Transcript
We just struck gold. Metaphorically? No. For real. This is awesome for our poor agricultural country. It's over. Like like our struggles are over? See, there's a pattern when countries strike you rich by finding shiny rocks or oil. It's often bad in the long term. It's called the resource curse. How could it be bad? Well, a country starts depending on this one industry for everything. First, there's often this slide towards authoritarianism. The government starts getting money directly from the gold mining companies. It's no longer dependent on taxpayers. So who cares if we're happy? Second, the currency shoots up in value. That's gotta be good. Yeah. Good for the people here buying things from other countries. Each dollar buys more. But look at domestic industry like farmers who sell their grain to other countries. A stronger currency means it costs the rest of the world more to buy from us, so they buy less. Hey, what are those guys doing over there? That's the third thing, conflict. See, maybe other countries or different groups within our country suddenly feel they have a claim on our land. Or maybe just industrialized countries wanna secure their own economic interests in our gold mining through military force. Either way, we're dead. Metaphor. Well, Norway, when they struck oil, they decided to put all their oil money in an oil piggy bank called the sovereign wealth fund. They yes this fund to invest in their other domestic industries and best it overseas so no one could really go crazy with it. So basically, unless we do that, we're this isn't good. This is a candy wrapper. No isn't.