ILRLE 3440 Lecture Notes - Lecture 2: Diminishing Returns, Malthusian Trap
8 May 2018
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30 January 2018
ECON 3300 - Lecture 02!
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Pre-Industrial Societies!
When per capita income is above subsistence (point A) people start have more children and
population increases, but the average person becomes poorer, going to point B, the technological
ceiling!
some argue that an increase in population increases output, but output doesn’t increase nearly as •
much as the population!
diminishing returns!•
Now that society is a the subsistent level, a disaster happens, decreasing population and increasing
the average wealth which restarts the cycle!
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Up until the 18th century there was no notion of “progress.” There was also a believe that you
couldn’t control what was going on!
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Interesting fact: the invention of the heavy wheel plow opened all the fertile land in Europe to
agriculture, increasing output and allowing population to grow from about 1000AD!
an indication of the increase in wealth was the fact that many cathedrals were built in a short •
period of time!
regions also began to trade more!•
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At around 1300 Europe hits a technological ceiling!
There are too many people for the amount of output!•
People farmed in strange places in attempt to sustain the population from 1250 to 1350!•
From this technological ceiling came the Great Plague of 1358, killing about 40% of the •
population!
Only isolated areas were somewhat protected from the plague!◦
Economic growth only restarts in about 1450!•
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The winners from this plague are the Spanish and the Portuguese!
Countries begin to grow in population again in 1600!
However from 1600-1650 (the age of Crisis) the Malthusian Trap doesn’t hit the whole of Europe!
Spain was the poster child for disaster, losing 12% of it population!•
Italy and Germany lose 8% of the population!•
Document Summary
Now that society is a the subsistent level, a disaster happens, decreasing population and increasing the average wealth which restarts the cycle. Up until the 18th century there was no notion of progress. there was also a believe that you couldn"t control what was going on. At around 1300 europe hits a technological ceiling. There are too many people for the amount of output. People farmed in strange places in attempt to sustain the population from 1250 to 1350. From this technological ceiling came the great plague of 1358, killing about 40% of the population. Only isolated areas were somewhat protected from the plague. The winners from this plague are the spanish and the portuguese. Countries begin to grow in population again in 1600. However from 1600-1650 (the age of crisis) the malthusian trap doesn"t hit the whole of europe. Spain was the poster child for disaster, losing 12% of it population. Italy and germany lose 8% of the population.
