Why Britannica Created the Modern World.

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Why Britannica Created the Modern World.
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Britain, Acholi, Amin, Obote
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Statement? True or False

• Every great period of advancement in civilization
  is preceded by advancements in transportation
  and/or communications.

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Thomas Friedman

• Postulates the world is getting Hotter, Flatter
  and more crowded.
• By Flatter he means closer together in terms of
  communications and transportation.

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Adam Smith Father of Modern Economics

• Wealth of Nations
• Government interference in economic systems harm
  them.
• Looked at the relationship Between Supply and
  Demand.
• The value of Outputs must exceed the cost of
  inputs to make production viable.

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Adam Smith

• Price is a function of utility (does it do
  something people want/need)
• Scarcity (how much of the stuff is there
• Utility, Scarcity, demand and price affects each
  other.
• Think about Electric cars?

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Adam Smith

• Left to itself, economic forces will be guided by
  an invisible hand to make supply and demand
  seek stability

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Hopefully the price of the outputs exceeds the
cost of your inputs

• Inputs
• Capital (money)
• Management
• Labor
• Raw Materials
• Machines
• Energy
• Transportation (infrastructure)
• Research and Development.
• TAXES
• Profit

• OutputsProduct or Services

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Increased Efficiencies lowers cost of inputs

• Efficiencies include
• Educated labor force.
• Machinery (reduces labor cost, better quality)
• Infrastructure
• Economy of Scale the more you make of something,
  the smaller the cost for each unit.
• -what if each item of clothes you wore were
  hand made?

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1800

• Most people lived in one room, maybe two.
• Cooked with wood or charcoal
• One or two suit of clothes, Sunday go to meeting
  clothes and everyday.
• Lived and died 20 miles from where born.
• Life expectancy at birth 40/50, same as hunter
  gatherers.
• About a Billion people Worldwide

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In 1800

• On Average, the average person in the world was
  living at about the same level.
• That level was the same standard of living as
  they were living at 6000 years before.
• Calories consumed
• Health care/knowledge
• Work for calories actually greater than hunter
  gathers
• clothing
• Living conditions

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Mondern Hunter Gather 37a.b. 57 at 20
England 38birth 54 at 20 China 26 50 N.
Africa 24 41
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1800 Brits were less efficient than
Hunger/Gathers at obtaining calories
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Thomas Malthus

• Postulated that there was a direct relationship
  between Population, death rate and standard of
  living.
• Given a population with a high standard of living
  (food, high survival rate), you would have
  population growth.
• As the population grows beyond the ability to
  support it with food, the standard of living
  would drop.
• Then, eventually, particularly under pressure,
  people would die off, until the population was
  low enough to raise standard of living.
• For instance The net effect of the plague was a
  raise in living standard.
• This model worked well for the world until 1800.

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Between 1800 and now

• World population has grown from 1 billion to
  about 6.5 billion and continues to grow rapidly.
• What would Malthus predict?

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Malthusian Trap

• Production will increase population and living
  standard until BAM, population will exceed the
  ability of the resources to sustain it,
  regardless of efficiencies, living standards will
  drop, people will die.
• When enough people die (eg Plague), resources
  will be enough, population will rise.

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Irony
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What Malthus didnt think about What would
happen if you injected modern medicine into this
equation?

• If people were saved from dying, standard of
  living would drop, but there wouldnt be the
  ensuing mass death.

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Britain breaks the mold

• In England, Everything changed
• Population increased
• Standard of living went way up.
• Life expectancy began to rise.
• What happened? And Why there?

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Gun, Germs and Steel?

• Diamond suggest geography was the chief
  determinant in European ascendency.
• People living on the same latitude could benefit
  by similar climates, animal life and information
  sharing.

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Guns, Germs

• People, who left Africa, first settled in Central
  Asia/Middle East, and domesticated large animals
  for grains and labor.
• These plants and animals flourished along that
  latitude, allowing civilizations to expand.
• Domestication freed up time and people to
  diversify occupations and expand civilizations.

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Guns, Germs, etc.

• The constant interaction of man and animals
  allowed germs, small pox, flu, etc to spread back
  and force and eventually people along that
  latitude built immunities, that those in their
  future colonies didnt have.
• Its estimated that as many as 90 of the Native
  American population died of small pox.

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Guns..

• In addition metallurgical technology spread along
  that latitude and people got better and better
  and producing strong steel swords and the like,
  which later led to industrial uses of metals.

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Guns

• Then gunpowder from China was matched with
  missile technology from Europe (why do you think
  Galileo went to Pisa?) creating guns and canons
  that people along that latitude never developed.
• Europe dominated.
• But why Britain?

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Contrary to today, the Wealthy had a population
boom. These people made money off the land, so
their extra sons joined the army, went to school,
studied scientifically and invented cool
stuff.Provided England with an educated middle
class.
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The Dissenters Puritan Work ethic

• Had no problem with exploring the natural world.
• No problem making money in manufacturing, thats
  what was left to them by the snob classes.
• Hated play/fun, after all, idleness is the
  devils workshop
• Children were little adult, no adolescents.
• a penny saved is a penny earned.

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Dissenter Puritans

• Protestants believe that every man has a personal
  relationship with God, whose word is spread
  through the Bible.
• To read the Bible, you must be literate.
• So, in England, you had a large, disenfranchised,
  literate, hard working underclass who were
  allowed to work and make money in manufacturing.
• Not be design, by chance.

