World Economy 101

Graph showing US, China and India shares of world output.Here is a graph that I think illustrates world economic history quite well in a very simple way. It takes three countries and charts their portions of the world economy over 2 centuries. The three countries are the US, India, and China. See the graph Output and Outlook

Ignore the conclusion of the Harvard Professor, Greg Mankiw, as he glowingly quotes Michael Milken of the Wall Street Journal. Both these guys are American apologist buffoons who overlook the obvious about the graph they are looking at.

In 1820 India and China held almost 50% of the world’s economic output between themselves, whereas the US had less than 2% of it. But just about then the US was importing slaves ripped away from the African continent by European imperialism. As this stolen wealth in human slaves accumulated in the US and was used as labor in agricultural production, the US portion of world wealth shot up, and later not even the Civil War could brake it.

And then, European imperialism began to spread its hooks and tentacles toward India and China, where they began to colonize the 2 regions. Now you see the swing begin downward in the Chinese and Indian portions of world wealth as they were bled drier and drier by the Europeans, and in the case of the Chinese also by Japan.

It is only in the 1980’s where China, and a lesser extent India began to recover some. That was when both societies began to recuperate themselves some from the destructive effects of colonial occupation.

Since the end of WW2, the European countries and the US have had to discard colonialism and embrace neo-colonialism, where the looting of other countries is done primarily through economic structures (banks and lending institutions), and not military ones of direct occupation.

Now with the Iraq and Afghanistan occupations, we see the US Empire beginning to return to using the old methods of traditional colonialism by direct military occupation to loot other countries’ wealth to enrich its own treasuries. Or at least, this seems to be the current direction where US government is now trying to implement its foreign policies.

Direct colonization by occupation troops does not have a recent history of being successful though, except in the case of the construction of the Jewish Apartheid state of Israel. The US occupation of Iraq is somewhat an extension and outgrowth of the Jewish occupation of Palestine, while the occupation of Afghanistan is more a remote fortress garrison occupation than a direct colonization attempt of any sort.

So what we have is the US Empire today directing a kind of hybrid imperialism where traditional colonialism is fused with neo-colonialism, and then again with a sort of return to the old colonial style fortess enclave structures, like the British and Portugese used to specialize in.

But now, we are off some from the theme of the simple educational graph that we linked to.

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