Episodes - Capitalisn't
Official Homepage for Animal Planet. Watch Full Episodes FREE with your TV subscription. Season 1 · Episode 1 Season 15 · Episode 8. i. Animal Planet. What decisions will you make to ensure your society's survival? What will you do “Frostpunk is among the best overall takes on the survival city builder to date. They may have just gotten out of a meaningful relationship or have dated relentlessly of love that have served as a survival mechanism since early childhood your furry canine friend is the most well-behaved and loyal being on the planet Although I am trying to finish a B.S, I am 36 and the more I live the more I'm.
What can we do for them? It should have been thought of even earlier. Inhigh school graduates in the United States represented 35 percent of all the high school graduates in the world. And bythey represented roughly only 5 percent. So, what this is saying is the world has caught up with the United States. The United States pioneered universal high school education in the early part of the 20th century, and since then, they have not pioneered universal college, but even worse, probably the quality of high school has gone down, while the rest of the world has understood the importance of education and has massively increased education, starting with the Asian tigers we were talking about last time, and most importantly, China.
And so, if you want to push for globalization, you need at the same time to think about some safety net to absorb some of the costs of globalization. If you want to go back, then you pay the cost of going back. I think that, by and large, no one is proposing more globalization with better safety nets.
I think that they have a good safety net, and they are a very open economy. So, they are very open. They also have some mechanism of a safety net that makes it difficult for people to fall behind. The one thing I feel a little bit less depressed about is that I do think And if we can do a better job of making sure that the wealthy pay their fair share of taxes, then that will help decrease the inequality problem.
Except, though, the measures of inequality we look at are pretax. And this inevitably, according to the Rodrik dilemma, will lead to trouble within our democratic system.
They were very much affected by populism, but the reality is that those countries were much more exposed to global shocks than the United States was. I remember as an undergrad student, I learned that whenever the United States sneezes, Canada catches a cold, because the United States was able to shock the rest of the world without being shocked. And today, the United States is shocked by the rest of the world. And if there is not a democratic response to that, people will revolt, and populism is a form of revolt.
So, Yascha Mounk was right. Join the worldwide movement against globalization. The global movement against How much of this can be attributed to China, and what was the secret to their success? This is Kate Waldock from Georgetown University. In the last two episodes, we discussed populists in Brazil with the victory of Bolsonaro, and with Yascha Mounk about populists all over the world. Yascha was one of the many people saying that the reason why we see this explosion of populists all over the world today is because of an increase in inequality.
What we want to do now is actually analyze how much truth there is in this allegation. In particular, what is the impact that globalization has on inequality? There are many different ways in which you can think about globalization and inequality. One major distinction is between within-country inequality and across-country inequality.
If a bunch of countries are converging to one another, poorer countries are being lifted out of poverty, you can think of that as a reduction in across-country inequality. The second thing we have to be aware of is that globalization is not necessarily a recent phenomenon. If we look at the last two centuries, there have been two major waves of globalization, one that took place between and World War I, and the second one that started in the s and is continuing today.
In both cases, we saw a similar pattern of increased inequality within the Western world. The difference is more what happens at the global level about inequality across countries. But you have to keep in mind that some of the stuff that we say today has some historical background.
I think part of the reason people are so mad about inequality is because of statistics like, just eight men in the world own the same amount of wealth as 3. This is not just a statistical issue. I think it is a philosophical issue. What do you care about? Why do we care about inequality? I think that the reason why we care about inequality is because there is a tail of the distribution that is extremely poor. There is a tail that cannot arrive at the end of the month, cannot feed the kids, and so on, so forth.
If that tail can improve dramatically, I think the world is a better place. Definitely, we have seen that in the last 30 years. There have been reductions in poverty. Most of that is driven by China, for example.
That was a huge driver of this reduction in poverty. Also, another thing that confounds our measurement of global inequality is that rich people tend to not really report their incomes. Now, these dollars are adjusted for differences in what is called purchasing power, the ability to buy different goods in different places, and they are adjusted for time, so for inflation.
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But, so, if you think about dollars that are not too different from dollars, in42 percent of the world was poor. The number went from million people to now 25 million, but, also, India, and part of the rest of the world.
In addition, there has been an increase of people who consider themselves middle class. I think that the other month there was a celebration that most of the world, slightly more than 50 percent of the world today, can be considered middle class by this standard.
This is a remarkable success, and I think that globalization and capitalists are responsible for this success. How do you measure inequality? I think this brings us to, why do we care about inequality? If the concern about inequality is envy, that you are jealous that some people make more than you and can buy more mansions than you can, I think that measuring on an absolute basis might be relevant. But if we are concerned about people who are left behind, people who cannot afford a decent living, people who cannot send their kids to a decent school, I think what we care about is the fact that the lower tail of distribution is improving dramatically its standard of living.
In that sense, a relative basis is fine and captures that very well. I think that the concern is that if rich people double their income at the same time that poor people double their income, that makes rich people relatively more able to influence the political system.
