Labor incomes in rich countries are higher than in poor countries because rich countries have a larger capital stock to work with.

After many generations of saving, investing, and building a productive capital stock, the marginal productivity of labor is substantially higher than in poor countries.

Just as an economy does not need more money in order to produce more goods and services, an economy does not need more money to have more investment and more savings or more capital.

If that were the case, poor countries could become richer by simply printing more money.

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