Dr. Marion L. Tupi is a senior policy analyst at the Cato Institute's Center for Global Liberty and Prosperity and co-author of 10 Global Trends Every Smart Person Should Know. She is also the Editor-in-Chief of the Human Progress Project and Co-Author of the Simon Project. In this episode, she shares her thoughts on why it s important to understand why the world is in such a good place, and why we should all pay attention to the data pointing in the opposite direction of the direction of human progress. She also discusses why the data points in a positive direction, and points to the fact that most people don t understand the reality of the world as it really is, and what we can do about it. This episode was recorded on March 24th, 2021, and was recorded at The Cato Institute in Washington, D.C., where Dr. Peterson is a Senior Fellow at the Center For Global Liberty & Prosperity, and a Co-author at The Simon Project, the Center for the Study of the Global Wellbeing Project, which focuses on the study of global well-being, as well as the politics and economics of Europe and Southern Africa. She received her B.A. in international relations and Classics from the University of the Witswatersrand in Johannesburg, South Africa, and his Ph.D. in International Relations from The University of St Andrews in Great Britain, and an M.A in International relations from the U.S. from the Johns Hopkins University, where she is a Fellow in the Department of International Relations and Diplomacy. In addition to her PhD. She holds a Ph. D. in Political Science and a Master of Public Policy. from the Harvard Graduate School. Dr. B. A post-doctorate in Public Policy, she is an Assistant Professor at the Harvard University, and she holds a Bachelor of Political Science, from Harvard University. and an MA in Public policy, from the Kennedy School of Sociology, and the Harvard Business School, and from the London University of which she completed a post-doctoral Fellowship at Harvard University in the Program on the Kennedy Kennedy School, which she received a Master's degree in the Political Science. in the School of Economics and Political Science at Harvard Business. Her thesis was on the intersection between economics and public policy, and her thesis on how to understand the political and economic policy, which was published in 2016. And she's a fellow fellow at Harvard.
00:00:00.940Hey everyone, real quick before you skip, I want to talk to you about something serious and important.
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00:00:54.040Welcome to the JBP Podcast. I'm Michaela Peterson.
00:00:57.420This is season four, episode 18. This episode features Marion Tupi and Jordan Peterson and was recorded on March 24th, 2021.
00:01:07.000Marion Tupi is a senior policy analyst at the Cato Institute's Center for Global Liberty and Prosperity and co-author of 10 Global Trends Every Smart Person Should Know.
00:01:17.360An excellent book, if I do say so myself.
00:01:19.860Marion and Dad discuss a variety of information critical to the direction of the world as outlined in his book, 10 Global Trends.
00:01:27.420They discuss each of the 10 positive trends over the last century, leading to a better, richer world overall for most of humanity.
00:01:35.280They explore how impactful these trends are and why the trajectory of societies is looking less apocalyptic than most people may believe.
00:01:44.580If you have found the ideas I discuss interesting and useful, perhaps you might consider purchasing my recently released book, Beyond Order, 12 More Rules for Life, available from Penguin Random House, in print or audio format.
00:02:02.640You could use the links we provide below or buy through Amazon or at your local bookstore.
00:02:09.360This new book, Beyond Order, provides what I hope is a productive and interesting walk through ideas that are both philosophically and sometimes spiritually meaningful, as well as being immediately implementable and practical.
00:02:25.340Beyond Order can be read and understood on its own, but also builds on the concepts that I developed in my previous books, 12 Rules for Life, and before that, Maps of Meaning.
00:02:40.300Thanks for listening, and enjoy the podcast.
00:03:04.980I'm pleased to have with me today Dr. Marion L. Tupi, who is the editor of humanprogress.org.
00:03:12.640A senior fellow at the Center for Global Liberty and Prosperity, and co-author of the Simon Project.
00:03:20.980He specializes in globalization and the study of global well-being, as well as the politics and economics of Europe and Southern Africa.
00:03:30.660His work has been published or featured in major print and non-print media outlets all throughout the English-speaking world.
