A Farewell to Alms

Thursday, August 9th, 2007

Nicholas Wade reviews Gregory Clark’s A Farewell to Alms for the New York Times:

Gregory Clark, an economic historian at the University of California, Davis, believes that the Industrial Revolution — the surge in economic growth that occurred first in England around 1800 — occurred because of a change in the nature of the human population. The change was one in which people gradually developed the strange new behaviors required to make a modern economy work. The middle-class values of nonviolence, literacy, long working hours and a willingness to save emerged only recently in human history, Dr. Clark argues.

I’m surprised this hypothesis was “allowed”:

The basis of Dr. Clark’s work is his recovery of data from which he can reconstruct many features of the English economy from 1200 to 1800. From this data, he shows, far more clearly than has been possible before, that the economy was locked in a Malthusian trap — each time new technology increased the efficiency of production a little, the population grew, the extra mouths ate up the surplus, and average income fell back to its former level.

This income was pitifully low in terms of the amount of wheat it could buy. By 1790, the average person’s consumption in England was still just 2,322 calories a day, with the poor eating a mere 1,508. Living hunter-gatherer societies enjoy diets of 2,300 calories or more.

“Primitive man ate well compared with one of the richest societies in the world in 1800,” Dr. Clark observes.

The tendency of population to grow faster than the food supply, keeping most people at the edge of starvation, was described by Thomas Malthus in a 1798 book, “An Essay on the Principle of Population.” This Malthusian trap, Dr. Clark’s data show, governed the English economy from 1200 until the Industrial Revolution and has in his view probably constrained humankind throughout its existence. The only respite was during disasters like the Black Death, when population plummeted, and for several generations the survivors had more to eat.

Malthus’s book is well known because it gave Darwin the idea of natural selection. Reading of the struggle for existence that Malthus predicted, Darwin wrote in his autobiography, “It at once struck me that under these circumstances favourable variations would tend to be preserved, and unfavourable ones to be destroyed. … Here then I had at last got a theory by which to work.”

Given that the English economy operated under Malthusian constraints, might it not have responded in some way to the forces of natural selection that Darwin had divined would flourish in such conditions? Dr. Clark started to wonder whether natural selection had indeed changed the nature of the population in some way and, if so, whether this might be the missing explanation for the Industrial Revolution.
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Generation after generation, the rich had more surviving children than the poor, his research showed. That meant there must have been constant downward social mobility as the poor failed to reproduce themselves and the progeny of the rich took over their occupations. “The modern population of the English is largely descended from the economic upper classes of the Middle Ages,” he concluded.

As the progeny of the rich pervaded all levels of society, Dr. Clark considered, the behaviors that made for wealth could have spread with them. He has documented that several aspects of what might now be called middle-class values changed significantly from the days of hunter gatherer societies to 1800. Work hours increased, literacy and numeracy rose, and the level of interpersonal violence dropped.

Another significant change in behavior, Dr. Clark argues, was an increase in people’s preference for saving over instant consumption, which he sees reflected in the steady decline in interest rates from 1200 to 1800.

“Thrift, prudence, negotiation and hard work were becoming values for communities that previously had been spendthrift, impulsive, violent and leisure loving,” Dr. Clark writes.

Around 1790, a steady upward trend in production efficiency first emerges in the English economy. It was this significant acceleration in the rate of productivity growth that at last made possible England’s escape from the Malthusian trap and the emergence of the Industrial Revolution.

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