The world, on average, is richer than ever before

The world, on average, is richer than ever before. What does this mean? That, objectively speaking, life has been better for everyone in general.

There are a number of theories that try to explain the cause of this phenomenon, here’s one that I ascribe to:

Over hundreds of years, in western Europe, in North America, and later in other parts of the world. Economic and political institutions were growing more inclusive, more open, or to use a political word, more “liberal.” (in a European sense, not in the more familiar American sense) what that meant is that you no longer needed permission from the king in order to open shop, that there was a new level of autonomy. Monarchies, governments became more responsible, more accountable to their people—they started allowing a much greater level of economic freedom.

Unlike in other parts of the world such as the Ottoman Empire and China, Europe never had an internal empire; one dynasty was never able to conquer the different European states into one European mega-empire. This was because governing elites of different states: France, Germany, Spain, Holland, Portugal, Belgium, etc. wanted to survive. They didn’t want to be vassals of another monarch, they wanted to remain independent. They realized that, in order to do that, they needed to generate a lot of economic growth internally, and they realized the only way they could generate economic growth internally was through technological innovation.

Technological innovation may only be achieved within societies that allow people a relatively great degree of intellectual freedom. Countries that felt threatened like Holland, because the French were always trying to take them over, would welcome thinkers from all over Europe and the world, free-thinkers who established themselves there and produced new ideas and technologies that allowed Holland to flourish and defend itself effectively against the predation of other countries.

It is through geopolitical competition, in other words, the dismemberment of European countries that you get a greater appreciation of the need for freedom which then leads to innovation, which leads to the generation of more wealth, which then can keep a country independent and from being swallowed by a foreign power.

In short, political and economic institutions became more open, inclusive, and liberal; whether you were a Jew, a Muslim, a Christian, or a Catholic, you could function within the Amsterdam stock exchange or those of other freer states, and you were free from unfair prosecution.

Of course, this idea of global wealth discounts the notion of wealth inequality, but odds are even if you are poor now you have it better than someone did in the past. No system is perfect and there are problems that come with technology and beyond, but life is objectively better for everyone, on average, and that’s something to be thankful for.

SOURCE: Dr. Marian Tupy via the Jordan B. Peterson Podcast