00:03:37.160Dr. Tupi received his B.A. in international relations and classics from the University of the Witswatersrand in Johannesburg, South Africa,
00:03:46.540and his Ph.D. in international relations from the University of St. Andrews in Great Britain.
00:03:53.100He is the co-author of a recent book, Ten Global Trends That Every Smart Person Needs to Know,
00:04:00.140and many other trends you will find interesting.
00:04:03.600It's a beautiful book, and so that's an accomplishment in and of itself.
00:04:09.160It's also an extremely interesting book, wide-ranging and necessary, in my estimation,
00:04:18.040partly because most of what we consume in relationship to global occurrences, economic and otherwise, is negative.
00:04:32.760And that's part of the reason that I wanted to talk to Dr. Tupi today,
00:04:38.480because his work is in the same vein as Bjorn Lomberg's work and Matt Ridley's work, among other people,
00:04:47.900putting forward Stephen Pinker, putting forward a narrative of continued and rapid progress
00:04:52.840that seems at odds in terms of content and psychologically with virtually everything
00:04:59.120that seems to make up the major media trend, story, zeitgeist.
00:06:03.100When you look at long-term trends, and we will talk about some of them, most of them are pointing to gradual, incremental, long-term improvement.
00:06:14.580Now, on top of that, we live in a world where a lot of people find meaning and excitement in embracing a lot of movements to, quote, unquote, improve the world.
00:06:28.680But you cannot improve the world if you don't know what the reality of the world is.
00:06:36.000And so, if you think the reality of human existence is different from what it really is,
00:06:42.820then your improvement can actually detract from human flourishing rather than contribute to it.
00:06:52.900So, the idea behind the book was to inform, and it is not really an attempt to produce a Pollyannish, all-optimistic view on the world.
00:07:09.400Clearly, there are problems that remain, and there will be new problems that will arise.
00:07:13.120But we believe there is some value in people knowing the facts, factfulness, that Hans Rosling used to talk about.
00:07:25.140And the book is largely free of theory.
00:07:30.400It is only facts that we have gotten from third parties, with one exception of a trend on natural resources that we will discuss.
00:07:38.880Everything else comes from third sources, which are the World Bank, the IMF, Eurostat, OECD, or well-established, independent, and creditable academics.
00:07:51.240So, and of course, there are footnotes so that people can check that we are not trying to deceive them into anything.
00:07:58.900And the reason why we structured the book we did, the reason why we introduced a lot of nice illustrations,
00:08:04.720is because we want it to be a coffee table book of facts.
00:08:07.720So, in addition to all the architecture books and books about dogs and cooking that people put on their dining room tables or living room tables,
00:08:19.480we are hoping that they will include this book.
00:08:22.460And so, whilst people are fixing food or drinks, maybe their guests are going to open the book
00:08:29.020and look at something interesting or counterintuitive, and maybe that will lead to a conversation.
00:08:34.520Well, it's a book you can sit and read, which is what I did, but it's also clearly a book that you can leaf through.
00:08:42.780And it is, as I mentioned earlier, beautiful.
00:16:49.480Yeah, but around $2 per person per day.
00:16:51.880Right, so people slide by that threshold.
00:16:53.820It's also not a dramatic decrease in their poverty per person, right, because they just move over that threshold.
00:17:00.680Nonetheless, the numbers are very impressive.
00:17:02.740And actually, the speed is also really impressive.
00:17:06.180I mean, we've decreased, or poverty has decreased, absolute poverty has decreased in the world at an ever-increasing rate that's accelerated dramatically over the last 15 years.
00:17:17.480And so it also might be that we just don't know this yet.
00:17:22.080It's slow compared to how fast things can go bad, but it's still really quite rapid on an historical scale.
00:17:33.400Yeah, I know that you want to talk about the different trends, and one of them is absolute poverty.
00:17:38.140So maybe we can return to it in a moment.
00:17:40.600Sure, well, let's do this, then let's go.
