The Every Day of Life

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The Sharp Rise in British Living Standards: from the 1870s a) The steep rise in real wages and living standards is the most significant feature of the British economy and society from the 1870s to World War I: i) perhaps the most significant increase to have occurred in England since the 15th century, even if real incomes, having fallen during much of the Industrial Revolution era, were rising (for virtually everybody) from the 1840s. ii) The evidence for this was presented in several colour graphs and many tables. iii) As the tables also demonstrate, the levels of real wages and real incomes achieved in Great Britain, by the eve of World War I, were higher than anywhere else in Europe, though not as high as had been attained, above all, in the US, or Canada, or Australia, in 1914. b) Causes of the rise in real incomes: i) Deflation and nominal wage stickiness: (1) In my view, the principal cause of the rise in British real incomes was the deflation experienced from 1873 to 1896: in that, while nominal money wages did not rise, or not by very much, the cost of living fell substantially. ii) causes of the deflation, 1873 - 1896: (1) In turn the major cause of the was, despite the admitted power of monetary factors (as discussed in the previous lecture), cost-cutting and thus price-cutting technological changes. (2) The most important was the combined impact of the steam-powered revolutions in transportation which opened up many new areas of the world to food production, for truly globalized world markets. (3) The British, enjoying the combined advantage of Free Trade and the Gold Standard, gained from agricultural imports at world prices, (4) while most other European countries protected their farmers with higher tariffs, thus denying the 'gains of trade' and the rise in real incomes that the British public enjoyed. b) Medical Factors: higher living standards were also due to a veritable revolution in public health: i) capital investments in water-purification and mechanized sewage systems, from the 1880s. ii) That in turn was the almost immediate consequence of the momentous scientific discoveries of Robert Koch and Louis Pasteur: (2) and the realization that about 80% of diseases are water-borne. iii) No other discovery or innovation had such an enormous impact on the fall in mortality. i) Finally, another significant contributor to rising living standards was the great progress in literacy, ii) especially from public investments in mass primary-school education. 2.

Pages: 292

ISBN: B003YDXNGS

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