below_freezing
ELITE MEMBER
- Joined
- Feb 26, 2010
- Messages
- 8,253
- Reaction score
- 0
True that. However, in the case of India and China, the growth we see is not due to exploitation of other countries in the classic sense of like those by colonial powers of yester years.
How is that Europeans could come up with the idea of Industrial revolution what with all their inbred royalty and always at wars with each other, while Asian and African countries lagged way behind inspite of having decades of relative peace?
Are wars - the bane of civilized society - driving cause for a country's growth? Do wars drive innovation and industrialization?
My theory is simple: industrialization in Europe was a complete accident of geography. This is not racism, this is anti-racism, because the alternative theory is: Europeans are superior to Asians, which is not true, going by their lower IQs.
Here's why I say this: India and China, for the most part of the past 1000 years, enjoyed relative peace and stability. This was especially evident in the Ming Dynasty and Mughal Dynasty. However, we were not able to expand our territories; this led to a trap called high level equilibrium, where our GDP/capita increase and population rate increase at the exact same rate, therefore no surplus capital is avaliable for investment, since all of it was used to maintain the current standard of living. As populations increased, the need for technological development decreased, as labor became cheaper and cheaper it became more worthwhile to invest in workers, rather than in machines. Once in a while, wars would decrease the population, but they simultaneously decreased the GDP, and the trap remained. Europe was also stuck in this trap until a major event occured: discovery and colonization of the Americas.
The colonization of the western hemisphere by whites (an accidental event) was an event that propelled Europe out of the equilibrium trap in every way possible. There was plenty of avaliable land, allowing large farms to be built and take advantage of economies of scale, increasing per capita food output and therefore GDP; this way, American farms could sell food back to Europe and increase Europe's population. the US was also a population sink, being short of labor while Europe had surplus labor thanks to American food being sold back to them, this in turn increased the cost of European labor enough for machines to become a worthy investment. Finally, the traders of food and labor accumulated surplus capital, increasing GDP growth rates beyond population growth, and had the capital needed to invest in machines. Once the first factories were built, there was another labor sink, which put the abundant cheap labor at the time to employment and allowed the bosses to accumulate even more capital, which allowed them to invest even more in machines, etc. and creating a positive feedback loop that propelled Europe ahead.
Without the discovery of the Americas and the surplus food + labor sink for pre-industrial age, industrialization would have been impossible.