Ever noticed how the world’s richest countries tend to have colder climates? Germany, Switzerland, Norway, and Sweden all have high GDP per capita, while many hotter regions—like Sub-Saharan Africa, Central America, and Southeast Asia—face economic struggles. Studies even show that for every 1°C increase in a country’s average temperature, GDP per capita drops by $762 per year! The reasons? Harsh winters may have pushed colder nations to develop stronger infrastructure, better governance, and long-term planning. Meanwhile, extreme heat can impact productivity, agriculture, and even health. 🌍❄️🔥 Animation is created by Bright Side.
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00:00For every 1.8 degrees Fahrenheit increase in a country's average temperature,
00:05the GDP per capita drops by at least 1.1%.
00:10To put it simply, with every step you take from the North Pole to the equator,
00:15not only do you get hotter, but you also get poorer.
00:20Even though life in freezing cold countries can seem miserable,
00:2474.2% of the world's billionaires are concentrated in the global north.
00:30And there are at least four theories explaining that.
00:34The simplest theory is tied to biology.
00:37Cold weather is believed to keep germs away, leading to better health and productivity.
00:42Sounds good, but I'll challenge that later.
00:46Next, there's the sloth theory from ancient Greece, and it's more about climate in general.
00:52Greeks believed their ideal weather made them wealthier,
00:55while hotter regions were seen as less creative.
00:59The third idea is based on economic and anthropological studies.
01:04You see, experts noticed some time ago that colder countries have inclusive institutions
01:10that offer equal job and life opportunities and protect markets and private property.
01:15Naturally, such conditions promote healthy competition and boost wealth.
01:21The last idea is tightly connected to the previous one.
01:25Long story short, richer countries tend to distribute money better because they're more inclusive.
01:31Poorer nations often have extractive institutions where a powerful elite controls wealth.
01:38While all of them seem plausible, the truth is, these ideas are borderline insane.
01:46Well, you know the theory claiming that cold climates eliminates germs
01:50and the population of colder countries doesn't get so sick?
01:54I don't want to be the bearer of bad news, but the cold actually makes germs thrive.
02:00In the cold, we tend to stay inside with the whole house shut,
02:04so we share germs with each other more easily.
02:07Not only that, but during winter, the air is drier,
02:10creating the perfect environment for the flu virus to flourish.
02:14Humans are also more resistant to viruses and bacteria from their own environment
02:18because the constant contact with them makes our immune system stronger.
02:23If you look back at your history classes,
02:26you might remember that most British people struggled with the weather and bacteria found in America,
02:31while Native Americans themselves were mostly fine.
02:36And what about the sloth theory?
02:38Sorry, I don't mean it to sound offensive,
02:41but some specialists, ahem, they claim that, ahem, people in hotter countries tend to be lazier.
02:49But the truth is, the sun doesn't make us work less.
02:52Yes, the sun can make you a bit slower because you can dehydrate,
02:56but you see, the human body is biologically adapted to the climate of the place they're born in.
03:03This means that if you live in Canada, for example, you can endure the cold just fine,
03:08but Brazilians will probably handle hot days better than you.
03:13But if the sloth theory was true,
03:15how would you explain that people in Colombia work about 200 hours a year more than those from the United States?
03:23In fact, if you live in Cambodia, Myanmar, or Mexico,
03:27you're bound to work more than anyone in the world.
03:31Besides, hotter countries have a genius way to fight off laziness.
03:35It's called siesta.
03:38After lunch, it's normal to feel a bit sleepy,
03:41and if you have heavier meals, like the Spanish and Italians do,
03:45you'll get extra slow.
03:47This is why after lunch they usually have a siesta,
03:50also known as a quick nap,
03:52which improves your memory and thinking skills.
03:56It may sound like a siesta makes you work less,
03:59but people who nap after lunch simply work at different hours of the day.
04:04While you make shorter lunch breaks and go home at 6 p.m.,
04:07in Spain, the lunch break lasts two hours,
04:10and the workday ends at 8 p.m.
