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How Did the World Come to Look as It Does Today? - Coggle Diagram

- - - - GDP
        
        Nominal: The sum of the value of all the goods produced in a country in a year
        
        Per capita: Divided by the country's population to show the average income of a person
        
        Real: Using the value of the currency from the same year in different times so inflation doesn't affect the variable
      - Disposable income
        
        It measures the amount of money that people can buy without going into debt.
        
        It is calculated by adding all the money that a person makes, and subtracting all transfers made to others, including taxes.
      - PPP
        
        Measures the purchasing power of people in a country taking into consideration prices in the country.
    - - The elephant graph
        
        Shows the income levels that gained the most from
        
        Shows the change in income over time for every income level
        
        And the income levels that will be affected the most by
      - The hockey stick
        
        Shows the fast increase in economic growth that started in the 19th century for most countries
        
        Starts changing with the
- - - - Hasn't worked well historically
      - Usually outperformed by capitalism
      - There is no way to prove that it will never work well
    - - Was caused by
        
        The capitalist revolution
        
        Accelerated
        
        The industrial revolution
        
        Accelerated
        
        Technological progress
        
        Caused
        
        Globalization
        
        2 more items...
        
        Automation
        
        caused
        
        Climate change
      - Is characterized by
        
        Institutions
        
        Private property
        
        Property that one can exclude from others
        
        It can be traded
        
        Market
        
        Where people willingly exchange private property for mutual benefit
        
        Is regulated by
        
        Competition
        
        Firms
        
        Were caused by the separation of
        
        Capital goods
        
        Land
        
        Labor
        
        Is bought by paying a salary
        
        People who could only sell their labor lost
        
        3 more items...
        
        With capitalism, specialization increased
        
        Are a way of organizing production where
        
        Employees provide
        
        While the owners provide the
        
        Have the purpose of producing goods to sell in the