We might not notice it, but the world, is changing really fast:
Biotechnology, robotics, nanotechnology…every day, somewhere on Earth, some discovery is
being made.
Discoveries which will make our lives longer, more comfortable, and generally much better.
We could almost say, dear viewer, that we
are on board a high speed train bound for the future.
There are already incredible companies today, which look like they could have come out of
a science fiction movie: Want to have some examples?
Well then...
Are you familiar with Organovo?
It is a truly incredible company.
It's listed on the NASDAQ and its business is no less than the bioprinting of tissues
to implant in the human body and thus, eliminating the need for organ transplants.
Can you imagine printing a liver?
It's remarkable stuff.
And what about the company Modern Meadow?
This start-up's aim is to produce leather and meat without having to kill any animals.
They want to produce their own steaks in a lab and take them to the supermarkets.
The big question is though: Would you eat it?
And another example, have you heard of Illumina?
It is the largest company dedicated to DNA sequencing.
Among other targets, they are trying to detect cancer before any of the symptoms appear.
Almost unbelievable, isn't it?Well, these are only three of the hundreds of companies
which are literally building the future today.
But, you know what?
Organ printing, DNA sequencing…
That's not the best part, the best is that the end of poverty is getting closer every
day, and the reality is that it's already right around the corner.
And, listen, we aren't just talking about extreme poverty here.
On the contrary, current realities like hunger or not being able to eat meat or not having
access to health care - or even not being able to go on holiday - are going to be rare,
very infrequent in fact.
And this is going to be a reality in probably just a few years.
Alright, alright, now some of you might be thinking: Simon´s lost it!
It's all downhill for Visual Politik from here...
Well, no, I haven't actually lost my mind.
In fact, here, with all of you as witnesses, I am willing to bet you that in the next year
we will experience the best period of prosperity in the history of mankind...
And I am not the only one sharing this opinion.
Listen to what Warren Buffet, the investment genius, has to say about it:
Or Barack Obama, as well:
Well, I am here to tell you even more.
This wave of prosperity will bring opportunities we had never even thought of before.
But, alright, for the sceptics, here are the numbers:
It is estimated that, by the end of 2016, 3.2 billion people are going to already belong
to the middle class, and each year, more than 140 million people will make it into this
'select club'.
It is as if every year a group of people, the size of the population of Mexico, are
leaving poverty behind.
Note here that this process is accelerating and it's expected that by 2020, that's
just 3 years from the time this video going out, most part of the world's population
will belong to the middle class.
This growth middle class will mean that the poor will be in the minority.
But… before we continue, I am sure your might be wondering: how exactly do you define
the middle class?
Since income levels vary country to country, when we talk about middle class we are talking
about people who can afford to have a varied diet, people who can face and cover unexpected
expenses and education, and people who can buy an automobile.
These people might not be rich, but they definitely aren't poor any more.
And this is a new thing in the history of mankind.
So now that you have an idea of how things are changing today let's have a look at
the historical perspective:
When Napoleon was fighting everyone in Europe, only 2 million people could be considered
middle class.
That is less than half the population of Singapore today.
A pretty tough situation for the vast majority of people living at that time…
Well, since then, 150 years have passed, but it wasn't until the 1970s that the number
of people in the middle class passed the 1 billion people mark.
Today, the number is about 3 billion and, by 2021, it is expected to reach 4 billion.
And as I mentioned the process is getting faster and faster every day.
And this new middle class are going to make an impressive entrance.
Don't believe me?
Yep, the city you are
looking at is Hanoi, the capital city of Vietnam, the country in the world where capitalism
is most liked - that's according to a recent study from the Pew Research Center.
Seems like we in the West might have some catching up to do.
In fact, the majority of this new middle class are coming from Asia.
Almost 9 out of 10 new people who make it to the middle class live in Asia, the continent
of the economic booms, and the growing epicentre of power on Earth.
