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GDP — Transcript

by Andrew Johnson · 7,439 words · 1,138 segments · language en · Watch on YouTube

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0:02hello and welcome back now we get to
0:05learn some words Le words so you're I
0:08know you're chomping the bit what's my
0:09first word so let's get going your first
0:13word is
0:14[Music]
0:18GDP
0:20GDP so let's pull this thing up
0:24here there you go GDP GDP stands for
0:28gross domestic
0:30product gross domestic product gross
0:33domestic product is a sum of goods and
0:35services produced by a country at home
0:38it kind of looks like every country is
0:41its own Factory and which factory makes
0:44what that's what gets the GDP right so
0:49Toyota Prius used to have a Toyota Prius
0:52actually still do but long story on that
0:53one Toyota Prius Toyota Prius is made in
0:57Japan so that goes under Japan P's
1:02GDP used to have a Toyota Tundra Toyota
1:05Tundra is built was built in United
1:08States I think my my truck was built in
1:10Indiana yeah so that would go under the
1:13United States
1:15GDP so GDP measures all the stuff goods
1:20and services produced by a country
1:24domestically which means at home
1:33so what country produces the most stuff
1:38what country produces way more stuff
1:41than any other country in the world and
1:44you say everybody says China China
1:46produces more
1:48stuff nope China is not in fact this one
1:53country has the highest GDP in the world
1:56by far I mean so far beyond any of the
2:00countries this one country produces more
2:03stuff than is produced in Japan Eastern
2:07Europe and the former Soviet
2:10Union
2:11combined now think about that one
2:14country and it's not China One country
2:17produces more stuff than Japan Eastern
2:21Europe and the former Soviet Union
2:26combined
2:27wow what country could that
2:31[Music]
2:36interesting what country could that be
2:38it's the United States no this isn't
2:41United States no no no no no no this the
2:44United States produces the most stuff in
2:45the world by far right by far say I
2:48don't believe you Andy I think it's
2:50China well you can think what you want
2:52to think but it is it isn't you don't
2:54believe me do you believe the World Bank
2:56do you believe the United Nations and do
2:58you believe the IMF
3:00those are pretty standard so let's click
3:03on
3:04here and see what
3:06happens Andy that's Wikipedia that
3:10you're not supposed to use Wikipedia
3:12okay stop stop Slow Down slow down first
3:14off can we agree that Wikipedia does
3:18provide some useful
3:19information okay is it perfect no right
3:23doesn't have it yes also Wikipedia has
3:26there's two types of sources there's
3:28primary and secondary sources right
3:30I don't care about all this stuff here
3:33where they're telling me about all this
3:34stuff but let's look at the sources of
3:37their
3:37information and this comes from the
3:40IMF the World Bank and the United
3:46Nations so let's see what country is
3:49number one all three of them are wait
3:53United
3:54States United States is number one who's
3:57number two well the European Union H
4:02that's kind of tough is the European
4:04Union a
4:06country
4:08kinda um it's a country but it's kind of
4:13not a country it's kind of a it's we'll
4:15talk about the EU yeah yeah yeah because
4:17it's really interesting but is it really
4:20a country if you want to call it a
4:22country you can and then it's number two
4:25but the World Bank and the United
4:26Nations don't consider it a country so
4:31goes to China number two now look at the
4:34difference between the United States and
4:37China big difference isn't it yeah yeah
4:41yeah yeah now one the thing your
4:43questions you probably have is well Andy
4:45that data looks a little old to me what
4:48about current data why don't you have
4:50the current data on there well they they
4:53don't give you current data if you go to
4:55those sources it always takes them a
4:57while to compile to figure this out in
5:00fact sometimes you'll go back and if if
5:02you look at
5:042018 for
5:06instance two years from now you go back
5:08to 2018 and some of these numbers will
5:10have changed a little bit right they go
5:13back and they change so one thing is
5:14China sometimes says oh well we forgot
5:17to include this in our GDP reports okay
5:20yeah we do that too everybody change so
5:22it's it's kind of inflex but it it also
5:24takes them a while to figure out so just
5:26because it's 2018 and 2019
5:30it that it's been locked in this way
5:32forever and ever this is the ranking
5:34it's been for forever has been this
5:37ranking okay number three is
5:41Japan and Japan what do you notice
5:43something they all kind of agree pretty
5:46much don't they yeah okay maybe here
5:49India and UK could that be a change from
5:53the from the year or could that be in a
5:56way of calculating it or what we don't
5:58know right but they're all pretty they
6:01pretty much agree straight down there
6:03don't they it might be a little bit of a
6:05difference but everybody's pretty much
6:06agree so United States has the highest
6:09GDP in the
6:10world
6:13period you
6:15see but everything I see comes from
6:18China everything I'm looking around it's
6:22Chinese right you wake up in the morning
6:24that alarm clock
6:27goes it drives you crazy and you go H
6:31that alarm clock and you hit the alarm
