Capitalism and extreme poverty: A global analysis of real wages, human height, and mortality since the long 16th century
This paper assesses claims that, prior to the 19th century, around 90% of the human population lived in extreme poverty (defined as the inability to a…
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The common notion that extreme poverty is the “natural” condition of humanity and only declined with the rise of capitalism rests on income data that do not adequately capture access to essential goods.
Data on real wages suggests that, historically, extreme poverty was uncommon and arose primarily during periods of severe social and economic dislocation, particularly under colonialism.
The rise of capitalism from the long 16th century onward is associated with a decline in wages to below subsistence, a deterioration in human stature, and an upturn in premature mortality.
In parts of South Asia, sub-Saharan Africa and Latin America, wages and/or height have still not recovered.
Where progress has occurred, significant improvements in human welfare began only around the 20th century. These gains coincide with the rise of anti-colonial and socialist political movements.
