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Marx and Engels were right when they observed in the Communist Manifesto that free markets had in a short time created greater prosperity and more technological innovation than all previous generations combined. A century and a half later, all the evidence shows that capitalism has lifted millions and millions from hunger and poverty. Today's story about global capitalism, shared by right-wing and left-wing populists, but also by large sections of the political and economic establishment, does not deny that prosperity has been created, but it says it ended up in far too few hands.

It's on the television, in the papers, and in our minds. Every day we're bludgeoned by news of how bad everything is - financial collapse, unemployment, growing poverty, environmental disasters, disease, hunger, war. But the rarely acknowledged reality is that our progress over the past few decades has been unprecedented. By almost any index you care to identify, things are markedly better now than they have ever been for almost everyone alive.

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