Econ Unit 2 Part 1

Overview of Technological Change and the Industrial Revolution

• The video discusses the impact of technological change on population growth and living standards.

• Focus on the Industrial Revolution as the starting point for understanding these concepts.

Pre-Industrial Conditions

• Prior to the Industrial Revolution (1800s), average living standards did not significantly improve.

• Most families earned just enough to meet basic needs – food, shelter, clothing.

• Population levels were constrained by the economic ability of families to provide for necessities.

• When incomes fell, mortality rates increased, leading to a stagnated population growth.

Effects of the Industrial Revolution

• Dramatic increases in average incomes removed constraints on population growth after the Industrial Revolution.

• Key factors for population growth:

  • Sustained increase in incomes due to industrial advances.

  • Improvements in health care and medicine.

• Today and in the future , lower fertility rather than mortality will constrain population growth

What is the relationship between population growth and income?

• Thomas Robert Malthus introduced the Malthusian trap in 1798:

  • Theory asserts that increases in income per capita are unsustainable due to demographic responses (more children).

  • Population would eventually grow to the point where income levels fell back to subsistence.

• The Industrial Revolution disproved this theory by allowing sustained economic growth beyond Malthus's predictions.

Inventions of the Industrial Revolution

• Key inventions that spurred the Industrial Revolution included:

  • Flying Shuttle (1733) by John Kay: Increased weaving output dramatically.

  • Spinning Jenny (1764) by James Hargreaves: Revolutionized spinning to meet growing yarn demand.

  • Steam Engine: Enabled significant advancements in mining, manufacturing, agriculture, and transportation.

    • Shifted energy sources from wood to coal, exploiting Britain's coal reserves efficiently.

Why Britain? Reasons for the Industrial Revolution's Origin

• Various opinions exist regarding why the Industrial Revolution first flourished in Britain:

  • Scientific Revolution: Emphasis on invention driven by curiosity and prestige (Joel Mokyr).

  • Political Systems: Innovation encouraged over stability (David Landes).

  • Culture: Values of frugality, savings, and hard work (Gregory Clarke).

  • Resource Accessibility: Unique access to coal and sugar (Kenneth Pomeranz).

  • Economic Conditions: High wages and cheap coal made technological improvements attractive (Robert Allen).

Africa's Role in the Industrial Revolution

• The demand for raw materials in Britain drove interactions with colonized territories, including Africa.

• Africa provided essential raw materials at low costs, including:

  • Oil, ivory, rubber, wood, cotton, cocoa beans, copper, gold, iron, diamonds, cobalt.

• Colonies served as markets for industrial goods produced in Britain.

Conclusion and Transition

• The Industrial Revolution is foundational to understanding the "hockey stick phenomenon"—a term describing growth dynamics in living standards and population.

• Next steps lead into economic modeling discussions, starting with the Malthusian trap in subsequent videos.