6:32clock and you shut it off it's just made
6:34in China you go ah that Chinese alarm
6:37clock woke me up everything's Chinese no
6:41no
6:43no if you look
6:45at your stuff we get a lot of consumer
6:51goods consumer goods come from China
6:54absolutely right so my house is made out
6:56of logs right if you come to my house
6:59you are not going to
7:01say whoa look at those Canadian L they
7:06came from Canada now look at those
7:08Canadian logs right that table here this
7:11table we have right here that probably
7:14came from Canada too and you're not
7:15going to
7:17go a lovely Canadian wood you don't
7:20notice it right but when you see the
7:22alarm clock and it says made in China
7:24you're going ah H it's what the Chinese
7:28everything's ch it's not right more
7:31stuff comes from the United States than
7:33anybody else but Andy I
7:36heard that China surpassed the United
7:39States on
7:42GDP they did and they didn't so let me
7:46explain that one to
7:54you come on computer there it goes so
7:57this is world ranking of GDP in
8:012019 okay now here's a here's a good
8:04good chart right here okay it say GDP in
8:07curent prices and GDP based on PPP
8:10valuation okay okay ignore the one on
8:13the right for now right just stay over
8:16here in
8:18GDP so if you look these numbers are
8:20real
8:22similar to these numbers aren't they 14
8:25and 21
8:281421
8:301320 right so they're real close 1421
8:34right so these are all this is the this
8:36is the way we have calculated it forever
8:39so this way is if you take the value of
8:42GDP from a country convert it into US
8:45dollars how much stuff is that worth in
8:51the international
8:53market okay so it's going to be less if
8:55you go to places where everything's
8:57really expensive like Norway and
8:58Switzerland it's going to be worth a lot
9:00more in places like China and Vietnam
9:04okay so this is the way it has been done
9:07forever and ever as long as you can go
9:09back and find GDP this is how that's
9:12been calculated okay
9:15but if you want to calculate it weird
9:19you say calculate it weird that's poor
9:21grammar yeah and it's a poor way to
9:23calculate it nobody does this but you
9:25can everybody you can make numbers look
9:28however you want to make them look okay
9:30so this is GDP based on PPP PPP stands
9:35for purchasing power parody it stands
9:37for buying power how much stuff you can
9:39buy so if you take the GDP of a country
9:44and convert it
9:46into International dollars which by the
9:49way there's no such thing as
9:51International dollars so an
9:53international
9:54dollar is the
9:56value of a i always get this kind of
10:00wrong because it's it's so silly it's
10:02the value of a US
10:05dollar back in the year
10:092000 and then they turn that into
10:12PPP which is purchasing power parity
10:15which is the buying power within their
10:18domestic country
10:21so if you take all the stuff that China
10:26produces convert that into International
10:29dollar which don't exist but let's
10:31pretend they do then if you look to see
10:34how much those International dollars can
10:36buy in their home
10:39country that gives us this second list
10:42so I love going to China China's a lot
10:45of fun right and one of the things I do
10:47when I go to China is I buy a lot of
10:49stuff because everything's cheap so I
10:52went to my uh uh wife's
10:54Village uh she comes from a little tiny
10:58village right in South Central China
11:00near
11:00changa so go we go to this little
11:03village and I said I'm hungry let's go
11:05get some food and we got a bowl soup
11:08right noodle soup you guys know what a
11:10bow soup is right it's got meat noodles
11:12and veggies and all sorts of stuff it's
11:13big bow soup this right in Belle how
11:17much would that bowl of soup
11:19cost uh2 $15 right right it's cost about
11:23a
11:25buck yeah and it was a darn good bowl
11:28soup too and wasn't I'm not talking
11:30about just a little bit this was really
11:33oh man I can't I want to keep eating it
11:35was so good and it it totally filled me
11:38up so your purchasing power parody your
11:41buying power goes up in China doesn't it
11:47see now one other place I've been to
11:49which is crazy stuff stuff is just crazy
11:51cheap is
11:53India so India India stuff is really
11:57really cheap and so I went to India and
12:01everything's really really cheap that's
12:02why they're here now let's see over here
12:04see they produce a lot of stuff they're
12:06up here but the stuff is cheaper so
12:08that's why these numbers are kind of
12:11kind of off they're they're weird right
12:15because see it says if you notice that
12:16that that the United States number
12:1921439
12:2321439 okay so this is a way to determine
12:29PPP nobody uses it this is
12:32nonstandard but if you wanted to come up
12:34with your own
12:36special super secret way to measure
12:40GDP which we've never done but if you
12:43want to then you'd see that you can say
12:46that China's GDP has surpass
12:51un but it really
12:57hasn't so
13:00how can the United States produce so
13:02much
13:03stuff how do we do it well let's look at
13:06worker
13:07productivity let's see how much people
13:12produce most
13:14productive countries in the
13:16world Luxembourg is number one they make
13:19the highest GDP per person you I mean
13:22they pry purpose they're just they
13:24really knock it out you ever been to
13:27Luxembourg been there so beautiful
