[Script Info]
Title: 
[Events]
Format: Layer, Start, End, Style, Name, MarginL, MarginR, MarginV, Effect, Text
Dialogue: 0,0:00:08.86,0:00:11.32,Default,,0000,0000,0000,,
Dialogue: 0,0:00:11.32,0:00:15.13,Default,,0000,0000,0000,,The astonishing growth in prosperity in\Nthe last two or three hundred years
Dialogue: 0,0:00:15.13,0:00:19.15,Default,,0000,0000,0000,,is one of the greatest events of\Nhumankind. Take the average human in say
Dialogue: 0,0:00:19.15,0:00:23.64,Default,,0000,0000,0000,,the year 1000 BC. He's poor, fighting to\Nfind food
Dialogue: 0,0:00:23.64,0:00:28.30,Default,,0000,0000,0000,,and to fend off diseases. Fast forward 500\Nyears to the time of classical Greece.
Dialogue: 0,0:00:28.30,0:00:32.84,Default,,0000,0000,0000,,Still poor still hungry. How about another thousand years after that?
Dialogue: 0,0:00:32.84,0:00:36.33,Default,,0000,0000,0000,,It's the dark ages. Wow. Still poor.
Dialogue: 0,0:00:36.33,0:00:43.33,Default,,0000,0000,0000,,Then jump to the 18th century and forward. Things change rapidly.
Dialogue: 0,0:00:43.39,0:00:48.57,Default,,0000,0000,0000,,This phenomenon is known as the hockey\Nstick of human prosperity. Take what is
Dialogue: 0,0:00:48.57,0:00:51.50,Default,,0000,0000,0000,,surely one of the most important\Nmeasures human well-being:
Dialogue: 0,0:00:51.50,0:00:56.01,Default,,0000,0000,0000,,life expectancy. Before the Industrial\NRevolution
Dialogue: 0,0:00:56.01,0:00:59.57,Default,,0000,0000,0000,,life expectancy was around thirty years.\NToday
Dialogue: 0,0:00:59.57,0:01:02.72,Default,,0000,0000,0000,,in the United States we expect to live\Nto be about eighty.
Dialogue: 0,0:01:02.72,0:01:06.17,Default,,0000,0000,0000,,Prior to the industrial revolution one
Dialogue: 0,0:01:06.17,0:01:09.35,Default,,0000,0000,0000,,in four kids would die before the age of 5.
Dialogue: 0,0:01:09.35,0:01:13.99,Default,,0000,0000,0000,,Today in developed countries it is more like\None and two hundred.
Dialogue: 0,0:01:13.99,0:01:17.60,Default,,0000,0000,0000,,Due to better nutrition we grow to be\Nfour inches taller
Dialogue: 0,0:01:17.60,0:01:20.63,Default,,0000,0000,0000,,than we were just two hundred fifty years\Nago.
Dialogue: 0,0:01:20.63,0:01:24.43,Default,,0000,0000,0000,,Remember this disease? No you don't, because\Nit was eradicated in
Dialogue: 0,0:01:24.43,0:01:28.95,Default,,0000,0000,0000,,1977. Look around--you'll find a roof over\Nyour head
Dialogue: 0,0:01:28.95,0:01:33.47,Default,,0000,0000,0000,,and a hard floor under your feet. Most of\Nour ancestors with the huts with dirt
Dialogue: 0,0:01:33.47,0:01:35.12,Default,,0000,0000,0000,,floors and thatched roofs.
Dialogue: 0,0:01:35.12,0:01:38.21,Default,,0000,0000,0000,,Everything was infested with insects and\Nrodents.
Dialogue: 0,0:01:38.21,0:01:42.18,Default,,0000,0000,0000,,Streets and alleys were open sewers.\NThere were none of these.
Dialogue: 0,0:01:42.18,0:01:45.71,Default,,0000,0000,0000,,The filt was horrible and often toxic
Dialogue: 0,0:01:45.71,0:01:49.95,Default,,0000,0000,0000,,Our ancestors ate gruel and wore the same\Nhome-made underwear
Dialogue: 0,0:01:49.95,0:01:54.52,Default,,0000,0000,0000,,over and over. Now even the least\Nfortunate Americans
Dialogue: 0,0:01:54.52,0:01:57.90,Default,,0000,0000,0000,,typically have electricity running water\Ntoilets
Dialogue: 0,0:01:57.90,0:02:01.20,Default,,0000,0000,0000,,refrigerators televisions and yes cheap
Dialogue: 0,0:02:01.20,0:02:06.12,Default,,0000,0000,0000,,washable underwear. Those of us who live\Nin modern industrial society
Dialogue: 0,0:02:06.12,0:02:09.95,Default,,0000,0000,0000,,are incredibly, amazingly, off the charts\Nrich
Dialogue: 0,0:02:09.95,0:02:14.35,Default,,0000,0000,0000,,compared to our ancestors and here's yet\Nanother huge difference between us
Dialogue: 0,0:02:14.35,0:02:18.37,Default,,0000,0000,0000,,and our ancestors. Before the Industrial\NRevolution
Dialogue: 0,0:02:18.37,0:02:22.10,Default,,0000,0000,0000,,people knew how to make from scratch many\Nother things they consumed.
Dialogue: 0,0:02:22.10,0:02:25.37,Default,,0000,0000,0000,,They made a lot of their own clothing\Ngrew most to their own food
Dialogue: 0,0:02:25.37,0:02:28.42,Default,,0000,0000,0000,,and build their own dwellings.
