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U-T EconoMeter faces off with Pope Francis on income equality

Roger Showley, U-T SAN DIEGO

Friday, December 20, 2013

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Kelly Cunningham, National University System

Answer: YES

Not because of unfettered capitalism, but by ruling parties disrupting the flow of wealth. The best system for distributing wealth and prosperity derives from market-based economies. Capitalism reduces poverty, not increases it. Rising globalization and the spread of capitalism enable developing countries to converge on advanced economies after centuries of divergence. Successfully emerging poor countries today engage the global economy, allow market prices to balance supply and demand, and allocate scarce resources to spur investment, trade and job creation. Meanwhile, America heads the opposite direction with 95 percent of real income growth the past five years accruing to the top 1 percent.