Friday, September 26, 2014

US in a converging world, Hans Rosling on CNN (Fareed Zakaria GPS)

This is several years old, but it is not outdated. The rate of economic growth of the USA and other members of the rich nation's club is limited, while less developed areas with the right conditions and policies can catch up. As Rosling shows in the video, in 1954 the United States (having emerged from World War II almost alone in the industrialized world with its industrial infrastructure intact, and indeed enhanced) had much higher per capita income than any other country. Given the large population of the USA, its GDP was huge as compared with other countries. Note too that this was a time when the European imperial powers were decolonizing. American leaders today grew up in a world in which the U.S. economy was dominant. That is no longer true today, and is likely to be even less true in the future. I think we need to face life in a world in which the European Union and China are comparable economic powers, and then India and other countries will join the club.

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