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Evan Davis interviews economic historian Deirdre McCloskey in front of an audience at the London School of Economics, where she argues that poverty matters more than inequality. She describes how at the beginning of the 19th century most people who had ever lived had survived on $3 a day. Today, on average, people in Western Europe and North America live on over $100 a day. Although Professor McCloskey is an economic historian, she says we can't explain this 'Great Enrichment' using economics alone. She also argues that capitalism is an inherently ethical system, and that it would be a mistake to prioritise equality over innovation. Prof McCloskey talks about the role of ideas and attitudes in creating modern prosperity and discusses what her study of history tells us about where our priorities should lie today.

Producer: Luke Mulhall.