BC5000-1000:GDP per person barely changed,maintaining at a low level.
Technology did improved during that time:discovery of coppers,tools,and existence of primitive selling ship. But technology itself couldn't guarantee the improvement of people's living standard. Extra required points:accumulation of capital and the readiness of pursuing profit(I can imagine slaves could make free market)
1000-Industrial Revolution:middle-class didn't exist Global inequality emerged
Division of labor was low
Before Industrial Revolution,people produce according to experience;then skills came out;in the process of improving skills science came into being.
Since Industrial Revolution,huge economic growth.
Why happened in Britain?
(1)English Revolution. People felt affiliated to the country
(2)oversea trade
(3)success of war against France
(4)quantity demanded increased hugely and the traditional way of supplying couldn't meet,which stimulated people to figure out efficient way to produce
(5)protection of patent,which encouraged people to create
(6)scientific curiosity Newton's discovery Watt's invention Adam Smith's theory
(7)the profit of industrializaion came to entrepreneurs and people rather than to a minority of aristocrats.
How did the revolution change people's life?
(1)People emphasized time
(2)Factories,chimneys were built even in countryside
(3)Lots of people immigrated to the city
(4)Division of labor.Workers could specialize rather than know all the details of a certain product.(The essence of I,Pencil) Market,efficiency
(5)COMPETITION replaced the Middle Age old rule.
If I wanna be rich,what should I do?
(1)I produce more
But that means you will have to produce clothes, cultivate potatoes, raise cows, etc, you will have no idea how to do all these things by yourself. So self-sufficiency is the road to poverty.
(2)I trade with others (best)
Comparative advantage means that I can bear a relatively smaller trade-off than my trader to exchange something I want yet have to have more opportunity cost to get by my own work.
(3)I get donation and money from dead family members.
You will get benefit, but it is a zero-sum game. Maybe it can be applied in a small circle of intimate people, but it is hard to generalize.
Extensive growth:expansion of the quantity of inputs in order to increase the quantity of outputs,not good in the long-run
Intensive growth:help to enhance GDP per person and living-standard per person.
No comments:
Post a Comment