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00:26:56.220So, let me hassle you for a couple of minutes because I've been – you know, I've talked to Matt and Ridley and to Bjorn.
00:27:02.720And so, there's a group of people that are – and Steven Pinker, for that matter, who are rational optimists, let's say, or intelligent optimists or informed optimists.
00:27:12.080I got interested in this – I worked for the UN, for UN Committee for a couple of years, and I was reviewing books by the dozen on ecology and economics.
00:27:24.640And I was shocked, and what shocked me was things were way better than I thought they were, and they were getting better at a rate that was stunning, and I didn't know any of that.
00:27:35.600And it was overwhelming pouring through the data because I had been so wrong in my implicit presumptions.
00:27:42.920And so, that's what got me interested in all of this.
00:27:45.680And, of course, I was also extremely happy about it to see what was actually happening, how many good things were happening.
00:27:50.960So, but here's the criticism that – so, I posted these talks with Bjorn, for example, and, you know, people have responded, often young people, and they say, well, that's – they say something like this.
00:28:04.880That's all very well and good for you, Dr. Peterson or Bjorn.
00:28:14.540You grew up when the job market was stellar.
00:28:17.180However, it's much, much harder for young people to make their way in the Western world now than it was 20 years ago.
00:28:25.680That sort of security, long-term security, isn't there.
00:28:30.480And so, you can look at these global trends and extract out some positive information from them,
00:28:36.260but that just gives you license to ignore the on-the-ground problems that so many people, so many young people are either facing or feel that they're facing in the West.
00:31:16.520About politics, they don't generally vote.
00:31:18.780They tend to embrace all sorts of causes which are inimical to progress and to growth, such as, for example, socialism.
00:31:28.740They tend to be much more open to it than people who are older and turn more conservative.
00:31:34.140And so, delving deeper into why the 1980s and the 1990s had higher rates of economic growth is not a bad idea from the perspective of young people.
00:31:51.740Well, it's also not exactly clear what baseline is being used when the claim is made that things aren't as good or as easy as they once were.
00:32:06.320I mean, they're certainly a lot better now than they were in 1820.
00:32:10.120They're certainly a lot better than they were in 1930 or 1940, probably 1950.
00:32:16.220Then there was a period of incredible growth in the 60s, in particular, the post-war period,
00:32:21.740where employment was a relatively straightforward matter for many people.
00:32:27.200And there was plentiful, long-term, secure jobs.
00:32:33.360Now, how difficult it was in the 60s to obtain one of those is still an open question.
00:32:38.920Many people were much less educated than they are now.
00:32:41.460Now, it isn't clear, it isn't absolutely clear to me that things were any easier any time in the past.
00:32:49.500And it's certainly the case that for most of the past, things were immeasurably worse.
00:32:56.120When I said that they had terrible 20 years, what I meant is that the last 20 years almost seemed like a state of constant crisis.
00:33:05.200But let's disaggregate this experience that young people have.
00:33:11.420If you are a black person in the United States, for example, you have never lived in a safer, more tolerant and more accepting society.
00:33:21.740If you are a gay person in the world, again, sorry, in Western societies, you have never lived in a more tolerant or a more accepting society.
00:33:30.520If you are a woman, the same goes for you.
00:33:33.240So that's already well over 50% of the population.
00:33:38.580Also, let's not forget that whilst the wages of certain people in the United States, certain sections of the labor force have been stagnating,
00:33:49.000overall, the median household income in the United States prior to COVID was at a record high,
00:33:58.020which is to say that compared to the earnings of a median household in the 1970s or 1980s,
00:34:07.280American earning power prior to COVID was at an all-time high.
00:34:14.000So it's not true that people were poorer.
00:34:17.000Now, let me make one last point about this.
00:34:22.440When it comes to cost of living in America, which is what a lot of people are talking about,
00:34:26.860very much depends on what you are looking at.
00:34:30.060Cars are cheaper by 70% relative to wages than what they were 20 years ago.
