Chapter 4 Flashcards

(43 cards)

1
Q

AJR argument

A

Connectiong between settlers and institutions followed by institutions and economic growth

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2
Q

Geography and science:

A

Agriculture was a big proportion of economic growth in 1700s and depends on:

  • Soil fertility
  • Amount and predictability of sun, rain
  • Water sources for droughts (river, wells) if rain is scarce
  • Terrain of land (Is it hilly)
  • Access to markets (Access to navigable river, lake or sea)
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3
Q

Geography and science:

Economies formed are helped by:

A

Early on: local plants suitable for cultivation

Later on: coal, oil, and other valuable raw materials

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4
Q

Geography and science:

Economies formed are hindered by:

A
  • Diseases, for humans, animals, and crops
    • Tropical areas usually have (had) endemic tropical diseases (malaria, yellow fever, etc) which is harder to eradicate than smallpox.
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5
Q

What geographical issues were overcome leading to a change of the world?

A
  • Eradication of Malaria
  • Falling cost of solar power -> Cost declines from 100$/W in 1976 to 0.3$/W in 2018
    • Solar power is used in Afghanistan to extract water for wells and use it for planting crops such as heroin
    • Tragedy of the commons -> water is scarce and will eventually run out
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6
Q

What helped to connect the world?

A
  • Transport improvements increase the value of good land, by connecting it to people and improving access to markets

Cost of transport technologies:

  • Wagons -> $0.25 /tonne mile
  • Rail -> $0.5 /tonne mile
  • Canal/water -> $0.2 /tonne mile (although slower and more circuitous)
  • This shows that in the event water is unavailable, rail helps to connect regions and as such is useful to be within 10 miles of water/rail

Case Study: America -> Railroads increase viability of land in the grain well compared to waterways and canals in the 19th Century -> Increases capacity to absorb migrants -> High wages increases productivity

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7
Q

What were voluntary migrants?

A

Economic migrants

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8
Q

What were involuntary migrants?

A

Refugees, slavery and exile

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9
Q

What was migration like in America between 1760-1820?

A

Involuntary

Peak of 4 million slaves in this period

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10
Q

What happened to the US migration between 1820-1880?

A

African slaves drops to 2 million

Increase in the number of Europeans by 14 million

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11
Q

What fuelled migration to the US?

A

Cheaper travel costs which lowers returns travel costs in case it doesn’t work out

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12
Q

What was the US migration patterns between 1850-1930?

A

First episode of free mass migration

Before 1914, leading destinations had few restrictions on incoming migrants so people moved from many places to th US, Australia

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13
Q

What was the foreign born flow was a % of population 1830?

A

0.1%

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14
Q

What was the foreign born flow was a % of population 1880?

A

1.5%

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15
Q

What was the foreign born flow was a % of population 1930?

A

0.05%

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16
Q

What was the foreign born stock as a percentage of the US population?

A

1850: 9%
1880: 14%
1930: 6%

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17
Q

Where did economic migrants come from in the US?

A

1850: 90% were from North-Western Europe
1930: 50% were from Southern-Eastern Europe

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18
Q

Where did Norwegians migrate to?

A

Fuelled by their knowledge -> Norwegians had knowledge regarding in cold climates and migrated to colder regions in the US

19
Q

Emigration by Origin (1870-1913)

A
  • France: -1 million
  • Germany: 2.5 million
  • Italy: 4.5 million
  • UK: 6.5 million
20
Q

How was immigration benefiical?

A
  • Useful for US to become a superpower
  • For countries of origin -> reduced downward pressure on wages in Sweden
  • Useful during famine years -> 1 in 6 people from Ireland emigrate during the famine years to the US -> reduces pressures on land
  • Arrival of new migrants: Better standards of living (younger people have greater benefits in terms of greater income)
  • Those from S & E Europe get more education if they move young, so they do better if they move when very young
21
Q

Why was immigation bad for the US?

A

Immigration terrible for indigenous people in the previously sparsely settled “White Dominions”: US, Canada, New Zealand, and Australia

Previous immigrants faced higher competition for jobs with lower wages -> Claudia Goldin (1994): 1 percentage point increase in foreign-born populationreduced unskilled wages 1-1.5 percent (cities)

22
Q

American industralisation

Interchangeable parts:

A

Identical components which can fit into any assembly of the same type to replace another component

Examples

  • Developed in the Springfield Armory (e.g. Colt Revolver)
  • Singer sewing machines -> interchangeable parts sold as mass product for households

Separates manufacture and assembly -> allows easy assembly of new devices, easier repair of existing devices, lowered time and skills per person assembling the product

  • Important for introduction of assembly line.
23
Q

American industralisation

Assembly lines

A
  • Oliver Evans’ flour mill -> innovative: lifting buckets without labour and grain drying (time efficient) -> fully automated process -> increased productivity
  • Disassembly lines (19th century) -> Cincinnati Meat Packing -> division of labour for specialisation in each task
  • Ford Assembly line (1913) -> divided process into 45 steps -> ↓ production time for Model T to 93 minutes
  • Assembly line -> replaced “craft production” -> ↑ specialisation and division of labour -> labour not required to be skilled -> increase productivity.