13:30beautiful castle City on top of a
13:33mountain yeah it's it's beautiful and
13:37everybody walks around in a suit because
13:40they're all
13:42Bankers oh yeah it's it's I I think
13:46Tacoma has more people right can you
13:49really compare Tacoma and China no it
13:52doesn't work that way okay Ireland okay
13:55this date is a little bit older it's
13:572015 you'll know it if you find a little
14:00bit more current information you'll see
14:01that Ireland has dropped a little bit on
14:04that way Norway Norway has taken over
14:07right Norway is is way up there because
14:09of oil Norway has huge oil reserves and
14:13you know what Norway is always number
14:16one or number two in the world for
14:20Teslas people in Norway Drive
14:23Teslas yeah right wait an oil rich
14:26country and they drive electric cars
14:29yeah because they're actually making
14:31money by driving electric cars you know
14:33you can actually find Tesla
14:36taxis I was in Norway just two years ago
14:39they're Tesla taxis right to give you an
14:42idea how many T because they're selling
14:44their oil and they're using their
14:46electricity to run their cars and that's
14:48why they're rich and that's why their
14:50GDP is so high okay but still it's not
14:55even 3 million people right so we have
14:59cities with way more people than Norway
15:02so you can't really compare Okay Belgium
15:05Belgium's getting up there yeah know but
15:07it's four million people that's can you
15:11compare four million people with 1.4
15:14billion people no it's that's not a fair
15:17number United States okay now we're
15:19starting to get up 151 these are workers
15:22right so if you're not working this
15:25doesn't count right um but so we're a
15:28big country
15:30we're Big Country right we'll see where
15:33we are later on but we're pretty big and
15:36our workers are very productive we work
15:39a lot of hours too so not only are we
15:42very productive we work a lot of hours
15:44those Bankers in Luxembourg they go to
15:47all these nice restaurants and oh it's a
15:49beautiful place you'd love going there
15:51but they're not working like we are now
15:54look at the United States 33 nobody else
15:56on this top 10
15:59is up there so we work the
16:01longest and we're very very
16:06efficient now where wait wait where's
16:11China where's
16:14China where's
16:16China where's China wait China they
16:20produce a lot of stuff where's
16:22China they didn't even make the
16:26list because Chinese workers are not as
16:29efficient as American workers not I'm
16:31not saying hard workers they work real
16:33hard right I'm saying they're not as
16:36efficient as American
16:40workers yeah so let's go back
16:44so let's look at this one
16:48productivity now wait how can China
16:51they're not very efficient workers yet
16:55their productivity is number two however
16:57you do it it's number two
16:59what's going on there well let's look at
17:02this this chart Wikipedia gets shut up
17:05don't come on okay this comes from the
17:08United Nations right China population
17:121.4 billion actually this number is not
17:14quite accurate um uh but they have a lot
17:19of people right even though their
17:21workers are not as efficient as American
17:24workers they have a lot of people right
17:26they have a lot of people India so them
17:29they're they're way up there too aren't
17:31they yeah they they have a lot of people
17:33right they're not very productive but
17:36they have a lot of people United States
17:39we're number three we're the third
17:41biggest country in the world right so we
17:44have a lot of people and our workers are
17:46very very
17:48efficient and you can so this gives you
17:52a list of all the populations so if you
17:56look
17:57at how many people they have and even
18:00though they're not very very productive
18:02they got a lot of people so they produce
18:03more
18:05stuff
18:07yeah so how does the United States make
18:11so much stuff right like first off I see
18:15Chinese stuff all the time right when
18:17you eat a hamburger do you see made in
18:19America label on there people say well
18:23it's not America it's the United States
18:24of America some people you you travel
18:26around the world and I say I say I'm an
18:28American they go you're not American
18:29we're Americans here too okay my name is
18:32Andy Johnson am I a
18:36Johnson yeah can I say I'm a
18:39Johnson yep can you argue that I'm a
18:41Johnson no the name Johnson is in there
18:44right so people from People's Republic
18:47of China are they
18:50Chinese yes but wait isn't Taiwan China
18:55too and they can say that so it
18:59yeah it gets kind of weird Okay so but
19:02America United States most productive
19:06workers in the world not the hardest
19:08workers the most productive and how do
19:11we do this the answer is my
19:14dad you say your dad my dad who's your
19:18dad well John Johnson it really was his
19:21name John Johnson can you believe that
19:24guess what my brother's name was John
19:27Johnson guess what my grand
19:28grandfather's name was give you a hint
19:30starts with a j John Johnson guess what
19:33my greata grandfather's name was John
19:36Johnson we're not a very creative
19:38family we're we're not yep so who's your
19:43dad here's a picture of my
19:46dad he's a
19:49farmer a farmer Now by Nebraska
19:53standards he was considered a smalltime
19:56farmer you see this combine right the