00:34:37.700Toys, TVs, food, all of those are much cheaper than what they were 20 years ago relative to wages.
00:34:46.120Even housing, most people don't know this, but it happens to be true.
00:34:50.380Housing in the United States is 10% cheaper than it was 20 years ago relative to wages.
00:34:57.740Now, that would exclude high-demand cities, I would imagine, right?
00:39:09.060And that's part of the reason, again, why health care has exploded.
00:39:12.740But between those two, I can see why Americans would be quite dissatisfied with their standards of living.
00:39:21.940And I'm afraid that a third reason why Americans are going to be dissatisfied with their standards of living is coming down the pipeline.
00:39:29.160And I think that is going to be a massive increase in energy costs in the United States, just as it happened in Europe.
00:39:36.040In Europe now, they have a term called energy poverty.
00:39:41.720So, even in places which are at the height of economic development, like Britain and Germany,
00:39:47.300people are not heating their homes in the middle of winter.
00:39:50.800People are washing themselves in lukewarm water because prices of energy have been artificially, by government fiat, jacked up to prices where even the richest people in the world,
00:40:00.560I mean, as a population, not as a share of population, cannot afford things which are the essence of what life should be like in a Western civilization.
00:40:11.420And what worries me is that some of those proposals that have taken on in Europe and which are making Europeans so miserable are going to come down to the United States and perhaps even to Canada.
00:40:22.540So, let's draw some quick conclusions and then we'll go talk about the 10 major trends.
00:40:27.300And so, correct me if I've got any of this wrong.
00:40:32.020It's very difficult to make an informed case that things are worse now in almost every way than they were at any other time in the past,
00:40:40.660at any time in the past, including the last two decades, but certainly going back before that.
00:40:45.440Things are better on almost every possible measure.
00:40:48.780People don't know that, partly because we have a negativity bias.
00:40:52.940Yes, we're attracted by negative information and that's what is put forth by a media hell-bent on attracting our attention at any cost.
00:41:01.160We're also deluded to some degree by our historical ignorance and also by anomalies in the economic scheme.
00:41:09.780And exceptionally high prices of housing in high, high-demand, high-quality areas, high, and the same thing happening, say, with university education,
00:41:18.540despite the fact that maybe state university education is still quite cheap or community college, that kind of thing.
00:42:28.780Because of this pervasive negative message that's being put forward constantly, that also encourages us to exaggerate the degree to which the current condition is bad and getting worse.
00:42:44.840We don't know, and we assume that, and that makes us more miserable than we have any reason to be.
00:42:50.820The danger in that is that we're going to fail to appreciate and work to undermine all sorts of things that are actually working very well, if we only could see the facts on the ground.
00:43:04.180That's exactly right, and if there's one message that I would like to pass on to your young followers who are having a tougher time than would be expected for young people to have,
00:43:16.060things could get much worse if the basic underpinnings of what made Western society rich and prosperous, which is to say liberal democracy and some form of free market capitals and free enterprise.
00:43:35.820If those two are eroded or destroyed, we are in for a much tougher time.
00:43:43.220If you want to see how young people, how a society can deteriorate, go to Venezuela.
00:43:51.800It's a couple of hours from Miami and see how young people live there.
00:43:57.400Now, Venezuela was a country where in the early 1950s, GDP per capita was higher than in the United States, higher than in the United States.
00:44:07.120Today, people are eating cats and dogs and slaughtering animals in zoo for meat.
00:44:14.060Young women have no other option but to prostitute themselves, to prostitute themselves.
00:44:25.460Not long ago, some of the leading lights of American progressivism, such as AOC, have been singing the praises of 21st century Venezuela socialism.
00:44:43.400So things could get much worse, and they will if we forget the lessons of history and if we don't understand that the political stability, to the extent we still have it, is a result of liberal democracy, limited government.
00:45:03.260And the outcome and the reason for economic growth and the reason why we have all the nice things that people in Venezuela don't is because we have free markets, free enterprise, and free trade.
