So THAT's why we're NOT the richest country in the world! Buttt waiiit, we are the richest country in the world! How do you explain that Tim?
We started becoming the richest country in the world, largely because we where freer than most of the rest of the world. In other words we had less rules, or rules that restricted freedom less. That used to be very strongly true, and that's how we became richest in an total income and wealth, and near the top in per capita income and wealth. (No I'm not saying its the only reason, but its probably the most important one, other than the fact that we are the third most populous country contributing to the total income and wealth part, but out large population is also related to our freedom, with people coming here to be free, and people coming here for the wealth that the freedom allowed them and others to generate.)
Out freedom in both relative and absolute terms has been slipping recently, so we might not stay number one, but such changes (first in freedom, and then in wealth), usually take a long time to take effect, and the countries closest to us are less free. Germany, Japan, France, and the UK, aren't becoming more free. China has been becoming more free, which has allowed for much greater economic growth than it had in the past. It also has the advantage of having richer countries to trade with and learn from, and it has a much larger population (helping in counts of total wealth and income), but I think it will have to free up more if its going to pass us (esp in per capita terms). |