19:59he's standing in front of his combat by
20:00the way he's two inches taller than I am
20:02I'm I'm six feet tall he was 6'2 right
20:05so he's he's big guy big guy right this
20:08is he's sitting in front of his combine
20:11this isn't a rental combine this isn't a
20:14company combine this is his combine
20:18right I bet it's bigger than some
20:20people's
20:22apartments in fact I know it's bigger
20:24than a lot of
20:25people's yeah yeah this was his
20:29very efficient worker right so United
20:32States we're very productive because our
20:34farmers are so efficient we're we're
20:36efficient in lots of ways but our
20:38farmers are make us very very efficient
20:41he's a smalltime farmer but just to give
20:43you an idea how big this Farm is if
20:45you've ever been to Nebraska you'll know
20:47that it's flat it's laser scary flat I
20:51mean you don't see anything it's just
20:53like it's like God just scraped off the
20:56scraped everything off and left it flat
20:59okay so one of his
21:01Fields I can stand on one corner of the
21:04field and I can wave at my dad my dad
21:07could stand on the other corner of the
21:09field and wave at me and we can't see
21:12each other because the curve of the
21:14earth blocks The View but think about
21:17that the curve of the Earth right that
21:21was one of his Fields right he has two
21:23fields that was one of his Fields right
21:25he's considered to be a smalltime farmer
21:28by Nebraska
21:31standards how many people do you think
21:33he
21:34feeds I mean think about it how many
21:37people does he
21:39feed a lot can we all agree a
21:44lot so he's he's he's got his for here's
21:47his tractor there's me with hair say
21:49told you he used to have hair there's me
21:52with hair right and this is in front of
21:54his tractor this is his tractor it's not
21:56the company tractor and he's a small
21:58small farmer right now he's very
22:01productive but he doesn't work very hard
22:04so here's what he does on his days right
22:07he climbs up into his tractor that's
22:09about the hardest thing he's going to do
22:10all day right climbs into his tractor he
22:13drives a tractor or combine out to the
22:15field and he presses a button and that
22:19button turns on the
22:20GPS and it drives the tractor for him so
22:25now he's sitting
22:27there going across the field he says you
22:31know what I'm getting a little warm I'm
22:33G to turn the air conditioner up a
22:34little
22:36bit no I'm getting hungry I haven't had
22:40much to eat today so pulls out his
22:42breakfast spreads out a big Buffet right
22:45and he's
22:47eating looking
22:49around okay then he finally he gets to
22:52the other end of that monster field that
22:54we know about right right he he turns
22:57the GPS off he presses a button he turns
23:00the tractor around turns the GPS back on
23:04again and now it goes so now he finishes
23:07his breakfast he says okay that was a
23:08nice
23:09meal what should I do now I know I'm
23:13gonna watch a movie so he pulls
23:16out his laptop right opens it up
23:21watching a movie I G watch it I don't
23:23know what movie he's going to watch he's
23:25watching a movie right then he gets to
23:27the end of the the the field again he
23:29says oh darn it I got to press pause he
23:33presses pause turns his tract around
23:35hits the GPS again he watches the the
23:38rest is he working very
23:40hard no but how many people is he
23:43feeding Lots so he grew corn that was
23:47his big thing it's corn my father-in-law
23:49is also a corn farmer and I've been to
23:52his
23:53farm been to his farm uh it's very
23:56different see one of the things you see
23:58in um uh in China is you see all of
24:03these there's something in Chinese
24:06Fields you just do not see in American
24:07Fields it's very very different you see
24:11people they're people I mean there's you
24:14drive through China you see people out
24:16in the field right so my father-in-law
24:19grows
24:20corn and the tools he uses he was born
24:25with his hands right so been his farm in
24:28his house the technology he has for his
24:33house is his hand tools like shovels and
24:37rakes and things like that he has one
24:40light bulb and a cell phone that's it
24:46nothing he's out there every day working
24:49the fields with his hands pulling stuff
24:52up my dad is eating breakfast watching a
24:56movie who's working harder
24:59of course my father-in-law's working way
25:01harder than my dad ever did right but
25:04who's feeding more
25:06people my dad's feeding a lot more
25:09people so United States Our Workers are
25:12just much more efficient than others so
25:14I was in um a place called Chongqing
25:16China and I watched them unloading a
25:19truck full of
25:21coal so they're unloading this this this
25:25this they're they're unloading the truck
25:28and they're taking the coal and they're
25:29putting it on a river barge on the yangs
25:31river okay to unload it they basically
25:35had about 40 men each men had two white
25:40buckets they would jump into the back of
25:42the truck fill up their buckets with
25:44Co jump out of the truck walk down the
25:49bank To Where the River is then there's
25:53a boat sitting in the river a barge
25:56right they take their buckets they throw
25:59the coal into the into the
26:03the boat right and of course some of it
26:06goes in the water some of it goes in the
26:08air right and then they go back and do