00:45:18.140Okay, okay, let's, well, you'd also think it's kind of strange that given our proclivity, let's say, to devour bad news, you'd think that the story of Venezuela would get a lot more coverage than it actually gets.
00:45:32.580So that's kind of, maybe we can return to that.
00:45:37.680So the first one, so the book is structured so that on the right-hand page, there's a graphic graph showing progress across time, time or change across time, a variety of different trends, let's say.
00:45:52.100The first one, the first trend is the great enrichment, and tell us what that means and what it signifies.
00:46:02.460So the chart, which you may be able to show at some point in the future, looks like a hockey stick, which is to say that for all of our recorded history, let's say going back 4,000 BC, but we can estimate even further back in time.
00:46:19.540There it is, the hockey stick of human prosperity.
00:46:26.740It is estimated that prior to the Industrial Revolution in the late 17 and early 1800s, global economy grew by about 0.1% per year, which is to say that to double your prosperity would have taken thousands of years.
00:46:44.960As late as 1900, which is to say the presidency of Theodore Roosevelt, who in Victoria was on the throne, the globe produced roughly $3 trillion in output.
00:47:13.220So from $3 trillion to $121 trillion in a scope of 100 years adjusted for inflation.
00:47:20.460And if the growth that we have experienced, the growth rate that we have experienced over the last 100 years continues into 2100, the world will produce $600 trillion in output, real inflation adjusted output.
00:47:39.600Over the next 80 years, the globe could produce six times more value than it is currently producing if we maintain the current economic growth rate.
00:47:49.700And do you think that's an optimistic projection or a conservative projection?
00:47:55.120That's what leads us back to the original point that we discussed.
00:47:58.100It very much depends on economic policies and political stability.
00:48:02.240If you don't have civil wars around the world and government change hands in a peaceful and predictable way, then we should be okay when it comes to political stability.
00:48:15.400When it comes to economics, we are seeing as surprising and, to be quite frank, well, to be frank, surprising and almost inexplicable renewed interest in more restrictive economic policies from socialism on the left to hardcore protectionism on the right.
00:48:38.260And if our economic growth rate falls from 1.82% that we have experienced over the last year to 0.1%, which we have experienced over the previous 10,000 years, then it will take us 6,000 years to get from $100 trillion to $200 trillion.
00:49:02.260So the most remarkable thing about this is exactly the hockey stick shape.
00:49:09.480As you pointed out, nothing at all happened until the mid-1800s, essentially.
00:49:15.740And then all of a sudden, things improved so rapidly that it's virtually incomprehensible.
00:49:21.920It is the most important question in economics, what happens in the late 1700s, early 1800s, that produces that hockey stick effect.
00:49:33.440And just to clarify, there have been in human history periods of economic efflorescence, flourishing, but they were usually restricted to small parts of the world, and they usually petered out.
00:49:49.880So, for example, Song China has produced some remarkable technological discoveries, and it appeared to be a time of relative plenty compared to other countries in the world.
00:50:02.900But that petered out when Song dynasty was replaced by the Ming dynasty.
00:50:08.400Similarly, the Roman Empire appears to have been a place that was largely at peace internally and quite prosperous, but that came to an end in 467 or whenever that happened.
00:50:28.660I mean, Europe has experienced the greatest century of peace and prosperity between 1814, the end of Napoleonic Wars, and 1914, the breakout of the First World War, which slaughtered tens of millions and destroyed a lot of wealth.
00:50:45.640So, you know, economic progress can certainly take a knock, and it can take a time to recover.
00:50:54.680But in order for it to recover, you have to rediscover the reasons why you had high economic growth rates in the first place.
00:51:00.920So, okay, so the first lesson is that something happened in the last 150 years that propelled human productive capacity and distribution globally into the stratosphere.
00:51:16.400And there's no sign that that's slowing, although we could disrupt it, because we don't exactly understand why it happened, and we're not appreciative enough of its miraculous nature and the perhaps fragile preconditions for its continued existence.
