Jonathan Haidt, a notable New York University psychology professor, says
that there is no substitute for free-market capitalism as a promoter of human
prosperity. He further substantiates his stance by taking the help of the
research findings of late British economist Angus Maddison. Research
indicates that United States GDP per capita takes a steep upward curve near
1776 which was way before than other countries. The year 1776 is marked by
certain fortuitous events such signing of declaration of independence and the
publication of a famous book called “The Wealth of Nations” by Adam Smith
who was a Scottish economist and philosopher. Smith discussed in his book
how to create a free–market capitalist economy and the benefits of doing so.
The wise founders of America willingly took Smith’s principles to heart and
implemented them. In a mere span of 100 years, United States became the
world’s biggest economy. However, it is true that wealthy got wealthier, the
poor and the mediocre class also greatly benefited from free-market
capitalist economy. A report of World Bank states that 94% of the world
population lived in extreme poverty in 1820. However by 2015, the number
reduced to unprecedented 9.6%. Johan Norberg, a Swedish economic
historian, shows the effect of free market economy on ordinary people. In his
findings, he summarized how hunger, poverty, illiteracy and child mortality
rate has sharply declined since 1990 with the decline in socialism while the
world population increased by 2 billion. This further proves that how