The lecture started talking about the history of our world in economic aspects. We view how they were three stages that mark history's development. The first one was consider as the "Dark Ages" then "Renascence" and finally the "Industrial Revolution".
Our world saw a super slow rate of progressing or even no advance for a period of thousand of years. They had grow rate of 0.0012% when then in a period of 200 years we saw a tremendous advance of 4,000%. Just to give us an idea if we had continue with that same rate we had in 1500 right now an american will have the same amount of money the poorest country in the world has.
- Rule of 72: Divide by 72 the grow rate to get the number of years it will take for the GDP to double.
- Development stages: Hunting-Farming-Industrial Revolution
Economists and other people can calculate based on how the grow rate has behave that in 2046 our income will doubly every week. Furthermore in 2040 the grow rate will go from 3% to 6&!! Is it really possible to double every 2 weeks with the nano-nanotechnology, space, 3D printer and more....?
Population
2010 = 6.86 Billion persons
Fact:
- All the world can live together in Texas and they will be living in the same population density as people in Boston or NYC.
- There is no concern for population at all! We will use maybe just 4% of the land in the world to live.
- If we had stayed with the same population rate as in 1,000BC right now the whole world will be the USA population.
- Since before they only had extensive growth. Extensive Growth is when living standards don't improve because the new income was used to feed and transport this new person. (Intensive Growth)
- Today is 65 trillion usd and in 1800 was 1 trillion usd.
- Poverty has Decrease!
- 80% of reduction in extreme poverty in the past 40 years.
- 27% of population lived with $1 usd per day in 1970 now.....just 6%.
- You thought that Asian countries were destined to live in poverty forever. Right now South Korea is almost - Taiwan as - Singapore s more.... richer as the USA.
Random Question: If somebody earns 10 times more than you....Is he really richer and enjoys more than you?
Rule of 72: This isn't that important, but the rule of 72 is just a quick trick to help you figure out the doubling time, given a certain growth rate. So you actually divide 72 by the growth rate. In other words, to figure out how long it will take for GDP (or my income, or, say, $3) to double, we say 72/2% = 36 years (the growth rate of GDP is roughly 2% per year)
ReplyDelete