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Condition 1 is easy, look at China. Until about fifteen years ago would you seriously argue they belonged to the first world? Hell, even now the -average- Chinese doesn't have a wristwatch. So we go from next-to-no contact with the first world, to an orgy of trade. Are the Chinese now worse off? Au contraire. Life expectancy up, infant deaths down, industry drawing people from the countryside.
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SIghs
Thankyou for proviing my point. Its cheaply made chinese products imported to america that allow for that high quality of life - if they were all made in the US they'd cost 10x as much and therefore not be commonly availaible. Its made possible by third world wages being a frraction of first world ones for similar work.
In a sense it does slowly spread some wealth, but only after alot of kicking and screaming every cent of the way.
That is the key point i was making.