Macro Musings with David Beckworth Mark Koyama on *How the World Became Rich: The Historical Origins of Economic Growth*
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Feb 5, 2024 Mark Koyama, an associate professor of economics, discusses the historical origins of economic growth and the key drivers throughout history. Topics include geography, institutions, the Protestant Reformation's influence, Malthusian theory, factors influencing the Industrial Revolution, Rome's lack of industrialization, and future economic growth challenges.
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Modern Growth Outpaces Medieval Elite
- Modern economic growth has made most people richer than historical elites like English Barons in 1200.
- Today, most live in middle-income countries with adequate nutrition and resources, a historical rarity.
Geography's Compounding Economic Role
- Geography shapes economic activities via factors like availability of domesticable plants and animals.
- This initial geographic advantage compounded over centuries, benefiting Eurasian societies over others.
Limitations of Geography Theory
- Geography alone cannot explain reversals of fortune or sudden growth spurts like the Industrial Revolution.
- Fixed geographic advantages are insufficient without dynamic, changing institutional or technological factors.