In the first post at his new blog, Anton Howes lays out one of the biggest questions about the 19th century:
What caused the Industrial Revolution?
By the term “Industrial Revolution”, the broadly accepted meaning is of (1) innovation-led, (2) sustained and (3) replicable economic growth.
Each of those adjectives are the source of some of the other important questions in the social sciences. Here are some brief summaries of the issues at hand, which I’ll maybe expand upon separately.
Innovation-led growth distinguishes itself hugely from what we might call ‘Ricardian’ or ‘Malthusian’ economic growth (it’s usually called ‘Smithian’, but that’s a topic for another time). Capital accumulation, population growth, conquest, and education, can all result in initial surges of economic growth. But this is soon brought to a standstill by the brutal reality of diminishing marginal returns, depreciation, and food shortages.
Innovation existed before the Industrial Revolution. Of course it did – you need look no further than the invention of agriculture, writing, bronze, crop rotations, horse collars, windmills, gunpowder, printing presses, paper, and bills of exchange to know that innovations have occurred throughout history before the IR.
The difference is that these were few and far between. Some of them, often grouped together, resulted in Golden Ages, or “Efflorescences” as Jack Goldstone likes to call them. The 1st Century early Roman Empire; the 8th Century Arab World; 12th Century Sung Dynasty China; the 15th Century northern Italian city-states; and 17th Century Dutch Republic are all good examples.
Perhaps most importantly, this miracle quickly spread. First to Belgium, across the Atlantic to the new-born USA, and then to the Dutch Republic still winding down from its own Golden Age, France, Northern Italy, and the multitude of German principalities.
In the last Century it spread to Japan, South Korea, Singapore, Hong Kong, China, Vietnam and Eastern European countries escaping the shadow of Communism.
In this Century it appears to finally be taking root in various African countries. Kenya, Tanzania and Rwanda in particular seem to be leading the way.
The more recent recipients of the IR are experiencing an unprecedented rate of growth, which in itself provides a further miracle in economic history. Britain’s sustained growth only initially manifested itself at less than 1% per year. It took about 100 years for Britain’s first doubling in GDP to occur.
More recent recipients can expect to grow at 7-10% every year, and sometimes even higher. To put that in perspective, growth at 7% per year would result in a doubling of the size of the economy in only 10 years. 10% a year in only 7 years.