26:10it again and so you just got 40 men just
26:12going crazy unloading this truck
26:16okay in the United States how many
26:19people would that take to unload that
26:23truck two how long would it
26:27take 10
26:29minutes yeah very inefficient doesn't
26:32mean they're working hard very
26:34inefficient so I was in uh Tibet l City
26:38Tibet beautiful beautiful beautiful
26:41place so I'm in Tibet and I'm staying
26:44across the the uh I'm staying this hotel
26:47and the the hotel across the street
26:49there tearing it
26:51down and I was in l City for about two
26:56weeks uh they were working day and night
27:00tearing that thing down the tools they
27:02were using were picks shovels and burlap
27:08bags that was it pics shovels burlap
27:13nothing else no jackhammers no
27:15bulldozers nothing right and I watched
27:18them work day and night and day and
27:20night and day and night and they you you
27:24could see some after a couple weeks you
27:26could see some work some Pro ress but
27:28not
27:30much in United States how long would it
27:34take to tear down that building the
27:35building was about the size of one of
27:37our buildings in at Belia College one
27:39the new
27:40ones maybe a couple days right because
27:44we have we use Dynamite or we'd have
27:46bulldozers and cranes and all sorts of
27:48stuff right so the Chinese worker is not
27:51as
27:52efficient okay now that being said the
27:56Chinese worker is getting much more more
27:58efficient than they used to be and
28:00they're getting more and more and more
28:03efficient so their
28:06productivity is going
28:08up so here's here's some workers in
28:11China see they're out there working that
28:14field and my
28:17dad's sitting in his tractor eating
28:21lunch watching
28:24movies yeah
28:26productivity yeah yeah
28:29so the
28:31Chinese I gone through all these haven't
28:33I
28:37okay you see they're unloading this
28:39truck there and here this is they're
28:41they're tearing something down
28:43here yeah so China's
28:48GDP is going up right and China is
28:52getting the workers are becoming much
28:55more
28:56efficient and
28:58China's
29:00GDP gross domestic
29:03product China's GDP will surpass the
29:07United States it's going to happen right
29:10because they have so many more people
29:12and all you need is a few more people
29:14and wow wow
29:16wow okay yeah so their GDP is gonna and
29:20you hear people say oh it's bad you'll
29:24hear on television you'll see these guys
29:26on television they say oh China's GDP is
29:29going to pass the United States and it's
29:32a bad thing because pretty soon China's
29:35going to take over the world because
29:37their GDP is gonna pass the United
29:39States so it is going to happen right
29:41nobody denies it no no nobody says
29:44China's GDP will not surpass the United
29:46States everybody says it right but the
29:49people say oh it's terrible because now
29:51China will no no no no first off it's a
29:56good thing that their GDP Sur pass it's
29:58United States what I thought it was a
30:00bad thing you thought wrong it's a good
30:02thing first off this class we don't care
30:06about
30:08stuff I don't care about stuff what are
30:11we learning about in this class say it
30:16say it money right we're worrying we're
30:20learning about money which would you
30:23rather
30:25have a ton of Toothpick
30:29that's worth maybe a million dollar or a
30:31million
30:33dollar what are you going to do with a
30:35Million worth of toothpicks I mean sell
30:38them you're not GNA get a million
30:39dollars for them I'd rather have the
30:42million dollars yeah so this class we
30:45care about
30:47money money so money is measured by
30:52something called gni there's your next
30:54word for you
30:56gni g I stands for gross national income
31:03now if you look at some data sources
31:05from before the year 2000 you will see
31:08it instead of gni it's GNP gross
31:10national product gni and
31:13GNP both measure money who gets the
31:18money right they just calculated in 2000
31:20they started calculating it slightly
31:23differently so if you look at a chart
31:25you'll see that the for a gni for a
31:27country you'll see all of a sudden 2000
31:29has a little blip right because they
31:31started calculating differently because
31:33of international business right so if a
31:37can a company be in more than one
31:39country yeah right so that's why they
31:41went with gni so who gets the money so I
31:45bought a Toyota
31:46Prius Toyota Prius built in Japan goes
31:51under Japan's GDP gross domestic product
31:55but
31:56Toyota is a Japanese company so
32:00Toyota goes under
32:03Japan's gross national income okay
32:08bought a tundra tundra is built in the
32:10United States that goes under United
32:12States GDP gross domestic product but
32:16the tundra is owned by Toyota and Toyota
32:20is a Japanese company so that means that
32:23that would go under Japan's gross
32:25national income so who makes the money
32:28who gets the money in the
32:32end so if you look at how much money
32:35you're making every year so you have to
32:36pay taxes W lot of fun on that right and
32:40you fill out your tax statement it says
32:41here's what my gni was last
32:45year so you can by the way do you know
32:48you can uh if you Google it you can find
32:50any college teachers
32:52gni you can help find our our our gross
32:57naal income our personal income it's
33:00it's it's public knowledge okay because
