Population

Population growth clearly leads to an improved transportation system, which in turn stimulates economic development and further population growth.

The most important economic effect of population size and growth is the contribution of additional people to our stock of useful knowledge.

It is impossible for the arts and sciences to arise, at first, among many people unless that people enjoy the blessing of a free government...An unlimited despotism...effectually puts a stop to all improvements, and keeps men from attaining...knowledge.---David Hume

The competition fostered by independence allowed people considerable freedom from monarchs and bureaucracy. This afforded them economic opp to use their talents, make advances, and profit from their efforts.

There are two kinds of inventions:
(1) invention-pull: those that are adopted as soon as they are proven successful in that they increase production with no more labor

(2) population-push: those at first require more labor, and hence will not be adopted until demand from additional population warrants the adoption.

Productivity increases faster when population is larger.

A larger population influences the production of knowledge through both supply and demand mechanisms.

Supply side: a larger population implies a larger amount of knowledge being created, all else being equal, as a result of there being more people to have new ideas.

Demand side: more people means there are higher demand for consumption in the short run. Prices rise, and induce entrepreneurs and inventors to step to get profit.