Shanghai's economy, at $414 billion, is larger today than China's entire national economy was in 1990. pic.twitter.com/UavtQD0yVD
— The Spectator Index (@spectatorindex) April 14, 2017
It’s easy to under-estimate what has happened.
See the same link for a sense of the budget requests overall — it suggests some comparatively impressive ax-wielding, but with the savings then squandered on the public security establishment.
Scott Alexander (already linked below):
I would say these picks raise my previously abysmal opinion of Trump, except that they all show the obvious hand of Peter Thiel. And I’m not sure it’s possible to raise my opinion of Thiel at this point without me doing something awkward like starting a cult.
The global wealth distribution is predictably spiky. That’s mostly because scarcely anyone owns anything:
… it does not take that much to get into the top 1% of wealth holders. Once debts have been subtracted, a person needs only $3,650 to be among the wealthiest half of the world’s citizens. However, about $77,000 is required to be a member of the top 10% of global wealth holders and $798,000 to belong to the top 1%. So if you own a home in any major city in the rich North on your own and without a mortgage, you are part of the top 1%.
This looks like what you’d expect if population — at the global level — expanded approximately to the resource limit. (There are no doubt cuddlier interpretations out there.)
Be afraid, be very afraid …
Italian government bonds are the third largest asset class on planet Earth.
Why did the Industrial Revolution happen in Europe, rather than China? Joel Mokyr thinks fragmentation was the key:
In Europe, no one ever succeeds in unifying it, and you have continuous competition. The French are worried about the English, the English are worried about the Spanish, the Spanish are worried about the Turks. That keeps everybody on their toes, which is something economists immediately recognize as the competitive model. To have progress, you want a system that is competitive, not one that is dominated by a single power. […] I think that is the major difference. It isn’t just that China doesn’t have an Industrial Revolution, it doesn’t have a Galileo or a Newton or a Descartes, people who announced that everything people did before them was wrong. That’s hard to do in any society, but it was easier to do in Europe than China. The reason precisely is because Europe was fragmented, and so when somebody says something very novel and radical, if the government decides they are a heretic and threatens to prosecute them, they pack their suitcase and go across the border.
Unity is a decelerator.