That site isn't going to help me with XIX century China.
I understand interest rates, and inflation, and purchasing power parity, and all that. That all works fine for more or less developed economies where people buy with money the great majority of what they consume.
The charts posted claim to reflect the entire world and they go back to early XIX century. Whole-world data at that point is nothing but a collection of guesstimates.
. Whole-world data at that point is nothing but a collection of guesstimates.
Yeah. My understanding is you basically get a bunch of economists in the room to break down the problem into relevant parts, then get a bunch of historians in the room, calibrate them, get them to give credible intervals for the relevant data, and plug it all in to the model.
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.