00:51:35.500Well, when I said that it's the biggest question in economics, I'm not suggesting that there aren't theories of why it happened.
00:51:44.420The theory that I espoused and the theory that has convinced me is that over hundreds of years in Western Europe and in North America, and then later in other parts of the world, our economic and political institutions have grown more inclusive, open, or to use a political word, liberal.
00:52:05.800Now, I'm using liberal in its European sense, not liberal in the current American sense.
00:52:11.260And what that meant was that you no longer needed permission from the king in order to open a shop or import a bag of wool from another country.
00:52:22.320So there's an autonomy, there's an element of autonomy, but there's also an element of generosity, that autonomy leads to increased productivity, but the consequences of the production are also being shared, rather than hoarded.
00:52:36.640They're being distributed reasonably well.
00:52:38.300Yes, but the key here was, I think, that monarchies, governments, have become more responsible to their people, more accountable to their people, and they started allowing a much greater level of economic freedom.
00:53:00.700Now, the reason why that happened is a very interesting one.
00:53:04.300Once again, I'm going to tell you a theory that I espouse and a theory that convinced me, other people may have other ideas.
00:53:12.900But basically what has happened is that unlike in other parts of the world, such as the Ottoman Empire and such as China, Europe never had an internal empire.
00:53:24.880One dynasty was never able to conquer different European states into the creation of one European mega empire.
00:53:34.980And because governing elites of different states, France, Germany, Spain, Portugal, Holland, Belgium, whatever, because they wanted to survive, because they didn't want to be vassals of another monarch, because they wanted to remain independent.
00:53:53.740They realized that they needed to generate a lot of economic growth internally.
00:54:00.160And they realized that the only way that they could generate economic growth was through technological innovation.
00:54:07.120And technological innovation, you can only get in societies which allow people a greater degree, a relatively great degree of intellectual freedom.
00:54:17.940And so countries which felt at most threatened, such as Holland, because the French were always trying to take them over, would welcome into their cities and into the country thinkers from all over the world, free thinkers from all over Europe, who established themselves there, produced new ideas, produced new technologies, and Holland could defend itself against the predation of other countries.
00:54:46.360England was another example of how this happened.
00:54:51.040So it is through geopolitical competition, in other words, the dismemberment of European countries, that you get greater appreciation of the need for freedom,
00:55:05.940which then leads to innovation, which then leads to innovation, which then leads to generation of more money, which then can keep your country independent and from being swallowed by a foreign conqueror.
00:55:18.820But if you want to reduce it to one sentence, it would be political and economic institutions became more open, inclusive, and liberal, whether you were a Jew, or whether you were a Muslim, or a Christian, or a Catholic, you could function within the Amsterdam Stock Exchange, and nobody, and you were free from prosecution.
00:55:40.860All right, let's go to the next trend, the end of poverty.
00:55:51.620Before the Industrial Revolution, or rather, let's start 12,000 years ago, when humanity discovers agriculture, between 12,000 years ago and roughly 200 years ago, pretty much everybody in the world was a farmer or a farm laborer.
00:56:15.020As late as 1800, roughly 9 out of 10 people around the world were involved in agriculture, they were farmers, and they were very poor.
00:56:25.100And then the other 10% were basically the nobility, the clergy, and the military.
00:56:31.540But 90% of humanity were either remained hunter-gatherers, or they were farmers or farm laborers.
00:56:38.060And then with the Industrial Revolution, you start factoring opening up all over the Western world, and people realize that they can make more money in the cities working in factories.
00:56:47.920So they start leaving the rural areas and moving into urban areas, earning more money.
00:56:55.220And eventually, the agricultural population in the United States, for example, declines from 40% in 1900, well, from 90% in 1800 to 40% in 1900 to 2% today.
00:57:10.380Today, only 2% of American workers work in agriculture.
00:57:13.060The rest of them works in services industry, tourism, computing, and whatever.
00:57:23.500But this is a process through which Americans stopped being very poor and became very rich.
00:57:29.820And this process is repeating all around the world.
