How the world became rich

07 June 2022, 01:31 PM

Axtremus

I say oil/fossil fuel. Suddenly finding and knowing how to make use of energy accumulated over millions of years is huge. All other advances flow from there. We won’t find another cache of energy like this on Earth. Got to crack cold fusion or exploit caches of energy elsewhere not on this Earth.

07 June 2022, 06:07 PM

jon-nyc

My top four (off the top of my head)

Harnessing energy

Scientific method

“Permissionless” innovation

Division of labor

Ok now to click the link. lol

07 June 2022, 07:45 PM

Mary Anna

Like Jon, I'm going to throw out some guesses before reading it.

They're limiting their time frame to 200 years, but I tend to think that the roots go back another couple hundred years to the European countries' discovery of the existence of the Americas. Access to all those raw materials (through displacing the people who were already there) had to have thrown their economies into overdrive. I just tend to think that there was an upward curve beginning in 1492 that increased more gradually in scope in the early years, heading sharply upward in the past 200 years.

This was, of course, augmented by colonialism in Africa and Asia and Australia that brought even more raw materials into the world economy, dominated as it was by Europe. And, of course, slavery and other kinds of exploitative labor came with that, and they build wealth for the people at the top.

The Scientific Revolution, industrialization, exploitation of fossil fuels, capitalism--all these things might well have happened, but it seems that it would have taken longer without the influx of raw materials from the Americas.

07 June 2022, 08:19 PM

Mary Anna

Well, they do mention colonialism, but more in terms of slavery than in terms of extracting raw materials. The virgin forests of the Americas alone had incalculable value that I'd think would merit consideration when discussing the economics of the last millennium.

07 June 2022, 10:13 PM

Mary Anna

Forgot to mention that I know one of the people cited here. Kyle Harper is an OU professor and our former provost.

08 June 2022, 08:47 PM

Nina

quote:
Originally posted by Mary Anna:

The Scientific Revolution, industrialization, exploitation of fossil fuels, capitalism--all these things might well have happened, but it seems that it would have taken longer without the influx of raw materials from the Americas.

I semi-agree. But to my way of thinking at least the scientific revolution and industrialization had to come first, otherwise no one would know what to do with all those raw materials (from an innovation standpoint).

"Permissionless" innovation is definitely true in the USA, but I'm not sure if it's a global phenomenon.

Also outsourcing driven at least partly by the tech revolution. The tech revolution needs to be part of the Industrial Revolution's definition for this to make sense in my mind. That was a key driver in the USA's move from a production economy (makes stuff) to a service economy (doesn't make stuff, but provides consultation or other non-tangible services to define in an overly simplistic way). The vast majority of US workers (and especially those in higher-paying jobs) are in the service economy. The uber-wealthy and those making > $250K/yr are usually there. Managers, wealth managers, stockbrokers, e-commerce, consultants of every stripe, trainers, website developers, data security professionals, yada yada just to fire some off the top of my head.

08 June 2022, 09:45 PM

Doug

Haven’t read the article, but I’m guessing it’s:

1) Coupons
2) Senior Discounts
3) Early Bird specials, and
4) Keeping the whippersnappers away from the thermostat.

But maybe that’s just me…

08 June 2022, 10:15 PM

Amanda

quote:
Originally posted by Doug:
Haven’t read the article, but I’m guessing it’s:

1) Coupons
2) Senior Discounts
3) Early Bird specials, and
4) Keeping the whippersnappers away from the thermostat.

But maybe that’s just me…

OK, you did it again, Doug...

08 June 2022, 11:12 PM

Mary Anna

quote:
Originally posted by Nina:
quote:
Originally posted by Mary Anna:

The Scientific Revolution, industrialization, exploitation of fossil fuels, capitalism--all these things might well have happened, but it seems that it would have taken longer without the influx of raw materials from the Americas.

I semi-agree. But to my way of thinking at least the scientific revolution and industrialization had to come first, otherwise no one would know what to do with all those raw materials (from an innovation standpoint).

Actually, I think we do agree. That's what I think was happening during those ~200 years between Columbus and the time frame these people were working with. Exciting technological developments were underway in the late 1400s. We already had the printing press, for example. I figure that large-scale importation of American goods to Europe and beyond started around 1500, and those raw materials fueled subsequent innovation. Rinse and repeat, with the wealth generation building over those years until it hits the level that enables sustained growth at the time discussed in this article, about two hundred years ago.

09 June 2022, 08:57 AM

jon-nyc

quote:
Originally posted by Nina:
"Permissionless" innovation is definitely true in the USA, but I'm not sure if it's a global phenomenon.

I know the phrase is usually used to describe more recent phenomena but I was thinking specifically of the erosion of the guild system in Europe in the 18th and 19th centuries which allowed innovation to occur.

09 June 2022, 01:22 PM

Nina

yep I understand what you and MA are saying, and both make sense to me.
(evil thought): it's clear that a college degree is the passport to higher earnings. maybe that's why the GOP is so dead-set against funding public education.

(disclaimer) Yes, I know that trade schools are another significant means to earn a decent living wage. Our society doesn't seem to prioritize or even really recognize or encourage this. I think this is to our detriment.

(evil thought 2) what's not a good ticket out of poverty for many is joining the military, but it remains one of the few options for many young people. I wonder why....?