Dialogue: 0,0:02:28.42,0:02:31.16,Default,,0000,0000,0000,,Fast forward to today and believe it or\Nnot
Dialogue: 0,0:02:31.16,0:02:35.45,Default,,0000,0000,0000,,none of us is a hint how to make the\Nmajority of the things that we consume.
Dialogue: 0,0:02:35.45,0:02:39.62,Default,,0000,0000,0000,,Just getting ready in the morning\Ninvolves taking many trips around the
Dialogue: 0,0:02:39.62,0:02:40.43,Default,,0000,0000,0000,,globe.
Dialogue: 0,0:02:40.43,0:02:44.84,Default,,0000,0000,0000,,Take this coffee for example beans come\Nfrom
Dialogue: 0,0:02:44.84,0:02:48.67,Default,,0000,0000,0000,,Guatemala and they were brewed in this\Ncoffeemaker from Switzerland.
Dialogue: 0,0:02:48.67,0:02:52.26,Default,,0000,0000,0000,,The container ship that carried the\Nbeans was built in Korea.
Dialogue: 0,0:02:52.26,0:02:56.46,Default,,0000,0000,0000,,It's insured by a company from London and\Nit's captained by Frenchman
Dialogue: 0,0:02:56.46,0:03:00.02,Default,,0000,0000,0000,,who loves Turkish cigarettes. We've\Ntransitioned
Dialogue: 0,0:03:00.02,0:03:03.43,Default,,0000,0000,0000,,from each of us doing many things to each of us doing one thing.
Dialogue: 0,0:03:03.43,0:03:07.54,Default,,0000,0000,0000,,Having a job only makes sense in a modern\Nworld
Dialogue: 0,0:03:07.54,0:03:11.36,Default,,0000,0000,0000,,where each individual typically does only\None type of work.
Dialogue: 0,0:03:11.36,0:03:14.86,Default,,0000,0000,0000,,So while we mostly only produce one\Nthing
Dialogue: 0,0:03:14.86,0:03:19.26,Default,,0000,0000,0000,,doing one job each of us now consumes a\Nwhole bunch of products
Dialogue: 0,0:03:19.26,0:03:23.58,Default,,0000,0000,0000,,that require a whole bunch of jobs to\Nproduce.
Dialogue: 0,0:03:23.58,0:03:27.04,Default,,0000,0000,0000,,The question where prosperity comes from\Nlaunched the field of economics.
Dialogue: 0,0:03:27.04,0:03:30.59,Default,,0000,0000,0000,,It's why Adam Smith wrote the first book\Nin modern economics.
Dialogue: 0,0:03:30.59,0:03:34.84,Default,,0000,0000,0000,,An inquiry into the nature and causes of\NThe Wealth of Nations.
Dialogue: 0,0:03:34.84,0:03:38.16,Default,,0000,0000,0000,,Back in 1776 when he published it
Dialogue: 0,0:03:38.16,0:03:41.69,Default,,0000,0000,0000,,Smith was trying to understand the\Ncauses of modern prosperity that were
Dialogue: 0,0:03:41.69,0:03:42.89,Default,,0000,0000,0000,,just starting to appear.
Dialogue: 0,0:03:42.89,0:03:46.94,Default,,0000,0000,0000,,Poverty and starvation were still normal as\Nthey had been from the beginning
Dialogue: 0,0:03:46.94,0:03:50.17,Default,,0000,0000,0000,,but in the late 18th century for the\Nfirst time ever
Dialogue: 0,0:03:50.17,0:03:53.45,Default,,0000,0000,0000,,the masses began to enjoy riches once\Nreserved
Dialogue: 0,0:03:53.45,0:03:57.82,Default,,0000,0000,0000,,only for the nobility. It is this mass\Nprosperity that Adam Smith
Dialogue: 0,0:03:57.82,0:04:02.81,Default,,0000,0000,0000,,sought to explain. Why was it happening?\NWhat was causing wealth to move from being
Dialogue: 0,0:04:02.81,0:04:03.72,Default,,0000,0000,0000,,the exception
Dialogue: 0,0:04:03.72,0:04:08.11,Default,,0000,0000,0000,,to being the norm. Now look around try to\Nfigure out what causes poverty
Dialogue: 0,0:04:08.11,0:04:12.39,Default,,0000,0000,0000,,instead of what causes prosperity. You are\Nwatching
Dialogue: 0,0:04:12.39,0:04:16.08,Default,,0000,0000,0000,,Everyday Economics, a course where we use the\Nlens of Economics
Dialogue: 0,0:04:16.08,0:04:19.62,Default,,0000,0000,0000,,to explore everyday questions. This\Nsection is about
Dialogue: 0,0:04:19.62,0:04:24.29,Default,,0000,0000,0000,,trade. In the upcoming videos we will attempt\Nto explain how trade
Dialogue: 0,0:04:24.29,0:04:29.11,Default,,0000,0000,0000,,plays a role in our prosperity. You also\Nget to decide where the course goes.
Dialogue: 0,0:04:29.11,0:04:32.51,Default,,0000,0000,0000,,Maybe you have some questions related to\Ntrade that you've wondered about.
Dialogue: 0,0:04:32.51,0:04:39.51,Default,,0000,0000,0000,,We'll cover the basics and then you tell\Nus what topics come next.
Dialogue: 0,0:04:46.79,0:04:47.04,Default,,0000,0000,0000,,