POL101Y1 Final: Political Economy 101 Good for exam and essay
16 Oct 2011
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How the rest got rich political economy 101. Capitalism and bureaucracy have found each other and belong intimately together. max. Getting rich has less to do with people, more with economic systems. Decline of spanish dominance end of 16th century: rise of the dutch in 17th century. Multicultural: amsterdam was home to many different cultures. Industrial innovation: before the era of steel, windmills. Energy was used to begin mechanized industrialization. Modern finance: first stock exchange, first central bank that was willing to invest in industry, it was the first nation that could raise capital from public sources. Assuming demand is constant, consumption is a function of price the lower the price the better (buffalo) An increase in supply decreases price -> increase in consumption (walmart) A decrease in supply increases price -> decrease in consumption (energy, gas, etc ) Invisible hand of the market is the most crucial.