You just have to take a look at countries like the Philippines or Thailand.
In just a few years, these countries' middle classes will be as big as those in the UK,
France and Italy.
Yes, they will remain poorer countries, but the growth of the middle class is still very
impressive!
But do you want to know how things are really changing?
Well, this is Jakarta…
And think about what this means for the companies!
But that's something we're going to look into later…
However, of all these countries, one is making a big difference: And that's China, whose
middle class has exploded.
According to the estimations by McKinsey analysts, if in 5 years this amount of people were to
create, say, the Chinese Republic of Middle Class Citizens, this country would be the
third most populated country in the world.
Not bad, ayy?
So if you want to know what these changes really mean, take a look at Chongqing, the
most populated city in China:
Because of the growth of the middle class, these people now have money available to buy
all kinds of products: clothing, electronics, cars, and, of course, travel.
And, now you can probably understand why the countries in Asia, especially China, are so
important for multinational companies.
Pay attention to this data, because it may be interesting if
you are thinking about starting a business:
It is estimated that the spending growth of the Chinese in the next four years alone,
will exceed what the British or Germans spend.
So, if you, our VisualPolitik friends, have a company, you might want to think about investigating
the Asian market, because many opportunities will appear in the next few years.
But the consequences of all this aren't just an opportunity to make money and to do more
business.
Probably, the most important consequence of all this middle class expansion is that we
will live in a happier world.
Let me explain…
You've probably heard the phrase: "Money doesn't make you happy"?
Well, actually according to recent research, that is not entirely true.
In 2010, Angus Deaton and Daniel Kahneman, both winners of the Nobel Prizes in Economics,
presented a paper which proved that up to the figure of $75,000 dollars a year, happiness
and income were very closely related.
Meaning, more income equals more happiness (up to $75,000 a year).
It makes sense, with more money you don't have to worry about making it to the end of
the month, paying your bills, not having enough to eat, not being able to take your family
to the doctor etc etc.
So, according to these two academics, the expansion of the middle class is leading towards
a happier world.
But wait, there's more…
More middle class means more educated people, more researchers, more entrepreneurs, more
ideas, more innovation and, therefore, more progress.
Well, today in China, there are more college students than in the United States.
Remember the companies we saw at the beginning of the video?
Well, soon enough there are going to be plenty more of those.
Now, you may be wondering: if it is all as wonderful as they are describing at VisualPolitik…
How come people such as Donald Trump and Le Pen are so popular?
Well, this middle class boom is not happening in all parts of the world.
Therefore it is important we understand that if the Western economies aren´t working perfectly
or are having problems, they should take responsibility for it and stop blaming it on the other countries.
There are plenty of opportunities in the global economy and now is the time to adapt and seize
them.
But, I can guess what you're thinking: is all of this growth really sustainable?
Won't all this progress and development destroy the environment?
Or cause other problems.
Well, that's not very clear.
Now it is true that in theory, more middle class means more spending and, therefore,
more consumerism, more pressure on natural resources etc… but there are some things
to consider:
First: more middle class also means more people in big cities, and the consumerism here is
usually more sustainable.
Transport is the most evident example: While public transport is frequent in large cities,
it is rare in small places.More middle class also means faster demographic transition,
so more women study and work so the population tends to shrink as well.
And, above all, more middle class means, as we said before, more ideas and more innovation
and, among these, are often ideas which allow more sustainable consumerism.
So, however we want to approach the situation, and although there certainly a lot of room
for advancement and improvement…
We think that this is really a time in history where we should be feeling rather positive.
But, that's our opinion here at Visual Politik, but what do you think?
Do you believe we are moving towards a better world?
Do you think Asia can be a land of opportunity and business?
Let us know in the comments below!
We'd love to hear your thoughts.
And if you enjoyed this video please hit that thumbs up button below, and don't forget
to subscribe for brand new videos every Monday and Thursday.
And, as always, I'll see you in the next video.
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