Sunday, June 5, 2016
Why Did Industrial Revolution Start In Great Britian And Not In China?
This is a review of a book which reviewed many of the major books written on this subject and finds fault with most of them. In particular, it reached a conclusion that is diametrically opposed to the conventional wisdom on this subject. Adam Smith's Britain did not exist. Britain's success is best explained by factors which are assumed to impede economic growth. It had a big government which funded a powerful navy; it had high taxes and it had an industrial policy that enabled its economy to expand through trade. China lacked most of the ingredients present in Great Britain that enabled the industrial revolution. This suggests that a strategy of low taxes and small government is not the magic assumed by most economists and politicians today. It is not supported by historical or economic analysis.