God is a Capitalist

Showing posts with label Schoeck. Show all posts
Showing posts with label Schoeck. Show all posts

Sunday, October 1, 2017

Adam Smith doesn't explain the wealth of nations

Adam Smith wrote in his Wealth of Nations,
That security which the laws of Great Britain give to every man that he shall enjoy the fruits of his own labor, is alone sufficient to make any country flourish... The natural effort of every individual is to better his own condition, when suffered to exert itself with freedom and security, is so powerful a principle, that it is alone, and without any assistance, ... capable of carrying on the society to wealth and prosperity. 
Smith missed two things that made Great Britain unique - individualism and admiration for commerce. He missed them in the same way that a fish might not think about water. Smith grasped that taxes punished farmers in France to the point that they refused to improve their plots. And he understood that rulers and nobility in the Ottoman Empire and China often confiscated the wealth of successful people and so discouraged them from investing.

Wednesday, December 21, 2016

How Christmas saved the world from starvation

The world was flat until 1600. Not the shape of the planet. According to the best economic history, standards of living even in 1800 AD hardly differed from those of 5000 BC. TV shows dealing with the ancient past assume a gradual slope of progress and portray Egyptians or Abraham and Sarah as if they were primitive South American tribes still stuck in hunting and gathering mode.

But if economic historians are correct, Egyptians in 3000 BC lived as well as the eighteenth century French. Famine and mass starvation were common. Nobel-Prize winner Robert Fogel wrote in Escape from Hunger and Premature Death that in eighteenth century France 20% of the people could get only enough calories each day to fuel a short walk to the spot where they begged.

Of course, some ancient capitals did better than others by looting conquered nations but per capita wealth never increased; it just sloshed from one conqueror to the next. Rome enjoyed wealth and splendor because it had stolen stuff from defeated nations.