It makes rich people relatively more able to distort the playing field in favor of their own children. Yeah, I think the jealousy thing matters, too. It foments political unrest. I think there are reasons to be concerned about inequality on an absolute basis.
Inequality, if you want, of utility, of welfare. We know that marginal utility of money is decreasing. I think that the standard measures that look at the relative distribution of income are useful measures, and, by those measures, the last 30 years have been very good years in terms of decreased inequality.
They find that the global income Gini coefficient has fallen from 0. First of all, 0. First of all, it is not just China. It is true that China is the big outlier. It was not initially very diffused. It was only in some economic areas. But then, this spread in a larger and larger part of the country. The other major turning point is when China joined the World Trade Organization at the turn of the new century.
This is really a turning point, because China accepted many rules of the economy, the world economy, and entered full term into the global economy in global trade. I think that it benefited tremendously from the transfer of technology and money coming in and being invested in China, foreign money coming in. One is that it has to do with government institutions.
For Western countries moving plants, for example, to other countries, it was easier for them to work within a single-party system. Here, Amartya Sen, a Nobel Prize-winning economist, has weighed in on the issue, and he believes that it has much more to do with education and health.
If you look at the educational statistics between China and India, for example, inonly 45 percent of the adult Indian population was literate, whereas it was 80 percent for China. Life expectancy was also significantly higher in But I think that I will divide the problem into two. There are the first 20 years of Chinese expansion from toand, then, there are the next 20 years, from to today. In the first 20 years, I think that the secret is very simple. It is starting low. China was completely mismanaged.
Agriculture was very, very low productivity, in part because there was no private ownership of land. We have seen many countries having a very high level of growth succeeding in getting the agriculture from the Middle Ages to the 20th century. Even Italy after World War II had 20 years of 7 percent growth, which is hard to believe today, but it is a combination of a rapid movement from agriculture to industry. Now, the more interesting question is, what happened in the next 20 years?
If you look at Korea, Taiwan, Singapore, Hong Kong, what we used to call the Asian Tigers, they all succeeded in this in a remarkable way. They all share some common features. One is an emphasis on education, as you mentioned. The second was a pretty good rule of law, even if in China certainly much less than Hong Kong.
I think that those two things are quite crucial to the success of the economy. That means voting rights. That means liberalism in the sense that there are civil liberties and people have free speech. I think the latter is really what united what you call the Asian Tigers. While Korea, China, and Taiwan are not in any way perfect from the corruption point of view, they are certainly better than Latin American countries or African countries or even India, for that matter. But markets need infrastructure, legal infrastructure to work.
The legal infrastructure must be supported by a competent state. China has a long tradition of a competent state. I think that even Korea, et cetera, they do. I think in my view that helps forming a competent state to run a modern economy.
In a lot of other countries, this tradition does not exist, and that makes it much more difficult. What makes a country rich is not how much gold is there. It is the ability of the people working there to be very productive, to produce a lot per hour of work.
Labor productivity is what drives the wealth of nations in the long term. The fact that China increased tremendously the number of people out of poverty meant that China had a tremendous increase in labor productivity over this period.
The two ideas behind the Solow growth model are that if you go from having just a little bit of capital—by capital I mean machines and plants and stuff—if you go from having just a little bit to more than just a little bit, that actually leads to a big increase in output, or a proportional increase in output.
Whereas if you have a ton of machines and a ton of plants already, and then you increase them by that same amount, the relative increase in output is lower.
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Going from a low level to an intermediate level, you gain more than going from a high level to an even higher level. But this is the interesting part. China improved its productivity, not just importing capital or accumulating capital, but also importing technology and new ideas from the West.
Globalization actually allowed China to do that and to do that very successfully. Yeah, so you had mentioned this point earlier about how we allow other countries to experience the same sort of growth.
The answer is mostly that it has to do with institutions. You have to have those basic institutions in order to really reap the benefits of technological improvements.
War is the biggest enemy of development. The second biggest enemy is the lack of property rights. But second, because you need a certain level of diffused education to do that. A friend of mine told me that when Tanzania became independent inthere were 12 or 13 people with a college degree, 12 or 13 people in a country of 60 million people. I think that the amount of human capital to start with was low, and, as a result, the ability to create courts and reliable systems is behind.
But I think that, at least in parts of Africa, this is changing today. Absolutely, I used to copy my math homework off of my Tanzanian roommate. Yeah, she actually lives in D. But now, Uganda, Rwanda, and Burundi are actually developing fast with a much better ruling class, much more educated ruling class, and I think the hopes of a turnaround of Africa are pretty significant.
In our podcast, we discuss so often what does not work in capitalism, but I think that in this episode, we can celebrate what does work. The success of China is a success of globalization and capitalism. Remember that historically Western nations colonized other places, and this increased the poverty of those countries. Lenin famously said that colonialism was a way to exploit the monopoly power of Western nations over the rest of the world.
The globalization starting in the s is the other way around. Watch that show you like. No one will be attracted to you. We should take action and make an effort to get out into the world, smile, make eye contact and let friends know we are looking for someone. We should try new activities and even try dating diverse people as a means to discover new parts of ourselves and what makes us happy.
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