Quote of the Day: 42.4% increase in the price of being poor

Perhaps the most striking example is the World Bank, which is now considering a massive revision to how they define ‘poverty’.

The global poverty line used to be defined as living on $1/day or less. Then they had to increase that to $1.25 in 2008, since, even for the world’s most impoverished, one dollar wasn’t such a big sum anymore.

Now the World Bank is looking at increasing that poverty line even further, to $1.78. That’s a 42.4% increase.

All of this is because new economic data from Centre for Global Development and the Brookings Institution showed that the number of people living on less than $1.25 has halved.

It’s not because there are that many fewer poor people in the world. It’s that you can’t even be poor anymore on $1.25/day.

Thanks to all the money printing that has taken place around the world, it takes a much greater sum these days… just to be impoverished.

Not that there’s any inflation.

This is from Simon Black at the Sovereign Man.

Oh with increasing risks of protectionism as world powers square off over territorial borders which has now spilled over to the economic front (so far with limited scope of sanctions), more regulations and mandates, higher taxes and the deepening global bubbles, which will result to a combo of stagflation and bubble busts, global poverty levels will rise again.