Nm
Growth
Western economy : harness , horse, plow, 3 field crop rotation made farming double or triple its productivity which led to towns growing in the C11 and C12
Jane Jacobs argues for towns first ( which also grew their own food) and then country agriculture expanding to cope with towns
Serfs left the manner to start their own farms- cutting down forests with new Asia broadax and draining marshes with a new technique
Monasteries researched technologies, educated in breeding, crop rotation, water power and metallurgy: the 40,000 monasteries in Europe created the Commercial revolution
Trade was principally textiles and mostly wool
Wool produced for £4- £6 a sack and sold for £12-15 of which the king took £5-6 to pay for wars
Multinational rose from 17 to 62% of US manufacturing from 1950 to 1974
The annual sales at GM greater than those of all but 22 countries
Automation in the 50s led to predictions of mass unemployment
IMF studies (Economist Aug 30 97) show fiscal tightening (defined at a reduction in public debt to GDP of at least
3% ) actually didn't slow growth in each of the 15 countries it looked at. Instead growth and job creation increased as policy was tightened, this was especially true when it was spending cuts rather than tax increases. Interest rates fell in most countries which would increase growth presumably due to less demand from government for funds.
Growth is easier the more advanced you are that the reason why life is speeding up and changing faster and why free enterprise while putting UK and US far ahead the rest of the world at the time, didn't produce the growth rates of say, Hong Kong today.
That's also why Europe claiming it isn't growing as fast as the Tigers because developed nations just don't grow that fast is rubbish. Its not growing as fast because of all the regulations and taxes which dramatically slow growth. With the capital of the west it would grow quicker than the Tigers if it was as low taxing and if it had less regulations (which wouldn't be that hard in some cases)
Growth is dependent on technological progress which is significantly dependent on reward given to entrepreneurs. ((Getting it right : Baro)
Why the older economies tend to converge towards the leader is explained in terms of diminishing marginal returns on capital but this is probably more to do with growth inhibiting policies of Europe and America in contrast with Asean, etc. (Getting it right : Baro )
Statistical analysis of over 100 countries between 1960 and 90 shows growth rate is higher if governments protect property rights, establish free markets, don't have high consumption. High investment in infrastructure gives ordinary but not supernormal returns (Getting it right : Baro p21)
Hong Kong and Singapore both grew at 6% pa between 60 and 90 and per capital income from 25% of US to 75%.(Getting it right : Baro ). Hong Kong only invested a fairly constant 20% of GDP whereas Singapore invested up to 40% due to forced saving. Hong Kong 's investment then was much more efficient. Partly due to diminishing MRs in Sing, also output per unit of labour or capital has not grown so fast in Sing because it hasn't needed to.
The industrial policy to pick winners has been done too often- they haven't stayed in one area long enough to gain the full productivity gains. (Getting it right : Baro )