00:57:33.140The world is industrializing, the world is becoming more service-oriented, and fewer and fewer people around the world work in agriculture,
00:57:39.920even though our agricultural output is higher than ever before, and we'll get to that trend too.
00:57:46.360Just to highlight the meaning of this graph.
00:57:50.880So in 1830, 95% of the global population was in absolute poverty.
00:57:57.560That was a much smaller number of people as well.
00:58:01.120And by the year 2015, roughly speaking, we're down to 10%.
01:00:08.760It's absolutely unbelievable that that can be the case.
01:00:11.440It is the fastest reduction in global poverty, primarily because many poor and previously socialist countries have changed their understanding of economics and way to prosperity.
01:00:24.720I want to harass you again about something.
01:00:27.620So you were talking about socialism and its decline.
01:00:29.660So Canada has many democratic socialist policies.
01:00:39.040Norway, which in your book ranks highest in terms of the human development index, I believe that's the case.
01:00:46.720The Scandinavian countries, of course, are famous for functional democratic socialism.
01:00:51.060And so what do you have to say about that?
01:00:56.000Forget about communism and the hardcore communist, Soviet-pushed Maoist doctrines that anyone with any sense is going to regard,
01:01:04.980in the light of what happened historically, as absolutely counterproductive.
01:01:08.440Anyone who supports Maoist doctrines or Soviet doctrines is reprehensible.
01:01:13.700They're so ignorant or malevolent in some sense that it's reprehensible.
01:01:17.780It gets more complicated, I would say, when you're talking about the range of redistributive policies that characterize Northern Europe and Central Europe and Canada and the United States.
01:01:33.360There's a wide range of theories, preferences for government intervention and for democratic socialist policies.
01:01:44.260And so how much of a range do you think there is where the left and the right are equally functional but emphasize different things?
01:01:59.780That might be the way of thinking about it.
01:05:26.960And what it shows is the average price of 50 most important natural resources between 1980 and 2018.
01:05:38.360And what we found, as you would expect, is they increased in nominal price.
01:05:42.980Nominal price is unadjusted for inflation.
01:05:45.000As everybody know or should know, currency becomes less valuable every year because more of it is printed.
01:05:51.660So in terms of nominal dollars, the 50 commodities have become more expensive over the last 40 years.
01:06:00.380Once you adjust the cost of commodities, and I'm talking about oil, gas, chicken, beef, lumber, shrimp, oranges, whatever.
01:06:13.720However, once you account for inflation, that was the orange line, what you see is actually the natural resources are much cheaper today than they were in 1980.
01:06:29.400The blue line is what I call the time price.
01:06:32.360Time price is really – it's a better price than real or inflation-adjusted price because it also takes into account wages.
01:06:42.600As you know, wages tend to increase above inflation because people become more productive.
01:06:49.340So if inflation in the United States is 2%, a typical increase will be maybe about 3% because people have become more productive over the course of the year.
01:06:58.500So once you start comparing prices of resources relative to wages, what you see is that they have fallen even more.
01:07:23.34018, okay, so despite more people, despite more urbanization, despite the hypothetically decreasing prevalence of resources, despite all of those hypothetical problems, there's been a 70% decline in basic global commodity prices adjusted for wages from 1980 till 2018.
01:07:53.340So even though the population of the world has increased by something like 70%, the prices of natural resources have declined by 70%, which means that every additional person born on the planet has made things cheaper for us by about 1%.
01:08:21.620You know, I've also seen that more people means more ecological preservation, and so does more wealth, because richer people care more about the environment.
01:08:29.620And so you see that perverse occurrence, too, that once GDP gets to the point where people aren't scrabbling around trying to stay alive, so maybe $5,000 per capita, all of a sudden environmental concerns start to manifest themselves.
01:08:45.420And so it looks like we could have more people.
01:08:46.420And so it looks like we could have more people and make them richer faster, and that would be better for the planet.
01:10:18.700And we still haven't recovered from that.
