TTC Video – Foundations of Economic Prosperity
Salepage : TTC Video – Foundations of Economic Prosperity
The world has been altered by prosperity. Prosperity, defined as the ability to acquire goods and services above and beyond basic requirements, is now a way of life for the majority of people in industrialized countries—so normal that few people recognize what a rare and recent occurrence it is.
Only two centuries ago, the vast majority of people lived at or near the brink of poverty, as they did since prehistoric times. Then came the Industrial Revolution, and per capita income skyrocketed. Today, it is still increasing.
However, the tale of prosperity is far from straightforward—or comprehensive. Many people in the industrialized world are concerned that their children will be less wealthy than they are. Meanwhile, emerging economic heavyweights like China and Brazil enjoy year after year of tremendous development and growing living standards. Across the globe, millions of people remain impoverished, despite the best efforts of institutions like the World Bank to assist them out.
Fostering and sustaining economic success at the individual, national, and global levels is a multifaceted activity that extends well beyond economics into the political and social realms. The phenomenon’s complexities pose equally complicated questions:
Why is prosperity so unequally distributed?
Why isn’t the road to success obvious?
What can be done, if anything, to help more people get out of poverty?
Foundations of Economic Prosperity provides an unparalleled overview of one of today’s most critical challenges in 24 half-hour courses presented by Professor Daniel W. Drezner of Tufts University’s distinguished Fletcher School of Law and Diplomacy. Professor Drezner takes you past the headlines and into the arguments to debunk some prevalent prosperity misconceptions and uncover deeper realities.
Professor Drezner demonstrates in this engaging, all-encompassing course that reaching wealth entails more than just economics. Psychology, sociology, political science, and history are also factors. By taking this comprehensive approach, he brings you to basic ideas about how the contemporary world works, as well as a greater grasp of the functioning of the United States, Europe, China, and other major economies, as well as a respect for the unique issues that developing countries face.
Prosperity Mysteries and Myths
Foundations of Economic Prosperity begins with a discussion of fundamental economic ideas. These are then applied to a broader range of issues, including individual, national, and global prosperity. Professor Drezner examines some of the secrets surrounding wealth, noting that it is surprisingly difficult to explain.
Why is it England? The Industrial Revolution began in England, but experts dispute on why, given that other countries were as ripe for change. Was England’s global political status the deciding factor? What about its institutions? According to one argument, the British had a significant advantage due to their different demographic.
The two Koreas’ riddle: Few countries have such disparities in affluence as North and South Korea. Despite this, they share similar natural resources, ethnicity, and culture. Both countries saw surprisingly comparable development rates throughout their first 25 years of existence. What created such a big divergence?
The Easterlin paradox According to economist Richard Easterlin’s disputed findings, there is no association between growing affluence and happiness in the industrialized world. How reliable is this conclusion? Is the effect affected by one’s degree of wealth? How much joy can money buy?
Professor Drezner, in his attempt to discover the principles that underlie the rapid development of material life, debunks generally held beliefs about wealth, including:
Myth—China is affluent: While China is economically dominant, the notion that it is prosperous is incorrect. China is a developing country by various criteria, ranking with Jamaica, Turkmenistan, and Belarus in per capita income, health, education, and other indicators of wealth.
Myth: Character is everything: While individual action is important, people do not have complete influence over their economic fate. National and global conditions are important. Steve Jobs, for example, could not have founded Apple Computer in a country that did not provide educational possibilities or a technological infrastructure.
Myth—Prosperity is self-sustaining: It is a common fallacy that once established, prosperity is self-sustaining. Many variables, from pandemics to financial crises, can derail prosperity. Professor Drezner examines Argentina as a case study of a once-prosperous country that fell into a protracted period of economic ruin.
Failures and Successes
Foundations of Economic Prosperity examines hundreds of case studies to show what works and what doesn’t in the quest to boost economic development. Professor Drezner, a superb storyteller, draws on examples such as Easter Island’s statue-building culture, which flourished centuries ago until its massive public-works effort destroyed the island’s ecosystem—a cautionary tale for all developed societies. Professor Drezner outlines mercantilism, an economic doctrine that imprisoned European countries in growth-killing trading practices from the 16th through 18th century, in another historical lecture.
You will also learn about the following fascinating cases of wealth gained or lost:
Financial bubbles: During the Dutch tulip mania of 1637, the price of a single tulip bulb increased to 45 times Holland’s per capita income. The price quickly fell in a boom/bust scenario that has been repeated numerous times, such as the “dot com” bubble in 1999-2000 and the housing bubble that led to the 2008 financial crisis.
Globalization: The trend toward a more interconnected global economy is not new. The era of globalization that began in the 1850s and ended with World War I saw far more dramatic changes in communication, transportation, productivity growth, and financial innovation than those seen today.
Politics versus prosperity: Following the dissolution of the Soviet Union, many economists predicted that Ukraine would have a prosperous economic future due to its well-educated workforce, heavy industry, and productive farmland. However, Ukraine did not fare well. The mistakes made by its politicians demonstrate the state’s enormous power to make mistakes.
You Can Use These Prosperity Suggestions
How may people profit from long-term patterns in economic development and distribution? Professor Drezner, whose experience includes positions with the US Department of the Treasury and the RAND Corporation, as well as extensive international travel and consulting, has a wealth of knowledge on this topic. He contends that developments since 1980 highlight the growing importance of human capital over physical capital—the value gained from investing in people rather than physical assets. Human capital is the result of all forms of education, from elementary literacy to job training to undergraduate and graduate studies, and it is more important than ever to a person’s economic prospects.
Take this step to invest in an unparalleled explanation of the prerequisites to achieve greater prosperity as a starting point on your own path to greater prosperity in the Foundations of Economic Prosperity.
