The Rise of the US Flashcards
(15 cards)
What drove early 19th-century US growth?
Increased labour hours more than productivity.
What drove late 19th-century US growth?
Labour productivity, especially capital deepening.
What was the role of TFP in the 19th and 20th centuries?
Modest in the 19th century (0.2–0.4%), but key in the 20th due to human capital and R&D.
What are the key features of the ASM?
Large-scale, capital-intensive production, assembly lines, standardised goods, interchangeable parts, and professional management.
Name three industries that exemplified the ASM.
Colt revolvers, Singer sewing machines, Ford Model T.
What is the Habakkuk thesis?
US had cheap capital/resources and expensive labour, encouraging capital-intensive innovation.
What did David & Wright (1997) argue about US resource use?
US success came from developing resource potential, not just having endowments.
How did British capital inflows help the US?
Funded infrastructure like railroads, which had strong backward and forward linkages.
How did labour scarcity affect US development?
Attracted productive European migrants and led to institutional reforms to attract labour.
What was the Homestead Act (1862)?
Gave 160 acres of land to settlers who improved and farmed it for 5 years.
How did US education compare to Europe?
Higher primary, secondary, and tertiary enrolment; strong in science and maths.
What was the impact of education on growth?
Supported endogenous growth and industrial innovation.
What was the US tariff policy in the late 19th century?
Highly protectionist, based on the infant industry argument.
What were the effects of US tariffs?
Excluded foreign competition, promoted capital accumulation, and encouraged FDI.
How could tariffs have supported US growth?
1) Boosted capital goods demand, 2) Created fiscal surpluses, 3) Encouraged FDI, 4) Shifted income to high-saving households.
