Germany just became the 3rd largest economy
But why is it so rich?
Work ethic?
Here's a huge factor: Geography 🧵
If there was something special about 🇩🇪, we should be able to tell it in the regional GDP numbers: It should stand out. But no: regions of neighboring Netherlands, Belgium, Luxembourg, England, and Northern Italy are as rich or richer
Why are Denmark and the Netherlands richer than Germany in terms of GDP per capita if Germany is so well run?
If the country's productivity was exceptional, we should see it on satellite maps of nightlights—strong proxies for wealth. But see how Germany compares to Haiti/Dominican Rep or North/South Korea:
Can't tell the border in 🇩🇪, it's obvious in the others!
It's not 🇩🇪, it's the region. Something is making it rich. What might it be?
Let's look at a map: What do these regions have in common?
Flat
➡️Cheaper infrastructure
➡️Easier to irrigate & produce food
➡️More ppl
➡️More wealth
But Poland & France are also flat but poorer. Why?
There is something else: navigable rivers.
The region of northwest🇩🇪/🇳🇱/🇧🇪 has the highest density of inland navigable waterways in the world. And also the highest density of wealth in the world. Is it a coincidence?
Lots of these waterways today are artificial canals, but the region also has the highest density of naturally navigable rivers
➡️irrigation
➡️sediments (more fertile land)
➡️Cheap transportation
➡️Trade
➡️Wealth
➡️Infrastructure
➡️Cheaper transport
...
The importance of inland waterways was known a long time ago. Eg, the Emperor Charlemagne built the 1st canal in the region... in 800 AC! (Fossa Carolina, pictured below)
It connected the Rhine basin with the Danube basin
But why are there so many navigable rivers in this corner of the world?
The Earth's rotation create, warm currents ("Gulf Stream") from the Caribbean toward Northern Europe, warming it up
The Earth's rotation also pushes warm winds in the same direction
Warm ocnea + warm winds➡️They load up on moisture, which falls as rain on Europe. That's why this region has so much rain and so little sunlight
Red: no rain
Blue: rain
Purple: lots of rain
🇫🇷🇧🇪🇳🇱🇩🇪 get lots of rain
More rain➡️More farming productivity➡️More wealth
But notice where most of the rain falls?
On the many mountain ranges—especially the huge Alps
They stop the winds and catch their moisture, which falls as rain or snow, stored in snowpacks
The snowpacks slowly release the water through the year, stabilizing the rivers
And why are there so many mountains there? Because of plate tectonics: The African Plate hits on the Eurasian Plate
Southern Europe has more mountains & less flatlands ➡️It's poorer
It's not work ethic (northerners work less, as you can see)
It's geography
And why is the north so flat? Because it's very old terrain, flattened over eons—especially in the last few ice ages
Flat lands with rain
Rivers bringing sediments and water
Perfect conditions for an amazingly fertile land
Germany has among the most productive fields in Europe!
The tech revolution of the Middle Ages improved its productivity with the heavy plow, horseshoe, & horse collar
Flat also means it's much cheaper to build infrastructure: roads, railroads, housing... So ppl can build faster and cheaper, accelerating growth
So:
🌍Rotation of Earth➡️Rain🌧️
🌋Plate Tectonics➡️Capture rain & store in snowpacks
❄️Ice Ages➡️Flat northern plain
➡️Navigable rivers+Cheap infrastructure➡️ Trade ➡️ Wealth💰
➡️Easy irrigation & sediments➡️Food surplus➡️Population🧑🤝🧑
Population + Wealth➡️Huge economy
And that's not it! See the Ruhr region here, one of the wealthiest in the world?
It has one of the best coal mines in the world
So when the Industrial Revolution arrived to 🇩🇪, it had the coal, the workers to mine it, and the rivers to transport it
And it's not just the Ruhr's coal! Germany has had great mines throughout history, because the same mountains that gave it water also gave it mining resources
Many of these assets are shared by 🇳🇱🇧🇪🇫🇷, and hence why they're also very rich (and even richer than 🇩🇪)
It's also not a coincidence that Poland, just to the east, is growing the fastest in Europe, now that it's unshackled from bad mgmt & occupations
So why is Germany so rich? Many factors, but the huge one that few mention is that it got lucky with its geography
Enjoyed this? Follow for more! Soon Poland, France, Mexico & more!
If you’re going to write “no it’s because Japan went down”, do a favor to yourself and pause for a second to think a few steps ahead
Why was 🇩🇪 4th to begin with?
Why so resilient in the longer term?
Think for than months. Think centuries.
Also: No, geography is not the ONLY factor
It's the most UNDERRATED factor
If I thought it was the only factor, I wouldn't have made this gif last week, showing how different political mgmt can have heavy consequences:
This remote corner of the US has something unique that might soon make it one of the most important cities in the world—the city of the future. It is officially Boca Chica today, but it might soon become Starbase 🧵
This point at the south of Texas is the southernmost point in the continental US
That is extremely useful for rockets
The biggest share of weight in rockets is fuel. Most of it is burnt just to carry the rest to orbit! Rocket makers do anything they can to reduce fuel consumption
2. Los Angeles:
• Trading hub between the world (Pacific) and the US (railways)
• Weather + biggest coastal valley on the Pacific➡️agriculture & cheap building
• Oil
• Landscapes + far from the East Coast centers of power➡️Attracted the film industry
People think we must shrink the world's population to be happy, but they're wrong
A world with shrinking population would be decaying, poor, brutal, violent, hopeless
A world with 100 billion people would be dynamic, rich, innovative, peaceful, hopeful
🧵
1. In the last 2 centuries, the world got better as the population exploded:
• Richer
• Live older
• Lower child mortality
• Fewer homicides
• Fewer war deaths
• Fewer hours worked
• Lower share of poor people
And much more: fewer infections, diseases, accidents. More racial equality, sexual equality. Instant access to all the knowledge in the world. We can go anywhere, whenever we want...
We can raise our population on Earth from 8 billion to 100B humans if we want to
Would we starve?
Be too crowded?
Would pollution explode?
Ecosystems collapse?
No! Don't believe alarmist degrowthers. This is why they're wrong: 🧵
Degrowthers put a label to "how many humans can the Earth sustain": carrying capacity
Their estimates vary wildly
Wait, what? What a surprise, the mode of their estimates is 8B—exactly the current number of ppl on Earth
WHAT A COINCIDENCE!
Or they lack imagination: OMG the Earth is already on the brink. Surely not one more soul fits here!
And then they try to find out what limits we might be hitting. Their most common fears are: 1. Room 2. Food 3. Water 4. Energy 5. Pollution 6. Resources
Let's look at each:
Can desalinated water deliver a future of infinite water?
Yes!
• It's cheap
• It will get even cheaper
• Limited pollution
• Some countries already live off of it
We can transform deserts into paradise. And some countries are already on that path:🧵
Crazy fact:
Over half of Israel's freshwater is desalinated from the Mediterranean!
And the vast majority of its tap water is desalinated too!
And it costs less than municipal water in a city like LA!
It's not the only country. Saudi Arabia is the biggest desalinator in the world. 50% of its drinking water is desalinated. It's 30% in Singapore, a majority of water in the UAE...
What if we applied this, but at scale across the world?