Allowed mass production in industries -> semi-skilled labour using machine tools instead of traditional methods

24
Q

What were the direct effects of industralisation?

A
  • Labour productivity increases
  • Ford chassis assembling: 13 hours (1913) ◊ 2 hours (1914).
25
What were the indirect effects of american industralisation
Rise of modern management (c. 1890) * Trained managers -\> specialise in efficiency and quality gains * Mass distribution -\> higher output -\> firms able to sell to larger markets (through transportation improvements) * Advertising -\> increases widespread awareness and brand loyalty
26
British path dependecny
* Institutions (political and economic) and infrastructure dictate future progress and allows cities to benefit from agglomeration economies * External Agglomeration: * Costs in industry X are lower, the bigger industry X is in a region * This results in specialist suppliers and exchange of ideas with lower costs. Examples: * Lancashire cotton industry * Midwest automobile industry * Swiss watch industry * London and NY financial centres
27
What was the impact of US immigration on Sweden?
Removed the downpressure on internal wages
28
How did America industralise?
* Making America secure - tariffs, Industrial subsidies and infrastructure, America should be able to produce its own stuff. Subsidies did not happen but tariffs became large and therefore the US industrialised * It had a great availability of raw materials Water, coal and oil power were all available; American manufacturing became raw material and energy intensive, everything of manufacturing was sourced from that power and availability (IT WAS CHEAP to do so)
29
What are factor endowments?
the land, labour, capital and resources that a country can access and use for manufacturing. ## Footnote Engerman & Sokoloff argue that the extreme differences between North America and South America in terms of wealth inequality, human capital and early political influences are due primarily to their factor endowments. They argue that initial differences in equality led to systemic differences in the way institutions evolved. Greater equality led to more democratic political institutions, and so more investment in public goods and infrastructure, with the institutions that developed offering proad public access to economic opportunities.
30
Factor endowments example
* They use the example of the Caribbean. The islands were very well-suited for growing sugar, because of its climate, which was most efficiently produced on slave plantations.This led to institutionalised slavery, creating vast amounts of inequality and a focus on human capital over non-human capital, hampering economic growth. * In contrast with this, in North America, small farms were the norm and the climate favoured mixed farming. As such, America developed limited economies of scale, where few slaves were used. * This developed a homogenous population with relatively equal wealth distributions.
31
Key factor endowments in explaining the divergence between North and South America
1. The suitability of the country’s geography, climate and soils for sugar or other high value commodities that encourage the use of slaves. The Caribbean climate could be an example of this, or South America’s rich mineral deposits. 2. The presence of large amounts of natives to exploit. South America is another great example of this, with plentiful natives to exploit, compared to North America’s limited native population. These created societies in which a European Elite had vastly more wealth, power and economic opportunities than the rest of the population.
32
What was the impact of the Irish famine?
Migration to the US
33
When did migration stock from Southern and Eastern Europe rise?
1890 1920: 45% were from the old sending countries whilst 41 % from new regions
34
Why was it easier to migrate?
Falling travelling costs due to the emergence of shipping technology (Sail to steamships) Migrant networks
35
Why was there a large Jewish migration to the US?
Escaping pogroms in Russia
36
Who were the largest foreign group in the upper Midwest?
Scandinanvians
37
Negatively selected migrants
No legal barreir
38
Asslimation
Changing of names. It was seen that they had higher occupational mobility and labour market outcomes 1910s and 1920s Lessons should be taught in English Irish women still maintained their fertility rates
39
Positive selections for migration
Migrants possess higher skills than the people in their native country
40
What is negative selections of migrants?
Migrants possess lower skills than the people in their native country
41
What was the selection of migrants in the US?
Western Europe: Positively selected = boosted industry and innocation because of the skilled migrants, bought more democracy European peripheries: Negatively selected
42
Argentina as a counter to the factor endowments argument
Similar factor endowments as the rest of North America but developed different but the natives were far harder to exploit Revolutions: Became independent during the Napoleonic wars but they didn't get rid of exploitative insitutions
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