The insight emphasizes the historical timing of nations getting rich, indicating that most enrichment occurred in the last 150 years. It highlights that before 1870, despite plunder and military force, people in the United States and Britain lived incredibly poor lives. It presents a thought-provoking analogy of shooting a neighbor for $40 to explain the difference between relative and absolute wealth, concluding that understanding this concept is crucial.
Did nations get rich on the backs of other nations? Did the West get rich from imperialism? Noah Smith says no. But why not? If you can steal stuff, isn't that better than having to make it yourself? Listen as Noah Smith and EconTalk's Russ Roberts discuss the impact of imperialism and industrialization on growth and wealth. Smith argues that understanding plunder and where wealth comes from is more than an exercise in economic history--it matters for today's world, too.