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Welcome to Keith's night. 
Don't tread on anyone in the 

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libertarian Institute. 
Here is an excerpt from why it's

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okay to want to be rich by. 
Dr. Jason Brennan in a section 

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titled against the resource 
Theory. 

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The great grandma's pie thought 
experiment makes it seem as 

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though the reason some countries
are rich and others are poor, is

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that rich countries have more 
and better natural resources 

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than poor countries call this 
the resource Theory National 

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borders are in some sense, 
Marley. 

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A arbitrary contingent somewhat 
random outcomes of historical 

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circumstance, but the resource 
Theory holds through good 

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historical luck. 
Some countries end up with good 

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resources and others bad. 
Those with good resources become

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rich and those with bad 
resources, become poor, 

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philosophers, historians And 
Delay. 

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People often just assume the 
resource. 

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Theory is true, but economists 
have subjected the resource 

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Theory to rigorous empirical 
Whitney and the theory doesn't 

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hold up Economist David while 
summarizes the vast empirical 

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literature in his widely used 
textbook economic growth. 

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The effect of natural resources 
on income is weak at best. 

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Indeed. 
Even the capacity to discover 

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natural resources. 
Depends upon institutions 

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countries with market-oriented 
institutions are far better at 

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discovering their natural 
resources than countries with 

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Nan Market institutions. 
As for instance, China after the

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1850s was and remains poorer in 
per capita income and other 

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standard measures than Singapore
or Hong Kong though. 

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The latter have almost no 
natural resources to speak of 

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the USSR, remain poorer than the
United States. 

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Throughout the 20th century 
though. 

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The USSR had far better, natural
resources, North Korea remain 

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poor. 
While South Korea became rich 

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though the north started with 
more Industrial. 

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Passivity and better mineral 
resources in Adam Smith's time. 

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The Netherlands and England were
richer than France though. 

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France had far better natural 
resources while the Netherlands 

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was largely composed of land. 
Reclaimed from below sea level. 

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And so on indeed, while natural 
resources can sometimes induce 

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growth. 
They far more frequently. 

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Inhibit growth economists, refer
to this problem as the resource 

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curse countries with a High 
concentration of easily 

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extractable natural resources 
frequently suffer from economic 

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stagnation. 
There are competing theories of 

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just why the resource curse 
exists though, to be more 

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precise. 
These theories are largely 

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compatible with each other and 
might be identifying joint 

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causes one Theory, holds that 
countries with abundant natural.

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Resources. 
Do not develop the cultural 

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attributes necessary for 
economic success. 

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Another theory. 
Is that countries which enjoy 

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resource booms tend to just 
consume the sudden influx in 

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come in. 
An unsustainable way. 

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They don't develop Capital, but 
eat away the extra income until 

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it's gone. 
Another theory. 

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The Dutch disease Theory holds 
that a sudden abundance of 

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resources leads to contractions 
in manufacturing. 

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Finally, the most popular Theory
today, or the theory thought to 

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identify the most significant 
cause is that when a country 

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enjoys abundant resources, this 
encourages government to act in 

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destructive ways, government 
officials can just extract 

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resources for their Own selfish 
ends and can afford to ignore or

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oppress their own people 
fighting over control of the 

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resources, can lead to Civil War
or more simply governments, 

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might create unsustainable 
welfare programs programs. 

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They can only afford so long as 
resource commodity prices, stay 

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high C, Venezuela for a recent 
example, regardless, while lay 

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people often accept the resource
Theory, economists largely 

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rejected, the evidence goes the 
other way in a different section

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of the The book Brennan 
summarizes. 

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What economists? 
Generally think in a section 

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titled, the institutional 
theory? 

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He says rich countries are rich 
because they had institutions, 

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which encourage growth poor 
countries are poor because they 

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had institutions which inhibit 
growth. 

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So which institutions promote 
growth, economists debate, the 

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fine details of these questions.
Nevertheless, the basic 

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consensus is that countries need
a a robust protection of private

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property, be open and free. 
See the rule of law. 

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Enforced and D stable and 
inclusive governments countries 

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such as Switzerland Canada, 
Denmark, Singapore or Hong Kong 

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which adopt these institutions, 
nearly always become rich, the 

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countries that lack. 
These institutions nearly always

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remain poor further as 
countries. 

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Move towards these institutions.
They become richer when they 

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move away from these 
institutions. 

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They become poorer. 
Thank you for watching Keith 

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Knight. 
Don't tread on anyone links to 

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the Silent book. 
Why? 

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It's okay to want to be rich by 
Jason, Brennan will be in the 

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description below.