"Here are a few points to keep in mind. Using the $1.90 line shows that only 700 million people live in poverty."
It shows that "only" 700 million people live in extreme poverty as defined by the World Bank.
"If $1.90 is inadequate to achieve basic nutrition and sustain normal human activity, then it’s too low – period."
Yeah, no shit. Extreme Poverty is extremely bad.
"Remember: $1.90 is the equivalent of what that amount of money could buy in the US in 2011."
Yes, it's bad. Really really bad. Let's drive that point home some more.
"If we use $7.40 per day, we see a decline in the proportion of people living in poverty, but it’s not nearly as dramatic as your rosy narrative would have it. In 1981 a staggering 71% lived in poverty. Today it hovers at 58% (for 2013, the most recent data). Suddenly your grand story of progress seems tepid, mediocre, and – in a world that’s as fabulously rich as ours – completely obscene."
No it doesn't! The fact that the number of people that used to live in extreme poverty has gone down means that these people don't live in extreme poverty anymore. That's actually much more significant than the number of generally poor people that are now slightly less poor.