Chapter 2 Flashcards
(50 cards)
What was the impact of the poor law?
Early welfare state, feeding orphans making them strong, allowing them to work which futhers trade
Impact of slavery
Doesn’t gurantee development
What happend to London?
Main hub as it was a source of urban demand and focus on specialisation
Impact of international trade
Increased variety of goods and services, therefore an incetive to earn more in order to
Impact of the changing institutions
parliament gained control over the financial business of the state (leading to the BOE). People overall, trusted the institutions more and trust is essential for trade, consumption and growth
Impact of coal
It was used to power factories, stop mines flooding, to move goods by train and ship. It was cheap and abundant letting it underpin the economy.
Impact of changing marriage patterns
Increase in female emancipation,
output increases as women are in the labour instead of married off at a young age.
What are the Bourgeois values?
- Justice (contracts)
- Temperance (saving)
- Courage (entrepreneurship, risk taking)
- Prudence (Self-interest)
- Faith (community and respect)
- Hope (hard work to create a future)
- Love (family, employees and country)
Impact of Bourgeois values
McCloskey argues that pre-enlightenment societies were dominated by “aristocratic pride, clerical anger and peasant envy” - There was no sense that the economy could grow, rather people thought about how to win at others’ expenses. Pre-enlightenment construct is washed away by the Bourgeois values.
The idea is that these release from envy so the people invent, innovate, etc. And that when they do so, they will be respected in society, not looked down on ,feared, or persecuted. They will be seen as successes
People work harder and longer (industrious revolution), even though it is EXTENSIVE growth it delays the likes of the Malthusian trap since workers can support more people at a time (SR)
Impact of the declining influence of the church
more and more people chose to work on Saint’s days (Saturdays and Sundays), despite the Catholic Church rules
Impact of no internal tariffs
It had no internal restrictions in trade- unlike France with internal tariffs. Canals and good roads also benefited internal trade.
Impact of turnpikes and tolls
allowed for profit which could then be hypothecated back into the maintenance of the road leading to increase and ease in internal trade.
Impact of Enlightenment
Move away from religion (secular development) , an era of innovation, introduction of fact and reason, logic, system of thinking.
Impact of the Glorious Revolution in 1688
William of Orange, Parliament had control over the finance of the state during the 40 year war with France. (it increased institutional trust, monarchies were less trusted than institutions) but the journey of trust was not a straight-forward matter
What happened to interest rates?
interest rates fell considerably during the establishment of the IR. Food prices and rent are high but interest rates are low so real wages fall; but labour availability rises in this time period.
What is the industrial revolution?
Transition to machinery at a large scale
What is real wages?
Nominal wages deflated by CPI
What is the consumer price index?
Measure for the cost of living in a country and select a botch of commodities and make an avergae price figure and that is our average
Allens argument:
High wage hypothesis
International trade (started using coal becuase of wood shortage, imperialism led to an increasing population) = high wages (Due to agricultural revolution, rising productivity, trade and specialisation = incentive to not employ much labour and increasing consumption) + cheap energy economy (Incentive to enage in capital, and they would have the potential to sell it and gain afterwards) = indsutrial revoltuion
France tried to do a similar to Britain however it failed, since coal prices etc were too high in France and the tech dynamic was not cost effective in France.
High income economy = greater engagment in education = more technological advancement
Allens argument:
Evidence to show that becuase the coal prices were high, technological innovation did not occur in France
- French governmetn sponsored the construstion of English style iron works (including 4 coke blast furnaces) in Burgundy in 1780
- Raw materials and enterprise were adequate. Even hired English expertise but it flopped due to the expensive price of coal
Allens argument:
What was the price of energy in early 1700 in Newcastle and paris?
Below 0.5 grams of silver per million BTUs in Newcastle
In Paris, the price was around 8.5 grams of silver per million BTUs
Allens argument:
What were the labourers wages in grams of silver per day in 1775?
- London: 17.5 grams of silver per day
- Vienna: 2.5 grams of silver per day
- Amsterdam: Around 10 grams of silver per day
Allens argument:
Counter associated with womens wages
Women were paid much less
What are the counter to Allens argument which is within the essay of Precocious Albion?
- High wages due to high productvity
- Focuses on textiles industry but not all industries had this trend (Cotton industry was shown to be an anamoly)
- Focuses on London males
- When coals was expensive, technological advancement still occured
- Clock and watch makers used little coal
- 1660-1800: 4.2% of all patents taken out stated labour saving was the goal
- 1660-1800: 30.8% of all patents taken out stated capital saving was the goal