Economic History Flashcards
How have living standards changed over the past few centuries?
Life expectancy was about 25 years More than 30% of newborns never reached their fifth birthday Women had a 10% chance of dying during childbirth Most people had personal experiences of disease/starvation The standard of living for one generation was no higher than that of the previous generations.
What happened in the last 250 years or so?
A process of rapid innovation led to the invention or exploitation of electricity, engines, computers, radio, television and a host of other technologies.
What was the result of this process?
An explosion in living standards Life expectancy at birth now well over 60 years worldwide Many people able to afford much better housing, clothing and food than was even imaginable a few hundred years ago.
Regarding higher living standards and the world we live in today, what did the ancient Greeks achieve?
They invented a simple steam engine and the coin-operated vending machine They even developed the basic idea behind the programmable computer But they never quite got round to having an industrial revolution and embarking on a path of sustained economic growth.
What happened in the 18th century to accelerate economic growth so radically?
English industrial revolution began, increasing living standards in many nations Also the following institutions were in place: Democracy: consider that you’re more likely to invest if your investment is protected by the rule of the land and not on the whim of a tyrant. The limited Liability corporation: Under this business structure, investors would lose only the amount of their investment and not be liable for any debts the corporation was unable to pay - thus greatly reducing the risk of investing in business. Patent rights to protect investors Widespread literacy and education: without highly educated inventors new technologies aren’t invented. Without highly educated workforce new technologies aren’t mass-produced. And so, mandatory education paved the way for rapid and sustained economic growth.
What is one drawback from our excessive society today?
Thanks to the institutions and policies that gave us a world of excessive growth and an abundance of opportunity so unprecedented in world history, one of the major public health problems in many countries today is obesity.
