The Economic History Podcast

The Great Enrichment

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Sep 16, 2021
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ANECDOTE

Path to Economic History

  • Deirdre McCloskey's interest in history started in childhood, but long, boring books in college led her to economics.
  • Graduate school at Harvard, influenced by Alexander Gerschenkron, brought her back to economic history.
INSIGHT

The Great Enrichment

  • The Great Enrichment, a term coined by Deirdre McCloskey, describes the dramatic increase in living standards since 1800.
  • This period saw a shift from a historical average of $2-3/day to significantly higher levels, such as $120/day in Ireland.
INSIGHT

Capital: A Gear, Not the Spring

  • Capital accumulation is necessary but not the primary driver of economic growth.
  • Deirdre McCloskey argues that capital is a gear, not the spring, of economic progress, and that ideas are the true drivers of wealth.
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