Acton Institute Powerblog

Why are some countries richer than others?

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Note: This is post #73 in a weekly video series on basic economics.

Mexico is wealthier than Central African Republic, and the United States is much wealthier than Mexico. Why is this true? Why do some countries have wealth that is 10 to 100 times more than another country? Why can some citizens in one country purchase so many more goods and services than people in a neighboring country?

In this video by Marginal Revolution University, Alex Tabarrok answers those questions and explains why we can learn so much about a country’s wealth and standard of living by looking at real GDP per capita—a country’s gross domestic product, divided by its population.

(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.

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Joe Carter Joe Carter is a Senior Editor at the Acton Institute. Joe also serves as an editor at the The Gospel Coalition, a communications specialist for the Ethics and Religious Liberty Commission of the Southern Baptist Convention, and as an adjunct professor of journalism at Patrick Henry College. He is the editor of the NIV Lifehacks Bible and co-author of How to Argue like Jesus: Learning Persuasion from History's Greatest Communicator (Crossway).