Photo Credit: Ray Dalio, YouTube
How in the world are we doing as a nation?
As we watch what’s happening around the globe as well as looking inward at our country’s changing culture, how should we then live?
This week, a 43-minute video came to my attention which so fascinated me I shared it widely with friends and family…and now with you.
This YouTube video was created and narrated by Ray Dalio, founder of the hedge fund and investment firm Bridgewater Associates. It is entitled: Principles for Dealing with the Changing World Order – Ray Dalio. He takes history from the last 500 years and tracks it in a mesmerizing animation depicting the rise and fall of world empires.
What are the factors that move nations to become world powers? What also are the causes of the decline of these powers?
Photo Credit: Ray Dalio, YouTube
His video is essentially a summary of his 2021 book Principles for Dealing with the Changing World Order – Why Nations Succeed and Fail. Now if you click on the link to this book, and go to reviews, you will find not all the reviews are glowing. So take heed to the criticism.
Still, I loved this video because it was easy to understand for someone who isn’t much of a historian or, for sure, an economist. His explanation of what lies behind successes and failures of nations seems to line up well with what is happening in the U.S. for sure.
Photo Credit: Ray Dalio, YouTube
These screenshots from the video give you an idea of what you’ll find should you watch it. So good.
Dalio alludes to economic principles that we can apply to help our nation slow its decline as a world power and possibly even reserve it. He goes into these principles much more in his book, but the two he mentions in the video are quite simple:
- Don’t spend more than you make.
- Treat people well.
Ridiculously simple, but do we do them? We have had national debt since the start of the U.S. as a nation. However, in recent years our debt has wildly ballooned out of control. Also the whole “treating people well”? The last time we were able to pull together as a nation was probably the attacks of 9/11…over 20 years ago. The division in our country is so deep, it is hard to imagine our being able to come back together. It could happen…and I will keep hoping that’s the case.
Photo Credit: Ray Dalio, YouTube
On the graphic above, we see the steady decline of the US and the sharp rise of China. Is this the future? Or are other factors also at play? I think there might be…one in particular, the God of this universe. However, He may choose not to save the US from its own self-induced decline. Only time will tell.
[Postscript: There is a word of wisdom here: don’t spend more than we earn and treat others well. Sound counsel all around.]
Economic Principles – Website linked to Dalio’s best-selling book Principles for Dealing with the Changing World Order – Why Nations Succeed and Fail – including bonus content not in the book
Excellent write-up.
On Dalio’s “8 strengths and years from peak,” he puts an educational peak roughly 70 years before the nation’s peak.
I’ve been having that conversation with a number of people lately.
Post-Vietnam War, our education system began to de-emphasize civics/government. This arrived at a point in the 80’s where immigrants applying for citizenship knew MUCH more about the US Constitution and government systems than our own citizens did (which persists today).
A Senegalese friend recently remarked that you can’t intentionally change something you don’t understand.
I think much of our current cultural revolution and national dissatisfaction stems from a perception-turned-reality that we cannot influence our government nor policy-makers (who often sit just outside elected positions) in ways sufficient to accomplish the changes we desire.
If you can’t vote the change you want (with your ballot nor spending), what options remain?
We’re seeing the answer.
But even behind that, there is a representative-government aspect to the rise and fall of these nations considered. Come to Africa and see that a monarchy can be representative in the right conditions. But when ruling classes begin to serve themselves rather than the people, a fall is coming. It has been consistently inevitable. However, with the current rise of China, it seems their administration was able to kill enough people, keep firm enough control, and do enough indoctrination that their people have come to believe that their leaders are representative of them. So it is possible for nations to rise under authoritarian governments, but the cost is high.
Thanks for commenting, Shadrach. This adds so much to the discussion started above. I appreciate your insight as a global person who sees our world situation from a larger base. Whew! We need leaders in all strength realms to turn the tide.
Dutch empire? Where do you source your history info?
I was surprised as well. It was a thing. You can do a search or just read the sources in the body of the blog. Fascinating for me…sounds like also for you.