33:02we're state employees and all state
33:04employees if you ever see a state
33:05employe you can find out how much they
33:07make every year okay so g& Majors who
33:11gets the
33:12money so what country do you think has
33:17the highest gni what
33:21country makes the most
33:24money in the world
33:32now if I'm looking at this slide and it
33:35says what country has the highest gni in
33:38the world you look at that chart if look
33:42at that slide carefully you'll see that
33:44there's a hint on what country makes the
33:48most money and to find this out let's
33:53look at the World Bank Banks know about
33:55money right so let's ask the World Bank
33:59where we are what country has the
34:03highest
34:07dni
34:09but United States number one by far by
34:14far by far China number two okay that's
34:18that's pretty good right and Japan's
34:20number three wait so United States we're
34:22the richest country in the world by far
34:25Andy we're not rich we are the Jeff
34:28Bezos of the world no we're not we're
34:30not rich yeah we are no Andy you don't
34:34know me I'm poor did you get enough food
34:36to eat
34:38today do you have running
34:42water you have indoor
34:45toilets lots of people
34:47don't so we're rich okay so wait wait
34:51China is number two I thought China was
34:53a fairly poor country they
34:55are wait how can the second richest
34:59country in the
35:01world be a poor country or middle poor
35:05they're not dirt poor but they're not
35:08that's doesn't have the wealth of Norway
35:11right where's Norway on the
35:13list I don't see Norway where's
35:17Norway yeah I don't see it
35:20where's where are any of those big
35:22countries that we looked at the previous
35:24one remember the previous slide
35:28yeah there's Norway number
35:3027 wait 27 yeah yeah and look look at
35:34the difference between
35:36Norway's
35:37441 to our
35:3921,000
35:4122,000 billion trillion gazillion
35:45dollars wow that's a big difference
35:47there yeah it's a it's a real big
35:50difference then how can China
35:52be
35:54so wealthy well think of the this way if
35:58you live in Belle
36:01Washington can you live in Belleview
36:03Washington a comfortable life on
36:04$100,000 a year sure you can get a nice
36:08apartment and a decent decent car yeah
36:11you're you're fine on 100,000 what if
36:12you have 20
36:16[Music]
36:19children
36:20population yeah so that's what drops
36:23them down drops them back down okay well
36:27let's go back to
36:29population what was a
36:39population where's the
36:41population productivity here's
36:46population so we look at population
36:49China has 1.4 billion actually this
36:52number is not quite so
36:55accurate okay China uh does have 1.4 but
36:59the number is actually higher what's the
37:01real number nobody knows but we know
37:03that this number
37:05is artificially lower than it really is
37:09right there's more people why why they
37:11don't they know how many people they
37:12have not really so China used to have a
37:16policy called the one child policy
37:17everybody's familiar with the one child
37:19policy right right now they're they're
37:21doing away with it
37:24uh so everybody they say you can only
37:26have one child okay so people say well
37:29what happens if you have a second child
37:31do they kill the second
37:34child okay maybe some weirdos kill kids
37:38but that doesn't happen and very often
37:40do weirdos in the United States kill
37:41kids too yeah the weirdos all over the
37:44planet kill
37:45kids yeah but no they don't kill their
37:48kids right so what can happen is you
37:50either would have to pay a fine if you
37:52had more than one kid or you might be
37:55have to lose your job right but that's
37:59pretty much what happens right also that
38:02the the one kid policy the one child
38:03policy was only for the ethnic majority
38:05of the Han right so my wife is tuja
38:09which is the ethnic minority she's
38:12number six she has five brothers and
38:14sisters so what they did and there also
38:17a farmer so they said hey if you're a
38:20farmer and you start to have girls you
38:23can keep going till you get a boy
38:26because you need the boy to work on F
38:28that was the idea so girl girl girl
38:34boy no wait girl girl girl
38:37girl boy my wife she was an oopsy yep so
38:43they had to pay a fine for her that's
38:46but so six six people and this was all
38:49during the one child policy so there
38:52goes that concept also what would happen
38:54though is sometimes if you had more than
38:57one kid you would hide the kid they did
39:01they just hit them these kids just went
39:03away you so when the census tier comes
39:06to your village you send them over to
39:08your aunt or grandpa or something like
39:10that they're just so they're not
39:11official people and we know this for
39:14sure because they had this big
39:17earthquake in China in a in a city
39:19called chungu chungu is a really neat
39:22City if you've ever seen a picture of a
39:24panda in China it probably came that
39:27picture was probably in chungu and I've
39:29been to the panda reserves in chungu and
39:31they're really it's gorgeous it's really
39:33it's a neat city right so the problem
39:36though with chungu is in a mountainous
39:38area that's prone to
39:41earthquakes
39:43so they had a big bad terrible
39:47earthquake in chungu caused one of the
39:51schools to collapse and it killed all
39:54the
