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Does free trade make poor people poorer?

In countries whose inhabitants are free to trade, the poor generally have far greater opportunity to work and earn the money that will lift them out of poverty. As a result, in such countries a much smaller proportion of people live in absolute poverty than in countries that impose restrictions on trade. 

  • In the past twenty years, over 400 million people have escaped from poverty in China, in large part as a result of their government's unilateral removal of barriers to trade.
  • Tens of millions of people in India have escaped from poverty as a result of the removal of barriers to trade and investment.
  • Meanwhile, the number of people living in absolute poverty in Zimbabwe, North Korea, Turkmenistan and Cuba has increased -- as a result of existing and new barriers to trade (both internal and external).

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