William China, Europe, China William discussed on The Indicator from Planet Money

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Holland used bonds to build dikes western Europe started growing at an unprecedented rate. In fact, says William China which had been leaps and bounds ahead of Europe in terms of wealth, and technology started. To fall behind partly because of the money raised through government bonds at this time in the eleven hundreds and twelve hundreds Europe was really a backward place compared to China. The Chinese did not have this financing technology. They didn't bonds. So after about fourteen hundred Europe takes off compared to China by many different kinds of measures. Eventually the industrial revolution occurs in Europe. But not in China William says bonds helped western European economies grow at the speed. They did. And to the scale they did in the US bonds helped fund the revolutionary war and build railroads out across the undeveloped. Prairie of course, bonds had their fair share of problems too. I mean, they make it really easy for governments to take on a lot of debt and people have gotten used to thinking of them as a really safe investment during the financial crisis countries like Portugal, Greece Spain and ironically, enough Italy took on way too much debt and got their Connie's into a lot of trouble. Even still bond sales continue to be crucial for governments to fund their operations. In fact, last year, the US raised about one point three trillion dollars through government bonds, the most since two thousand ten and it was all thanks to this innovation from Venice in the eleven hundreds. The indicator is produced by Dr Rath Jaen edited by paddy Hirsch, our intern is willa Ruben and the music you're hearing is actually from twelfth century Italy. It's performed by the on samba or Ghanem. Whether it's athlete protests, the Muslim travel ban gun violence, school reform or just the music. That's giving you life right now race is the subtext to so much of the American story and on coats, which we make that subtext text. You listen to us on NPR one or wherever you get your podcasts..

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