39:55kids okay so now their parents were
40:00upset on multiple levels right so first
40:02off they lost their kid right which is B
40:04plus they couldn't have a second kid
40:07right so now their only kid their
40:09family's gone and they're saying well we
40:11don't have so the government said
40:15look yeah that's not fair we agree so if
40:19you have a second child in
40:23hiding that kid can now become
40:28your official
40:29kit and can go to school and take get
40:32all the benefits that your first
40:34official kid get and all a sudden kids
40:36just swarmed in to Chung new from all
40:38over China because they had been you
40:40know shipped out all over the place and
40:42uh yeah so but there are a lot of people
40:45in China who are not recognized and so
40:49this number is lower than it really
40:51is
40:53India second most populous country in
40:55the world this number is artificially
40:58high so we'll talk about the
41:00relationship between China and India
41:02there it's a it's a strange relationship
41:04between the two countries um whenever
41:07one country does something the other
41:09does it too right so China gets into
41:12space program India gets into the Space
41:14Program China gets into computers India
41:16gets into computers China the largest
41:19populous the most populous country in
41:21the
41:22world they say that that was that's a
41:24mistake they don't want to be the
41:25largest so they're trying to reduce
41:27their population India says no we want
41:29to be number one right so India the
41:33numbers fudge up right so these are
41:36close
41:37but they're not really accurate just so
41:41you'll see these numbers all sorts of
41:43different different reason now India is
41:46going to surpass China on population
41:48they're going
41:50to
41:52Okay so
41:59money gni so United States has the
42:03highest
42:06gni yeah population that's the that's
42:09the the reason they have so many people
42:11you go to China there's just people
42:12everywhere I mean they're out in the
42:14fields they're doing all sorts of stuff
42:15people people people yeah but here's
42:18where it gets more
42:20interesting this is the gni per
42:23person uh right so this
42:27really tells you who's rich and who's
42:32medium and who's poor so let's go to
42:35world bank and see what the gni is per
42:45person Gina don't look at this one
42:48remember International dollars
42:49purchasing power parody this is weird H
42:52can't look over here this is the Atlas
42:54method this is the way that they've
42:56calculated for every so number one is
42:58Switzerland okay Switzer I've been to
43:01Switzerland I was just there last summer
43:05it's beautiful and you walk through
43:07these beautiful little Swiss towns and
43:09you see stores for cardier watches right
43:13so in the United States we say Rolex
43:15watch that's what I want you can get a
43:18Rolex watch for
43:20$10,000 I don't know if you can get a
43:22watch banned for cardier for $10,000
43:24you're talking like $80,000 and you see
43:27these all other place you see Rolex see
43:29all sorts of stuff it's like wow it's
43:31it's wealthy Norway the land of the
43:34Tesla number two oil now usually when a
43:38country gets
43:40oil it actually causes the gni to go
43:42down because it makes the rich richer
43:44and the poor poor and the gni per person
43:46goes down right and it's usually
43:48terrible Norway said no no no no no
43:51we're going to
43:53share everybody gets part of the profit
43:57so everybody gets Rich well if everybody
43:59if they're producing all this oil and by
44:02the way the cost for them to produce oil
44:04is almost nothing it's like $2 a barrel
44:09and a lot of places $30 a barrel is
44:12considered pretty good so they're
44:13they're they're just rolling in the
44:15money right but at the same time not too
44:17many people in Switzerland Switzerland
44:19isn't really a country either it's kind
44:21of like four regions that got together
44:23they don't have the same language it's
44:25it's interesting right we'll talk more
44:26about Switzerland later Norway still
44:29it's not very many people maau maau okay
44:34maau it's a little island off of
44:37mainland China where you can go gamble
44:40it's just it's I think it's the only
44:41place in China that you can gamble
44:44legally yeah yeah okay Isle of Man okay
44:48that's a DOT like San Juan Islands it's
44:51like no that can't count okay Luxembourg
44:55come on Luxembourg to Tacoma I don't see
44:58Tacoma on this list so you can't really
45:00put Luxembourg Dar
45:03Iceland I think Belgium has more people
45:05than Iceland yeah that's a DOT now
45:07number seven United States that's not
45:10bad so for a large country like we are
45:15to be number seven because we got a lot
45:16of people that's a lot of
45:19money okay so keep going down where is
45:24China
45:27come on
45:28China where's
45:33China you see
45:35[Music]
45:36China where's China there it is 71 Wy I
45:42saw China up here right I saw Hong Kong
45:45okay that's a special administrative
45:47region that's not Hong Kong is not China
45:49it's part of China but it isn't China
45:51it's kind of like saying Texas is the
45:53United States it's not it's part of the
45:55United States
45:57yeah yeah yeah so China we said is
46:00where's China again 71 71 is not bad
46:05they've been going up up the list pretty
46:07fast right I remember a long time ago
46:09they were way down the list way down the
