of people not much was produced outside of the needs of the ruling class.

Gradually, however, people started producing more than what they needed for themselves or the ruling class. This was fueled by advances in western science and technology that allowed for greater efficiencies in production. They began to sell their excess to their neighbors, villages, towns, cities, country, and other countries. And this economic system of production and trade was named “Capitalism”. The most talented, industrious, and intelligent producers began to acquire wealth. They began to develop newer and more efficient ways to produce and trade and capitalism flourished. Many of the common people began to rise above poverty as a result of these factors. Capitalism liberated the common person to better themselves and their families. With further advances in science and technology, the drudgery of manual labor was reduced. Indeed, in the 21^st-century industrial societies, drudgery is the exception rather than the rule. Labor saving devices abound, and life became much better rather than "solitary, poor, nasty, brutish, and short" as Thomas Hobbes described the natural state of mankind in his 1651 poem “Leviathan”.

Capitalism is also a driving force in Freedom and Liberty. For capitalism to flourish the common people needed the freedom and liberty to choose how to engage in capitalism. They also needed a government responsive to their needs that provided them with freedom and liberty. Governments in capitalistic societies began to evolve from a ruling class to a representative class. The common person also needed the “The Rule of Law” to protect themselves and their property from encroachments. This led the government to become “of the people, by the people, and for the people” and to provide “Equal Justice for All”.

Capitalism is also a moral good as it provides products and services at an affordable price to all, thus satisfying the needs and wants of others. To be a successful capitalist, you have to shift your focus outward, to the needs and wants of others - your customers. The only way to succeed is by knowing what your customers want and offering it to them at an affordable price. This has improved the lot of the common people while making the capitalist responsive to the needs and wants of the common people.

But Capitalism has its problems, too many of them to expound in this short article. Unbridled Capitalism can do harm, but tightly regulated Capitalism can do more harm. We must reach a balance in Capitalism between protecting the people and expanding Capitalism to promote economic freedom and liberty so as to improve the lot of the common people.

Many people and politicians today are expounding the idea of “Socialism” or “Democratic Socialism” as a means to correct the problems of “Capitalism”. However, as explained in my other article “Socialism and Capitalism” this is not a solution that benefits the common people, and often leads to serfdom. The solution to poverty is the expansion of capitalism into those areas and peoples experiencing poverty. Let us correct the problems of capitalism and retain self-government, freedom, and liberty for all.