The Hockey Stick of Human Prosperity
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0:00 - 0:05♪ [music] ♪
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0:11 - 0:14- [Don] The astonishing
growth in prosperity -
0:14 - 0:15in the last two
or three hundred years -
0:15 - 0:18is one of the greatest events
of humankind. -
0:18 - 0:21Take the average human
in, say, the year 1000 BC. -
0:22 - 0:25He's poor, fighting to find food
and to fend off diseases. -
0:26 - 0:28Fast forward 500 years
to the time of classical Greece. -
0:29 - 0:31Still poor, still hungry.
-
0:31 - 0:33How about another
thousand years after that? -
0:33 - 0:35It's the dark ages.
-
0:35 - 0:37Wow. Still poor.
-
0:37 - 0:40Then jump to the 18th century
and forward. -
0:40 - 0:42Things change rapidly.
-
0:44 - 0:46This phenomenon is known
as the hockey stick -
0:46 - 0:48of human prosperity.
-
0:48 - 0:51Take what is surely one
of the most important measures -
0:51 - 0:53of human well-being:
life expectancy. -
0:54 - 0:57Before the Industrial Revolution,
life expectancy -
0:57 - 0:59was around thirty years.
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0:59 - 1:02Today in the United States,
we expect to live -
1:02 - 1:04to be about eighty.
-
1:04 - 1:08Prior to the industrial revolution,
one in four kids would die -
1:08 - 1:10before the age of 5.
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1:10 - 1:14Today in developed countries,
it is more like 1 in 200. -
1:14 - 1:18Due to better nutrition,
we grow to be four inches taller -
1:18 - 1:20than we were just 250 ago.
-
1:21 - 1:23Remember this disease?
-
1:23 - 1:26No you don't,
because it was eradicated in 1977. -
1:26 - 1:29Look around -- you'll find a roof
over your head -
1:29 - 1:31and a hard floor under your feet.
-
1:31 - 1:34Most of our ancestors
lived in huts with dirt floors -
1:34 - 1:35and thatched roofs.
-
1:36 - 1:39Everything was infested
with insects and rodents. -
1:39 - 1:41Streets and alleys
were open sewers. -
1:41 - 1:43There were none of these.
-
1:43 - 1:46The filth was horrible
and often toxic. -
1:47 - 1:49Our ancestors ate gruel
-
1:49 - 1:52and wore the same
home-made underwear over and over. -
1:52 - 1:55Now, even the least fortunate
Americans -
1:55 - 1:58typically have electricity,
running water, toilets, -
1:58 - 2:03refrigerators, televisions,
and, yes, cheap washable underwear. -
2:04 - 2:06Those of us who live
in modern industrial society -
2:06 - 2:11are incredibly, amazingly,
off the charts rich -
2:11 - 2:12compared to our ancestors,
-
2:12 - 2:15and here's yet another
huge difference between us -
2:15 - 2:16and our ancestors.
-
2:17 - 2:20Before the Industrial Revolution,
people knew how to make -
2:20 - 2:22from scratch many of the things
they consumed. -
2:22 - 2:24They made a lot
of their own clothing, -
2:24 - 2:27grew most of their own food,
and built their own dwellings. -
2:28 - 2:31Fast forward to today
and believe it or not, -
2:31 - 2:34none of us has a hint
of how to make the majority -
2:34 - 2:36of the things that we consume.
-
2:37 - 2:39Just getting ready in the morning
involves taking many trips -
2:39 - 2:41around the globe.
-
2:42 - 2:43Take this coffee for example.
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2:44 - 2:47The beans come from Guatemala,
and they were brewed -
2:47 - 2:49in this coffeemaker
from Switzerland. -
2:50 - 2:53The container ship that carried
the beans was built in Korea. -
2:53 - 2:55It's insured by a company
from London -
2:55 - 2:58and it's captained by a Frenchman
who loves Turkish cigarettes. -
2:59 - 3:02We've transitioned from each of us
doing many things -
3:02 - 3:04to each of us doing one thing.
-
3:04 - 3:08Having a job only makes sense
in a modern world -
3:08 - 3:12where each individual typically
does only one type of work. -
3:13 - 3:17So while we mostly only produce
one thing, doing one job, -
3:17 - 3:19each of us now consumes
a whole bunch of products -
3:19 - 3:22that require a whole bunch
of jobs to produce. -
3:24 - 3:25The question
of where prosperity comes from -
3:25 - 3:27launched the field of economics.
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3:27 - 3:30It's why Adam Smith
wrote the first book -
3:30 - 3:31in modern economics.
-
3:31 - 3:34An Inquiry into the Nature
and Causes -
3:34 - 3:35of The Wealth of Nations.
-
3:36 - 3:40Back in 1776 when he published it,
Smith was trying to understand -
3:40 - 3:43the causes of modern prosperity
that were just starting to appear. -
3:44 - 3:46Poverty and starvation
were still normal as they had been -
3:46 - 3:49from the beginning,
but in the late 18th century, -
3:49 - 3:53for the first time ever,
the masses began to enjoy riches -
3:53 - 3:55once reserved only
for the nobility. -
3:55 - 3:59It is this mass prosperity
that Adam Smith sought to explain. -
4:00 - 4:01Why was it happening?
-
4:01 - 4:04What was causing wealth
to move from being the exception -
4:04 - 4:05to being the norm.
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4:06 - 4:07Now we look around,
and try to figure out -
4:07 - 4:11what causes poverty
instead of what causes prosperity. -
4:12 - 4:14You are watching
Everyday Economics, -
4:14 - 4:16a course where we use
the lens of Economics -
4:16 - 4:18to explore everyday questions.
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4:19 - 4:20This section is about trade.
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4:21 - 4:24In the upcoming videos,
we will attempt to explain -
4:24 - 4:26how trade plays a role
in our prosperity. -
4:27 - 4:29You also get to decide
where the course goes. -
4:30 - 4:31Maybe you have some questions
related to trade -
4:31 - 4:33that you've wondered about.
-
4:33 - 4:35We'll cover the basics
and then you tell us -
4:35 - 4:38what topics come next.
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4:38 - 4:42♪ [music] ♪
- Title:
- The Hockey Stick of Human Prosperity
- Description:
-
In this series, Professor Don Boudreaux explores the question economists have been asking since the era of Adam Smith -- what creates wealth? On a timeline of human history, the recent rise in standards of living resembles a hockey stick -- flatlining for all of human history and then skyrocketing in just the last few centuries. Without specialization and trade, our ancient ancestors only consumed what they could make themselves. How can specialization and trade help explain the astonishing growth of productivity and output in such a short amount of time—after millennia of famine, low life expectancy, and incurable disease?
What topic should we do next?
http://feedback.mruniversity.com/forums/256061-everyday-economics-boudreaux-on-trade-and-prospeAsk a question about the video:
http://mruniversity.com/courses/everyday-economics/trade-growth-hockey-stick-human-prosperity/#QandANext video:
http://mruniversity.com/courses/everyday-economics/division-labor-burgers-and-container-ships - Video Language:
- English
- Team:
- Marginal Revolution University
- Project:
- Everyday
- Duration:
- 04:55
Martel Espiritu edited English subtitles for The Hockey Stick of Human Prosperity | ||
Martel Espiritu edited English subtitles for The Hockey Stick of Human Prosperity | ||
Martel Espiritu edited English subtitles for The Hockey Stick of Human Prosperity | ||
Martel Espiritu edited English subtitles for The Hockey Stick of Human Prosperity | ||
MRUniversity edited English subtitles for The Hockey Stick of Human Prosperity |