How does the world get richer?

Question

If a poor country in Africa becomes rich, wouldn’t they need to get money elsewhere? Thus making the other place more poor?

In: 1

Answer 1

Because money isn’t wealth.

Let’s assume a tiny, enclosed system. An isolated country, no more than a field, that never printed more than 100$ in their currency. You are one of the richest citizens in this barren country, holding 50$. You decide to spend your whole 50$ on a building company to create a house for yourself. Now they have your 50$ – but you have a house worth 50$. The total amount of currency in the country has stayed the same, but you have generated 50$ of wealth courtesy of the building company’s labour.