Right. So that gets me curious about how did they estimate the percentage of people living in "extreme poverty" in, say, 1850 China, and what are the error bars on that estimate.
Speaking qualitatively, if we take the "living on the edge of subsistence" meaning, the charts say that around 90% of the human population lived "on the edge of subsistence" in mid-XIX century. Is that so? I am not sure it matches my intuition well. Even if we look at Asia, at peasantry of Russia and China, say, these people weren't well-off, but I have doubts about the "edge of subsistence" for all of them. Of course, a great deal of their economy was non-trade local which makes estimating their consumption in something like 2009 US dollars... difficult.
Cross-posted from my blog here.
One of the greatest successes of mankind over the last few centuries has been the enormous amount of wealth that has been created. Once upon a time virtually everyone lived in grinding poverty; now, thanks to the forces of science, capitalism and total factor productivity, we produce enough to support a much larger population at a much higher standard of living.
EAs being a highly intellectual lot, our preferred form of ritual celebration is charts. The ordained chart for celebrating this triumph of our people is the Declining Share of People Living in Extreme Poverty Chart.
(Source)
However, as a heretic, I think this chart is a mistake. What is so great about reducing the share? We could achieve that by killing all the poor people, but that would not be a good thing! Life is good, and poverty is not death; it is simply better for it to be rich.
As such, I think this is a much better chart. Here we show the world population. Those in extreme poverty are in purple – not red, for their existence is not bad. Those who the wheels of progress have lifted into wealth unbeknownst to our ancestors, on the other hand, are depicted in blue, rising triumphantly.
Long may their rise continue.