Class Seven

1.       The world is much richer. The rich got richer, and the poor got better. The prices of products, when compared to the incomes, are lower.

What’s the right kind of inequality to focus on?

l  Fuctional inequality

l  Height and health (which difference is decreasing faster than income)

l  Cross-country vs. within country

2.       Last class, we mentioned that it takes 15 years for the world GDP to double. How can we begin to know these data (as I shown you)?

Technique one: We use our own standard to value the staff in the past.

Technique two: If sb.’s really rich in the past, we should have known it. Eg. People like Herodotus should have written it down. Look the poorest country today.

3.       What of Those incredible Ancient Achievements?

Until the start of IR, almost no individual got better off although population tripled. But the upper class, limited elites, concentrated the wealth, thus making the foundation of these achievements possible.

*What about the Godd Ol’ Days?

What about the recent Good Ol. Days?

Would you be the king of the world in 1700? NO

People, however powerful, rich, died easily in the past

The living standard, no matter for the rich or for the poor, became much better than before.