I often catch myself assuming things are how they have always been. But that is not true. And economic growth is the main differentiator. Long term views show how small differences in growth compound over time, and lead to very different worlds. Here are some examples:
Germany
Around 1990, Germany was about as rich as the US. One reading: Today Germany could be as rich as the US. They were somewhat close again around the financial crisis of 2008. But since then, the US has taken off. Especially painful to see is Germany's performance in the last five years: It's economy has either stagnated or declined. Meanwhile the US kept growing.
Taiwan and China
Around the middle of the 20th century, Taiwan was about as rich as the Philippines. Today, the gap between the two seems insurmountable. How is this possible? Economists have many theories that try to explain this. And there are different growth models that different countries used to achieve it, South Korea probably being the most famous example. It is also not difficult to name some factor on which growth depends (i.e. you need stable institutions, guaranteed property rights, then you need to ascend the value chain in production, etc.). The difficulty is to find the most relevant ones.
The same path divergence is true for China and many African countries. They used to be on relatively equal footing, but since then, China has clearly separated itself from most of Africa. Was this inevitable?
More than any other country, China has lifted millions out of extreme poverty from 1981 to 2020. Every day, for forty years, it lifted at least 50.000 people out of extreme poverty.
Poland
Poland is another growth success story. Since the implosion of the Soviet Union, it has grown at a rate of around 3.30% per year. The GDP per capita rose by $30000 in that time. That is truly impressive. With its current trajectory, it might in time even surpass the UK in GDP per capita. Many Germans have not updated their views on Poland. They still think of it as a poor neighbour country. Here is a good article on how they achieved this impressive growth. I look forward to visiting Poland for the first time.
More
There is a good article by Our World in Data about the importance of economic growth. I think especially for modern democracies economic stagnation can turn into a liability. If there is no overall growth, then the economy becomes a zero-sum game: If one wins, then the other loses. Economic growth, on the other hand, makes for a win-win situation. Even when critics argue that not everybody benefits equally, the benefits eventually trickle down the population. As the saying goes: A rising tide lifts all boats.