46:12list where's
46:15India I'll give you a hint it's not up
46:19here where's
46:22India where could India be come on India
46:32did I miss
46:33it I thought it was
46:36like that around here some
46:41place huh where' it Go India come on
46:45where are
46:47you no it's not there there it is 145th
46:52India right that's poor right and you go
46:55to India and you go to I've been all
46:57across India I've been all over
46:59China China is much wealthier than India
47:03you just can't miss it now where do you
47:05not want to be where's the bad place to
47:07be where is life unhappy well all the
47:12all the these places right uh Last
47:15Christmas I was in Madagascar I traveled
47:18through Madagascar I've been to I spent
47:20like 4 days in Madagascar you cannot
47:23miss the poverty right it is not a happy
47:26place right now I had one student I said
47:29down here this is not a happy place to
47:30be right and she says well I'm I'm
47:34offended by that Andy I'm from American
47:37Samoa and American Samoa is a happy
47:40place right well American Samoa isn't
47:43ranked it's a tiny dot they don't
47:46provide the data you can't it's so yeah
47:50it's probably is a happy place but
47:51there's no information on
47:54that right so for the that the World
47:57Bank was able to collect but if you go
47:59to
48:00Madagascar I'm telling you it is not
48:03happy it's it the pollution is just
48:07unbelievable now they has got some
48:09pretty cool cool force and yes I went
48:11into the jungle and I had a lemur jump
48:13on my head and there's some really
48:16beautiful spots in it but if you go to
48:17the cities
48:20like yeah it's it it it brings you down
48:24or it brought me down to my family okay
48:27so gni per
48:29person that's where so United States is
48:32the
48:33highest okay China's gni per person is
48:36about $9,000 and the United States is
48:4160
48:43wow well W well so the average worker
48:45makes 15% of what a US worker makes and
48:50you go there you see that and there are
48:52people yes they're billionaires and I
48:54know some in China
48:57and who live here
48:58in United States but they're
49:01billionaires by far
49:04and yeah and then there's people like my
49:07father-in-law who doesn't have indoor
49:10plumbing or an indoor ouse I mean
49:13there's a huge differential differential
49:16there so so United States we make a lot
49:19of we are the richest country in the
49:20world at
49:22$60,000 per person it's pretty that's a
49:25lot of money
49:27so you
49:29hear they say that China's GDP their
49:33gross domestic product will surpass the
49:37United States GDP and it's going to
49:40happen absolutely it's GNA happen
49:43there's no question nobody's going to
49:45tell you that that's not g to happen but
49:48we don't care about GDP because we care
49:50about
49:52money and we need to know that no no
49:58reasonable Economist nobody out there
50:02says that China's gni will surpass the
50:05United States gni in our
50:08lifetime nobody says that they say wait
50:13it has to no they're not going to
50:16surpass it in fact we want China's
50:20GDP to pass
50:23us what I don't yes you do
50:27because as China's GDP goes up guess
50:32what happens to the United States
50:36gni okay this is data from the IMF once
50:40again right gni of the United States and
50:43gni of
50:46China wait okay so United States we're
50:50going actually we're starting to pick up
50:52even more aren't we we're starting to
50:53get richer okay so what happened with
50:56China China didn't used to trade very
50:58much then about 2000 they started
51:00trading and their GDP the gross domestic
51:03product starts to go up as their
51:07GDP goes
51:09up what that causes their gni to go up
51:12which is nice but what does that do to
51:14our
51:16gni it causes it to go up
51:19too and other
51:21words when China makes more money the
51:25Richer they
51:27get the richer we
51:30get so you watch the watch these crazy
51:33people they say Well they're stealing
51:35our
51:36stuff sure there's we'll talk about uh
51:40intellectual property rights and and yes
51:43they do make some they make some
51:44knockoff stuff we'll talk about that
51:46here but people said they're stealing
51:48our jobs right we don't want we need to
51:50make it here in the United States not
51:52make have it Buy in chared because when
51:54we buy their stuff they're getting our
51:56money
51:57right and we're making them rich and it
51:58makes us poor but wait a second doesn't
52:01the World Bank the IMF do they say that
52:04by buying Chinese products it makes us
52:10richer isn't that weird so in other
52:12words when we buy their stuff it it
52:15helps them
52:16absolutely because I've been been to
52:18China fairly recently I was there like
52:21two years ago I think and then I was
52:23also there in 2000 and trust me
52:27that world has changed the place looks
52:29completely different in in that in just
52:33a few years uh and it's it's improved
52:36their lives but also the gni of the
52:39United States is going up they don't
52:41tell you about that so you watch
52:43television they say GDP and they tell
52:44you oh oh GDP GDP GDP they's going to go
52:47up
52:48and we don't care about GDP care about
52:50gni now how come as China's gni goes up
52:55it pushes our gni up we tell you that
52:59one next video thanks a lot for coming
53:02have a nice day

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