Too Big For China | Startups - Full Documentary Inequality - how wealth becomes power 6 months ago   50:46

Advexon Science Network
12,000 startups are being created everyday in China.
Fifty years ago, you might have heard some parents in the U.S. try to reprimand their children by saying: “eat your food, there’s starving children in China.”

But that was a long time ago. Like the asteroid that wiped out the dinosaurs millions of years ago, China’s economic growth is changing the world.

An undeveloped country, suffering from famine, became an economic superpower that took over the world’s production in less than fifty years.

China keeps growing faster than any other big country ever has.

What mysteries lie behind its success?

Three crucial factors have attributed to China’s economic miracle: a gigantic population, production efficiency and intensity and capital, in other words, its total factor productivity (TFP).

Let’s dig in and examine how these three factors have taken China’s GDP to unprecedented heights.

A country’s GDP per capita is that country’s GDP divided by its population. It’s an indicator for economic performance relative to size. Since China’s economic reforms in 1978, its annual GDP per capita growth rate has been steady at around 9%. That’s a remarkable performance, given that the World Banks already deems a 2% GDP per capita growth rate to be excellent.

In the graph above, you can see how physical capital stock accounted for over half of China’s growth rate between 2000 and 2012. China’s TFP contributed to one third of its growth, while China’s labor force was vital during the earlier period.

The mix of these three factors are what drives China’s amazing growth.

Industrialization meets one billion workers

China’s massive population proved to be a gift from the gods.

Before China’s infamous One-Child Policy in 1979, China had an incredibly high birth rate. This eventually led to China’s working age population (15-64 years old) reaching one billion by 2014. This seemingly infinite labor force was a perfect match for industrialization.

For the first stage of any pre-industrial economy, you need to focus on agriculture. This is low-skilled labor but very intensive. China properly followed the Asian Capital Development model by moving on to manufacturing. It requires more skill, but is still incredibly labor intensive. China’s massive workforce moved from the fields to the factories.

Lately, China’s been stepping in its Northeast Asian rivals’ shoes - Japan and South Korea. They started transitioning into the technology and services sector.

Fortunately for China, its workers’ skills, also referred to as human capital, have evolved at the same pace as its development phases. For an economy to grow, you need a big enough workforce with the necessary skills.

Human capital investment skyrockets in China

In the early 1990s demand for skilled employees skyrocketed as foreign investments increased. The graph below shows the rise in Chinese college admissions, particularly in urban areas.

Comments 23 Comments

Abdiel Jimenez
I just wish china would preserve their environment and become a democracy. I wish them all the best.
Iuan Juy
Russia is a democracy but it is still hated by the United States. Even if China becomes a democracy, it will still be hit by the United States. This is an excuse for the West to fight against China. The real reason is that China has incited the dominance of others.
Charles Liu
Lol. State designated industries, shadow banks, soes, bs startups and equally bs stock exchanges. it,s gonna be fun to watch it all implode. Time to make sure my investments have nothing to do with this place.
mahesh karthick
In 🇮🇳 (india) people still talking about agriculture. China 🇨🇳 is the next *SUPERPOWER*
jst a
it shows a sad future for the world
Can Dra
welcome to the dot com bubble china version .... human never learn
Oh my god this is the societal equivalent of being drunk, depressed and on eBay at 3am
Rainbow Le
Just look at their Shanghai stock Exchange now, Millions from those young peoples might be vanished already since the Trade war happened between USA & CHINA!
Desmond Low
This is great. At least they aren't channeling money to those religious sectors. It's about time to revolutionize the world with technology, and the outdated ideas have to go.
the last troll
Wow... Great documentary
Roger AB
So people decide wether a buissness is worth investing in on a matter of minutes? Not enough time for a person to do the apropiate research on their investment, this online investment banks better do their jobs right and not issue loans to every buissness in need they find, because they can clearly collect the money independently of the underlying asset's risk.
Bernard Evan Natividad
Growth industries my ass, this is just unrestricted gambling.
Green Hornet
These young people are discussing millions, where US is still hugging farming, aluminium and steel.
Unregulated financial sector.. OMG it’s the wild east. You can’t regulate a wild fire. Asians are big time gamblers.
Adrian H. Dragan
We're skrewd.....
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Inequality - how wealth becomes power Too Big For China | Startups - Full Documentary 6 months ago   41:51

Germany is one of the world’s richest countries, but inequality is on the rise. The wealthy are pulling ahead, while the poor are falling behind.

For the middle classes, work is no longer a means of advancement. Instead, they are struggling to maintain their position and status. Young people today have less disposable income than previous generations. This documentary explores the question of inequality in Germany, providing both background analysis and statistics. The filmmakers interview leading researchers and experts on the topic. And they accompany Christoph Gröner, one of Germany’s biggest real estate developers, as he goes about his work. "If you have great wealth, you can’t fritter it away through consumption. If you throw money out the window, it comes back in through the front door,” Gröner says. The real estate developer builds multi-family residential units in cities across Germany, sells condominium apartments, and is involved in planning projects that span entire districts. "Entrepreneurs are more powerful than politicians, because we’re more independent,” Gröner concludes. Leading researchers and experts on the topic of inequality also weigh in, including Nobel-prize winning economist Joseph Stiglitz, economist Thomas Piketty, and Brooke Harrington, who carried out extensive field research among investors from the ranks of the international financial elite. Branko Milanović, a former lead economist at the World Bank, says that globalization is playing a role in rising inequality. The losers of globalization are the lower-middle class of affluent countries like Germany. "These people are earning the same today as 20 years ago," Milanović notes. "Just like a century ago, humankind is standing at a crossroads. Will affluent countries allow rising equality to tear apart the fabric of society? Or will they resist this trend?”

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