ILRLE 3440 Lecture Notes - Lecture 7: Root Mean Square, Walt Whitman Rostow, Investment Banking
8 May 2018
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15 February 2018
ECON 3300 - Lecture 07!
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Craft’s Human Development Index!
GDP/P!1.
Life expectancy!2.
Literacy and schooling!3.
!
Q: Why give these indices equal weighting?!
Life expectancy at birth and average height peak in 1830!•
The British were the richest country but they were not the most literate or the country with the •
highest life expectancy, but Crafts model put Britain out on top!
Note that GDP/P does say anything about inequality, and Britain has the greatest inequality •
between the rich and the poor!
Britain does not have mandatory elementary education until the 1870s!•
Britain only built sewers are filtration systems!•
Britain could not do this easily because the middle and upper classes refused to be taxed!◦
!
Q: How did industrialisation proceed in Britain and why was it delayed in the Continent?!
Britain begins to Industrialise around the 1760!•
The French and the Dutch begin in the 1830s!◦
The Germans start in the 1840s!◦
Russian and Italy start in the 1890s!◦
The British searched people to prevent their machines being exported illegally into Continental •
Europe!
Britain became politically more important as it became economically more importing, meaning •
they posed a threat to the other Continental powers, but it took them two generations to start
and even longer to catch up!
This was a result of the existing social and economic structures in Continental Europe!•
properties rights were not secure, taxes were regressive and there multiple monopolies!◦
Europe’s development gradient ran from west to east, north to south!◦
!
Let’s talk about France and Germany!
France was unified politically but had incredibly bad institutions because the French monarchy •
sold monopoly rights!
Germany was split into 38 separate states and was subject to external tariffs and tolls!•
Revolution started with the Napoleonic wars!•
As the French took over parts of Europe they knocked out feudal systems which were very ◦
hard to bring back, spurring economic growth!
!
There were two barriers to the creation of national markets in Germany
There is no Germany 1.
There is no good transportation system !2.
In 1834 the German states come together and form a customs unit called the Zollverein •
making the German states a collective free trade zone!
The development of rail roads in the 1840s, better than the French railway network, helped •
them transport goods!
The French railways were focused on France!◦
The German railways were built with French capital !◦
Document Summary
Life expectancy at birth and average height peak in 1830. The british were the richest country but they were not the most literate or the country with the highest life expectancy, but crafts model put britain out on top. Note that gdp/p does say anything about inequality, and britain has the greatest inequality between the rich and the poor. Britain does not have mandatory elementary education until the 1870s. Britain could not do this easily because the middle and upper classes refused to be taxed. The french and the dutch begin in the 1830s. The british searched people to prevent their machines being exported illegally into continental. Britain became politically more important as it became economically more importing, meaning they posed a threat to the other continental powers, but it took them two generations to start and even longer to catch up.
