Note: This is post #74 in a weekly video series on basic economics.
In the previous video in this series we learned a basic fact of economic wealth—that countries can vary widely in standard of living. How can we explain wealth disparities between countries?
The answer, as Alex Tabarrok of Marginal Revolution university explains, is growth rates. Tabarrok examines the growth rate of the U.S. economy and considers what would life be like if our economy had grown at an even higher rate.
(If you find the pace of the videos too slow, I’d recommend watching them at 1.5 to 2 times the speed. You can adjust the speed at which the video plays by clicking on “Settings” (the gear symbol) and changing “Speed” from normal to 1.25, 1.5 or 2.)
Click here to see other videos in the Introduction to Economics series.