ECON 200 Lecture Notes - Lecture 20: Robert Fogel, Protestantism
Document Summary
The role of railroads in american economic growth: rrs are supposed to have been important, rrs half as costly as the alternatives, rrs carried half the stuff and transportation is 1/10 of the economy. 50% cost savings * 50% transportation * 10% of national income = 2. 5% Geography (continued: frost the great executioner of nature . People work hard (not lollygagging) economic growth. Also reading the bible literacy = wealthy. Peace, easy taxes & a tolerable administration of justice = prosperity. Lras = peace because people die when there is war and curve shift to left. Tolerable justice = protection of property rights, less corruption lras. British came to america because they could colonize. Brought british ideas to build mini-england & live here. If they can"t live there get resources. Hands cut off because natural resources were wanted. Get $ from trade, not citizens responds to trade. Once an institution is in place, it stays for a while.
