I wrote something earlier this morning, which did not go through
because I pushed the wrong key.  I made the same point as Jim did
about fossil fuels, except that my focus was somewhat different.  My
point was that the effect of the initial Industrial Revolution tended
to be exaggerated, according to Michael Liebowitz's student, Maxine
Berg.  The dramatic takeoff in what I call the Real Industrial
Revolution took place in the late 19th century, when business more
effectively learned to harness fossil fuels in a way that could run
huge industrial complexes as well as railways.  The result was an
enormous increase in industrial capacity that swamped existing levels
of demand, leading to what was called the Great Depression in the late
19th century.  The story is a central part of my book, Railroading
Economics.


-- 
Michael Perelman
Economics Department
California State University
Chico, CA
95929

530 898 5321
fax 530 898 5901
http://michaelperelman.wordpress.com
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