01:10:21.460No, we still haven't recovered from that.
01:10:22.980It's part of an autocalyptic narrative.
01:10:24.000No one believes, if I tell my students, we're going to peak at 9 billion and we can handle that, and then the population is going to decline, no one believes that.
01:10:32.220If you say that, well, we've got richer as more people have been born rather than poorer because brain power exceeds consumption, essentially, especially as people have got healthier and their IQ has increased, which is something we could talk about as well.
01:10:46.300Well, none of this is part of the general apocalyptic narrative.
01:10:51.460No, not only can we get access to new resources, but also we can replace resources which are becoming scarce.
01:10:57.400So, for example, humans used to make candles out of spermaceti, which is this weird sort of stuff in the brains of the whales.
01:11:15.180So we used to murder them by the thousands.
01:11:18.700And we used to scrape out that spermaceti and build it into nice candles.
01:11:23.440And then we realized that we didn't have to do that, that it was actually quite expensive and quite stupid because we could produce electricity by burning coal.
01:11:33.420And then we decided that we can switch from coal to gas and maybe eventually to nuclear and whatever.
01:11:41.140And so that's how humanity manages to constantly produce more.
01:11:49.440And, in fact, in Western countries today, we have reached peak stuff.
01:11:55.320This is a book, a very important book, which I recommend to your readers by Andrew McAfee, and that is making more from less or more from less.
01:12:03.760Now, what it means, really, is that even though the American economy and the British economy continue to grow and produce more GDP per capita in absolute terms,
01:12:17.020the amount of resources that go into it, be it aluminum or whatever, that has actually peaked off about 10 or 20 years ago, and it's now declining.
01:12:31.580So we have become so incredibly productive that we can now use much less resources in order to produce more wealth, more GDP.
01:12:52.400So right now, there are 7.8 billion people in the world.
01:12:57.620It looks like we are going to peak at 9.8 in the 2060s or the 80s, and then it will decline to about 8.8 by the end of this century.
01:13:09.760Lancet had a study a couple of months ago which showed, again, remember, 7.8 billion people in the world today.
01:13:17.100Lancet thinks that there will be either 6.8 or 8.8 billion people in the world in 2100, but every demographer that I know of expects that human population will peak, and then it will start declining.
01:13:33.380That's because a total fertility rate, which is to say the number of babies born to a woman, have been on a downward trajectory.
01:13:43.740Currently, in the United States, in much of Western Europe, women are having fewer than two babies per woman per lifetime.
01:13:53.820And in order to have a replacement rate, you need 2.1 babies because some of them die.
01:13:58.540So population without immigration in Western Europe will continue to decline.
01:14:06.420Our numbers are still going up because, obviously, we have huge immigration, but women are not having that many babies.
01:14:15.080Now, is this going to be a blessing or is it going to be a potential problem?
01:14:19.500Well, it could be a potential problem because human beings are the producers of ideas, and ideas lead to innovation.
01:14:28.540And if a genius is one out of a billion or one out of a million, then the fewer millions of people you have born, the fewer geniuses are going to be born.
01:14:38.020And that in itself, and that to me is a major concern.
01:14:44.400But, of course, in Western countries, we have promised so much to the future generations that are supposed to be paid for by children who are born in the future.
01:14:56.920But if those children are not being born, who is going to pay off that debt in the future?
01:15:00.840Who is going to pay for all those retirees?
01:15:02.900Those questions should also be answered.
01:15:05.360Yes, it's quite surprising to note that one of the more pressing social problems in 100 years might be that there aren't enough people, rather than there are too many.
01:15:27.000We can't even think about problems 100 years in the future, because it's going to be so different 100 years from now that nothing we could possibly talk about right now is going to be relevant.
01:15:36.880We don't have a five-year horizon or a 10-year horizon, given the rate of technological change, let alone 100 years.
01:15:43.840So, but the moral of this story is, it doesn't look like we're going to overpopulate the planet to the point where we're going to destroy all our natural resources, the planet, and everyone's going to starve.