Ever since the first century, all humanity had been worked for their personal gain and prosperity. After industrial revolution, most of the states gave priority to boom their national wealth which indicates how fast or slow the economy is growing or shrinking. GDP graphs help us to understand profoundly that how was and is the world economic situation and people’s financial wealth.
First of all, national wealth has increased relentlessly by industrial revolution. From first century to beginnings of ninetieth, mass production was rare, agriculture was usual to feed people. However, agriculture and other small businesses did not add richness to human kind. If we look at the graph, as usual GDP per capita is under one trillion dollar until 19th century. That means, humanity has been rich for two hundred years. Before this time, they were in poverty and Incomes remained almost unchanged over a period of several centuries when compared to the increase in incomes over the last 2 centuries. From the long-term perspective of social history, we know that economic prosperity and lasting economic growth is a very recent achievement for humanity. Due to the fact that total dollar value of all goods and services produce has scaled up tremendously, we mostly go over recent centuries.
Secondly, when economy is expanding, the GDP rate increase, conversely, when it is narrowing the GDP rate goes down. Despite the fact that world GDP rate diminished between some years, generally it tends to boom from its earliest days in the chart. After 19th century, there are recessions in the world economy and we call it world economic crises. World economy had been expanded by the time I. and II. World wars. since the wars happened, the world financially disrupted. From that time to 1973 petrol wars, countries’ GDP had come to climax but petroleum problem had affected the world GDP negatively.Similarly, 2008 economic crises had influence it negatively and growing rate narrowed a bit. Aside from these essential events, World has been expanding since 1st century in terms of economy.
To sum up, the GDP growth rate is the most important indicator of economic health of people and countries. Even if only interpreting a GDP chart, for instance I may comprehend financial environment of people lived in 2nd century.
Between 1st and 19th century, human being had suffered from poverty and inadequate resources, but industrial revolution eliminated this destiny. The World Economy have a penchant for developing since two hundred years. Because of that, focusing on the recent centuries will set out correct thoughts about the world prosperity.
-- Umut Şimşek