ECON 234 Chapter Notes - Chapter 3-4: Spinning Jenny
Document Summary
C"s = country or countries (depends on the context of the sentence) R&d = research and development tech = technology. High wages in england gave firms incentive to use tech (which increased productivity) low wages in the rest of europe > no incentive to use tech. Unlike britain, industrialization in rest of europe was planned out. The standard development strategy (aka standard model policy) allowed continental europe to catch up w/ england (during the catch up period mentioned in chapter 1*). The standard model policies were: create national market by abolishing internal tariffs & improving transportation. 2. implement external tariffs to protect infant industries from britain: create banks to stabilize currency & provide business w/ capital, mass education > to speed up adoption & invention of tech. The spread of industrialization in europe allowed tech (i. e. spinning jenny which was invented in england) to be profitable everywhere (thus giving more incentive to invent new tech)
