How the World Became Rich: The Historical Origins of Economic Growth

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The book's not perfect (I don’t even agree with that much of it), but the main points—pre-Soviet growth was limited and living standards/urbanization did rise under the Five-Year plans—are not really compatible with the more standard view (planning failed and was unsustainable) that the authors espouse. The contrast is between favoring incumbents by raising profitability (in this case for political purposes) rather than encouraging new entrants. Koyama and Rubin (2022) extensively analyze various factors such as technological advancements, global trade, capitalism, access to natural resources, human capital development, political stability, and financial systems. Incorporating real-world examples enhances the book’s effectiveness in fostering a deeper understanding of economic growth.

Many of the innovations of the first Industrial Revolution were not science-based and thus did not require a highly skilled workforce.However, this could have been taken further, as in Biggar’s (2023) work documenting the end of slavery and the work taken to achieve this by the British Navy. Incomes will rise in the short run, but over time people will have more babies and those babies will eat up all the economic surplus.

Its comprehensive coverage, clear explanations, integration of multiple perspectives, consideration of historical context and long-term trends, and recognition of social and environmental implications provide readers with a comprehensive analysis of the factors driving wealth creation. The book has been written to explore the factors that have contributed to economic growth since the Industrial Revolution, spanning centuries of history and encompassing various aspects such as technological advancements, global trade, capitalism, access to natural resources, human capital development, political stability, and financial systems. show how “Malthus turned out to be wrong” by noting examples such as how “he did not fully anticipate the extent to which married couples would seek to limit their number of children”. How and why modern economic growth occurred when and where it did, and how economists have tried to understand this phenomenon, is the theme of this book.Using real-world examples makes the material relatable and practical, fostering a deeper understanding. The book’s strengths lie in its comprehensive coverage, clear explanations, integration of multiple perspectives, use of real-world examples, consideration of historical context and long-term trends, accessibility, and acknowledgement of social and environmental implications.