On Fri, 1 Oct 2010, Keith Hudson wrote:

> Apart from the necessary supply of increasingly cheap fossils fuels, the 
> industrial revolution (that is when the idea of "economic growth" emerged 
> and GDP has been worshipped) depended foremost on the mass production of 
> what were originally hand-made luxury items enjoyed by the land-owning rich 
> of the agricultural era. Despite what Marx and Engles said about the 
> increasing impoverishment of the factory workers they were, in fact, 
> prospering all the way through the 19th century and most of the 20th. As 
> each new consumer product, hitherto expensive (cotton clothing, porcelain 
> pots, curtains for the windows, bicycles, etc) became cheaper in successive 
> swathes then, with hard saving at each stage -- the professional 
> middle-class (see Samuel Pepys diaries), then the middle-class, then the 
> working class -- became a cornucopia flowing downwards, and a whole 
> population working hard and aspiring upwards. 

I'm finally moved to comment on this thesis. If I were to contemplate 
the arc of the western prosperity flowing from the industrial 
revolution, I would pinpoint the key drivers as being a synergy of 
several. Obviously key are the extraction of high energy content
fossil fules, first coal then oil, in combination with the development
of devices to extract and exploit them for motive power and ancillary
applications, particularly smelting. But what I would identify as the
key additional factor which catalyzed the advance of wealth is the 
simultaneous advent of vast open frontiers, offering the opportunity
of carte blanche application of the new technologies and accompanying 
explosive population growth. At the same time, intellectual freedom
led fairly directly to great advances in public health and sanitation, 
which brought about such an improvement in the living conditions of
the already "fully" populated regions of the world that it was the 
virtual equivalent of the opening of another frontier, in terms of
the resulting increase in population.

All this growth and expansion provided the main wealth driver, not
in consumer goods, but in major industrial production for housing,
transportation and commercial infrastructure: steel rails and girders,
brick, concrete, and asphalt; multistory buildings, highways, bridges,
ships. I suggest that an entire absense of consumer products may not
have caused a substantial reduction in the overall arc of productive
activity and accompanying growth of wealth (if we consider housing
to be distinct from consumer goods). You can consider the automobile
a consumer good, but in its absense, an equivalent flourishing of
public transportation would necessarily have resulted.

 -Pete


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