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5.0 out of 5 stars
How Rich Countries Get Rich, Aug 2 2002
Overall, it is a fascinating read for anyone interested in economics, or how rich countries become rich. Lots of good facts which reflect on the competitive, and opportunistic capitalist paradigm we currently live in. 1) There has been significant change in the economic landscape, and that change continues to accelerate. Before the industrial revolution, 98% of the world's population had income only from farming. Now less than 2% are farmers. 2) The world is increasing a global market. Coca Cola gets 80% of its revenues from outside the United States. 3) The gap in wealth continues to widen.
- Bill Gates market value is the same as the poorest 110,000,000 Americans.
- In the United States, the average CEO pay is 212x the average worker.
- The top 1% of people in the US own 40% of the total wealth.
- Africa GDP is the same as it was in 1965. Has not changed in 35 years. 4) We are all busier. With the invention of electricity, the average hours of sleep dropped from 9 hours to 7 hours a day. 5) Old companies must destroy themselves (re-invent themselves) in order to stay competitive and grow. Also, individuals must constantly change and grow to remain competitive. If not, they will fall behind. 6) Capitalism is a tough game. The number of businesses failing (88% a year) is almost as many as new business are formed. Wealth is constantly being transferred from one group ~ to another. 7) There are many basic ingredients to create wealth. Some are cultural (like entreprenuership), some are created and enforced by the government (intellectual property, law and order, infrastructure), some are learned by the individual (skills, knowledge) 8) Each country, and region has its strengths and weakness. In order to build wealth for the future, each country must act differently: - Japan: Clean up the banks, bring in professional management, restore government credibility, and create internal growth. Japan is too big to play the export game anymore.
- US: Break the two-tier society (rich and very poor) by improving education for more skilled workers, and investing more in infrastructure
- Europe: Encourage entrepreneurs and corporate flexibility 9) Wealth is created when there is a disequillibrium (imbalance) in technology, or society. When there is change, there is opportunity ~ because wealth is being transferred. 10) Know your weakness and go where that weakness is not important.
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