What is the wealthiest country in the world?
Critical Analysis
Find answers to the following questions using the visual above, any links below, your big brain, and your knowledge of American government and politics:
Measuring GDP involves counting up the production of millions of different goods and services—smart phones, cars, music downloads, computers, steel, bananas, college educations - produced in the current year—and summing them into a total dollar value. It’s basically the economic value of a country. Identify three of the countries with the highest GDP per capita (per person).
In 2021, what was the approximate GDP per capita (per person) in the U.S.?
Identify two continents with very high average per capita GDP.
Identify two continents with lower average per capita GDP.
Draw a general conclusion about the geographical division of wealth in the world.
China has the second highest GDP (economic output) of any country: $17 Trillion. But their per capita GDP is only $17,603, far less than that of Mexico. Explain whether GDP or per capita GDP is a better way to judge the economic success of a country.
The United States has the world’s largest GDP: $25 Trillion; but it’s per capita GDP is less than Luxembourg: 115,683, Singapore: $106,032, Ireland: $102,496, Bermuda: $80,271, Switzerland: $71,033, United Arab Emirates: $69,734, Cayman Islands: $67,500, Norway: $65,662, and Macao. How would you describe the wealth of the U.S.?
In 1776, Scottish philosopher Adam Smith published perhaps the most influential work in the history of economics: An Inquiry into the Nature and Causes of the Wealth of Nations. This book, usually referred to as “The Wealth of Nations,” tries to answer the question: Why do some countries grow rich while others stay poor? Of course, you wouldn’t ask why Antarctica is poor! It’s in a terrible location, with horrible climate, and no easily exploitable natural resources. But it is interesting to ask why some neighboring countries are so much wealthier than others. Scholars have proposed numerous explanations for what increases a country’s level of economic wealth, including its location, geography, natural resources, free trade, investment, climate, health, education, financial market development, and good government. Make a claim about which of the reason for economic prosperity listed above is the most important.
Smith answered his own question with his book’s conclusion. “Little else is required to carry a state to the highest degree of opulence from the lowest barbarism, but peace, easy taxes, and a tolerable administration of justice; all the rest being brought about by the natural course of things.” In other words, after the basic natural resources and geographical advantages a country is born into, the institutions of a nation (its governance) are primarily responsible for its prosperity. Explain whether you agree with Smith’s conclusion.
Because no one and no country decides the level of wealth they are born into, what should rich countries do for poor countries?
Write and Discuss
Take ten minutes to write about the question at the top of the page and then discuss with your classmates.
Act on your Learning
In person or on social media ask ten people if the United States is the richest country in the world. Compile their answers, explain your answer to them, and then share what you learned in class.
Get Creative
Imagine a world where wealth is more or less equally distributed. Describe what that world would look like.