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♪ [music] ♪

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- [Tyler] Now what are [br]the key macro ideas?

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We're still on like two words,[br]so the biggie here,

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"prosperity matters."

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Sounds trivial, but a lot [br]of people actually deny it,

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though I'm not sure [br]they really mean what they're saying.

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They'll say something like,

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"Oh, you know, life was much better[br]back in 1910," or back wherever.

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But I think there's a lot [br]of evidence from economics.

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It can't tell you ethically [br]that a wealthier country

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is better than a poorer country,

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but it can tell you that most [br]of the things people want,

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they get more of it[br]in wealthier countries.

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And I don't just mean money --[br]if you look at health,

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infant mortality, the ability [br]to choose a career you want,

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women's rights, minority rights,[br]political liberty, democracy,

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civil liberties...[br]air conditioning! Right?

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You can't live [br]without air conditioning.

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These are all correlated [br]with prosperity.

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And I know correlated [br]doesn't mean cause.

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The causation runs both ways,[br]and it runs through third

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and other variables.

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But the simple point [br]that prosperity is very important.

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There's a lot we want to do.

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You have to actually pay the bills.

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There is a budget constraint,

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and the way you meet [br]that budget constraint

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is to be a wealthy nation.

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People will have different goals [br]in politics and with their lives,

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but basically the wealthier nations

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do a better job [br]of meeting those goals.

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And you can look [br]at other economic evidence.

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Again, this is not [br]a final ethical judgement,

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but the simple question[br]if people, say, are leaving Syria

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because life in Syria has [br]become too difficult --

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where is it ideally they want[br]to go when they have the choice?

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For the most part, they prefer[br]to go to wealthier nations.

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So in Europe, [br]the attraction was Germany,

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one of the wealthier nations.

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For migrants in general --[br]Canada, Australia, United States,

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United Kingdom, Switzerland --[br]wealthy, relatively free countries,

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of course, are where [br]people want to be.

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♪ [music] ♪

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- [Narrator] Click here [br]to watch the next episode

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of Tyler Cowen’s [br]"9 Big Ideas of Economics."

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Or, maybe you’re [br]not ready to move on

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and instead want[br]to learn more about this idea.

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Then you should [br]check out this video.

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Or, maybe you are dying to attend[br]one of our teacher events

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to mingle with other econ nerds.

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Click here for info on that.