Why Are Cold Countries Richer Than Hot Countries?

The video explores the correlation between climate and economic prosperity, highlighting that colder countries tend to be wealthier than hotter ones. It discusses statistical analyses showing a negative relationship between temperature and GDP per capita, with an R-squared value indicating temperature accounts for 9% of economic prosperity. The video addresses outliers and the importance of distinguishing correlation from causation. Various theories are presented, including economic selection and historical shifts in wealth determinants. The conclusion emphasizes that while climate has played a role, every country has potential regardless of its climate.

How did the relationship between temperature and wealth change over the last 2000 years?

What role does human behavior play in the economic outcomes of colder versus hotter climates?

Reflect on the statement: 'Every country has its potential regardless of what the weather is outside.' What does this imply?

In what ways can understanding the correlation between climate and economy inform modern economic policies?