04:14They work when it's not so hot outside,
04:16and even get to take a power nap.
04:19The past is also crowded with people who lived rich lives despite the scorching sun.
04:25The ancient Egypt civilization may have existed thousands of years ago,
04:29but they were one of the richest civilizations ever,
04:32even though they lived in a place that was super hot and super dry.
04:38We also have the Aztecs,
04:40who lived in Mexico back when Mexico didn't exist yet.
04:44This region is not so famous for its cold weather,
04:47I can tell you that,
04:48but the Aztec civilization still managed to have a capital
04:51that was bigger than London, Paris, and Madrid of the time.
04:57On top of that,
04:58many of the inventions we have today that make a lot of people rich
05:02were created thanks to math and science.
05:05Two things born in hot places,
05:07like Mesopotamia and India.
05:11Now, to make all those economic and anthropological studies sound simpler,
05:15let's start with the most obvious part.
05:18It's true that hotter countries usually make money out of their natural resources.
05:22They don't have such strong industries,
05:24and the money is concentrated in the hands of the elite.
05:28All of this reduces the GDP,
05:30that thing that estimates whether a country is wealthy or not.
05:34Remember we said richer countries have inclusive institutions?
05:38These institutions are basically laws
05:40that make sure people have equal job and life opportunities,
05:44including nice houses and a good salary.
05:47Poor countries are not very good at this inclusive institution thing,
05:52but it's not by choice.
05:54This is actually a consequence of the age of exploration.
05:58In case you were sleeping during your history classes,
06:01let me remind you.
06:02The age of exploration is that time between the 15th and 17th centuries,
06:07when many kingdoms in Europe were exploring the seas
06:10and setting up colonies all over the world.
06:13I know it feels like this was a long, long time ago,
06:16but many countries that were colonies back then
06:19only became independent during the 20th and 21st century.
06:24This is why many poor countries don't have solid industries and markets,
06:28because their institutions and laws date back to when they were still colonies,
06:32and their years as colonies depleted resources
06:35and didn't provide a good infrastructure.
06:38Besides, saying that private property reduces the income and inequality gap
06:43is kind of absurd.
06:45It's true that developing countries like Brazil and South Africa
06:49are highly unequal,
06:51but in the US, for example,
06:531% of the richest people in the country
06:55make 139 times more money than the poorest part of the population.
07:01And there were more than 700,000 homeless people in 2024.
07:07Besides, 1% of the world's population
07:10is wealthier than the rest of humankind put together.
07:14If inclusive institutions were really that powerful in richer countries,
07:18then there wouldn't be more than 1 billion people
07:21living in acute poverty all over the world.
07:24There's no point in saying that private property makes everyone's lives better
07:28if people can't even afford to have a house in the first place.
07:31And using the GDP to calculate the wealth of a country
07:34is not exactly the best way to understand poverty,
07:38because the GDP only considers how much money the industry itself makes.
07:43It ignores, for example,
07:45the question of whether people who work in those industries have good jobs
07:49if they are well-paid and have a good life.
07:52The GDP also ignores inequality,
07:55which means it ignores those inclusive institutions we mentioned before.
08:01In the United States, there are about 835 billionaires,
08:06but 11% of the American population is still very poor.
08:11So, my hot take here is that inclusive institutions are not that inclusive,
08:17and that money is not that well distributed in the first place.
08:22Different cultures also have different concepts of what it means to be wealthy.
08:27In London, for example, being able to afford food, clothes, and shelter
08:32does not make you rich.
08:34To them, you're simply surviving.
08:36If you want to be truly wealthy in London,
08:39you might have to hire a housekeeper, buy a horse,
08:42and have a personal Pilates instructor.
08:45But to the Awa or the Yanomami tribes, money doesn't even exist.
08:50They produce only the necessary,
08:52and if they have a surplus, they will trade with other tribes.
08:56I guess the fact that poor countries are all located closer to the equator line
09:01is not just a simple historical coincidence.
09:06That's it for today.
09:07So, hey, if you pacified your curiosity,
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