What Are the 6 Killer Apps of Prosperity and Their Impact?

TL;DR

The six 'killer apps' of prosperity that set the West apart are competition, the scientific revolution, property rights, modern medicine, the consumer society, and the work ethic. These institutions, rather than geography or imperialism, explain the Great Divergence, which saw the West gain immense wealth and power compared to the rest of the world, particularly Asia. As global power shifts, these ideas are now being adopted by emerging economies.

Transcript

Let's talk about billions. Let's talk about past and future billions. We know that about 106 billion people have ever lived. And we know that most of them are dead. And we also know that most of them live or lived in Asia. And we also know that most of them were or are very poor -- did not live for very long. Let's talk about billions. Let's talk a... Read More

Key Insights

• 💰 The majority of wealth in the world today was made after the year 1800 and is currently owned by Westerners, who make up only 19% of the world's population. This is known as "The Great Divergence."
• 💰 The chart shows a significant exponential increase in the difference between per capita incomes in Britain and India, as well as between America and China, from 1500 to the 1970s.
• ⚔️ The rise of Western dominance was not solely due to imperialism, as it was a common practice among many civilizations.
• ⚔️ The key to the Great Divergence was not geography or national character, but rather the institutions and ideas that the West developed, such as the six "killer apps" of competition, scientific revolution, property rights, modern medicine, consumer society, and work ethic.
• ⚡ East Asia is currently experiencing a rise in technological innovation and economic dominance, overtaking the West in certain areas such as patents.
• ⚡ The decline of Western civilization is not inevitable, but there are concerns about the growing burden of debt and loss of work ethic.
• 🌍 The convergence of economic power is not limited to the East, but also includes regions such as Latin America.
• 🌍 The current focus of North America and Europe on their own internal issues may be causing them to overlook these global trends.
• 🎙️ More videos with Niall Ferguson:
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Questions & Answers

Q: How did the average income of the average British person compare to the average Indian person in the 1970s?

In the 1970s, the average Briton was more than 10 times richer than the average Indian, even when accounting for differences in the cost of living.

Q: What were the factors that contributed to the rise of the Western empires in terms of territory, population, and economic output?

The rise of the Western empires was influenced by factors such as competition among political units and corporations, the scientific revolution giving control over nature, strong property rights based on the rule of law, advancements in modern medicine, the emergence of a consumer society, and the work ethic.

Q: What were the consequences of the Great Divergence on the global balance of power?

The Great Divergence led to the West having a significant advantage in wealth and power, with Westerners owning two-thirds of the world's wealth despite being only 19% of the global population. However, the balance of power is now shifting as the East, particularly China, is rapidly rising in wealth and influence.

Q: How did the six "killer apps" contribute to the Western dominance?

The six "killer apps" - competition, the scientific revolution, property rights, modern medicine, the consumer society, and the work ethic - were institutional factors that set the West apart from the rest. They facilitated economic growth, technological advancements, and societal development, which ultimately led to the Great Divergence.

Summary & Key Takeaways

• The Great Divergence refers to the exponential increase in wealth and power of the West compared to the rest of the world, particularly Asia.

• Imperialism played a role in the Western dominance, but it cannot solely explain the Great Divergence as other empires existed and were beaten.

• The six "killer apps" that set the West apart from the rest and contributed to its dominance are competition, the scientific revolution, property rights, modern medicine, the consumer society, and the work ethic.