Gregory Clark begins his book with an provocative question: why was the average person in 1800 no better off economically than the average person in 100,000 B.C.? The answer is technology (or lack thereof). Until 1800, social structures did not encourage explorations of technology. In fact, they discouraged it by burning scientists and thinkers at the stake. After thousands of years of poverty, starvation, and brutality, Gregory Clark believes that starting in 1800, a confluence of forces came together to actually support scientific inquiry and its development into technology. And technology leads to better living standards. Clark provides plenty of interesting examples and persuaded me. Despite the cutesy reference to Hemingway’s classic novel, if you read this book I’ll bet Gregory Clark convinces you, too.
Although I heard today that the average real income and thus standard of living is on the decline over the last forty years. Perhaps technology and only do so much.
When hedge fund managers make billions of dollars the economic picture gets skewed. Income distribution should be a key political issue…but it isn’t.
George, why do you think income distribution is not more of an issue?