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Puritans lived by a strict moral code
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Puritan Work Ethic or meme

• Puritans believed in predestinationbut how do
  you know you are a choosen person?
• Well, by the way you acted, if you looked moral,
  you must be choosen?

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Why Britain?

• The Enlightenment and Reformation increased
  scientific thought and the reformation literacy.
• They had a large increase in population of
  educated upper and middle class people, freed
  from the land.
• Dissidents were funneled into mining and
  manufacturing with profit as motivation. (Not
  snobby landed aristocrats). Banks funneled
  capital from aristocrats (sugar, tea plantations)
  to dissidents very efficiently.
• Puritan academies taught math, science and
  engineering, studied the natural world.
• The non-nobles slowly began to gain political
  power, creating more of a meritocracy. Power
  follows money.
• Coal mining and dissidents led to the Steam
  Engines and massive changes in efficiencies, the
  world got flatter.

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Britains Advantages by 1800

• Stable government, where power was shifting to
  money from birth. (Magna Carta)
• No Wars on Home Turf to disrupt production.
  (unlike Europe with the 30 years war, French
  Rev., Napoleaon, Franco-Prussian War , etc.)
• A population boom in wealthy and business
  classes, provided literate middle class to run
  your business.

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Three Big Inventions

• James Watts Steam engine, originally to pump
  water out of coal mines, eventually to power
  everything until the internal combustion engine.
• The Railroad which began in the early 1800s in
  England bringing raw materials to centralized
  factories and manufactured goods to shore for
  export.
• Eventually moving armies and people, no more only
  living and dying 20 miles from home.
• Steam Ships, They could sail against the wind,
  talk about a flattening world.

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Tinkerers

• Many of the inventions of the industrial
  revolution came from tinkers, guys in their
  metaphoric garages
• Eli Whitney cotton gin, interchangable parts.
• Watt Steam engines.
• Marconi wireless radio
• The internal combustion engine.

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ICE
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• Agricultural revolution of the 18th century
  provided food to defeat Malthusian trap. Freed up
  farm labor to become city labor.
• Crop rotation
• Farm enclosures
• fertilizers
• Established trading posts became foothold for
  colonialist and the U.S. a huge provider of food,
  that could get there fast because of steam ships.
  (Potato famine)

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Kuchnet and the U Curve

• Economist Kuchnet hypothesizes that in an
  agricultural society incomes a relatively equal
  in an industrial one they become less equal as
  the knowledgable and capitalists make more than
  labor
• But then labor gets more education, demands
  higher wages and better conditions and the income
  begins to equalize.

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Pareto hypothesizes that

• Income disparity doesnt matter, as long as the
  increase of wealth in the rich, also benefits the
  poor. True?

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Efficiencies of inputs

• Inputs
• Capital (money) Banks, Barklays, Lloyds,
  joint-stocks, insurance..
• Management Literate dissenters, population boom
  in educated classes.
• Labor mostly literate protestants, work ethic
  (dour dissenters), schools
• Raw Materials taken, forced trade, no tariffs.
• Machines steam powered, mass produced (economy
  of scale), machined, interchangeable parts some
  10001 in efficiency.
• Energy Coal, lots of it
• Transportation (infrastructure) canals, roads,
  trains, steamships
• Research and Development literate, amateur
  scientists (enlightenment)
• TAXES None
• Profit Tons.

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There it is

• Early colonization provided raw materials and
  knowledge(g,g,s)
• Banks to move capital from colonies
• Dissenters the work ethic, incentives, scientific
  inquiry, literacy.
• Britain the safe government Adam Smith Laissez
  faire economics.
• Raising middle class of workers/mgmt consumerism
  and markets, keeping up with the .
• GSS, the easy exchange of knowledge, metallurgy,
• Agricultural advancement. Interchange of crops,
  No Malthus
• The steam engine, precise machine tools,
  interchangeable parts, coal
• the power, mass production (economy of scale,
  massive efficiency), infrastructure,
  Transportation and communications.

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Children were used to pull the coal from the mines
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New Inventions meant a massive shift in
efficiency more outputs with less inputs.
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With efficiency income followed.
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WWMS?
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1836 to 1862 repeating, breech loaded guns
changed the face ofwar. Required
interchangeable, machined parts.
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By the late 19 century

• England had expanded its colonies and economy to
  the point where it dominated the entire world.
• Britain ruled with an iron hand, justified by
  Social Darwinism.

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Ad extolling White Men to help natives get clean
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The U.S. Philippines War
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White Mans Burden
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Politically,

• Workers conditions and the expansion of crowded
  cities and the problems they brought led to
• Progressive movement Modern liberalism
• Socialism government responsibility to all the
  people.
• Communism (Marx and Engel) extreme socialism,
  all goods and services equally shared. Government
  control of the means of production/
• Modern Conservatism and laissez faire economics.
  Economic Darwinism.
• Social Darwinism to justify it all. Superior
  countries weremeant to rule the rest. Those
  countries were on top for a reason.

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• 1801 Britain makes Ireland part of a single
  British kingdom. Parliament in Dublin is
  abolished. The Anglican Church is to be
  recognized as the official church in Ireland. No
  Catholics are to be allowed to hold public
  office.

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Ethnic divisions in Ireland

• Anglo-Irish descendants of the British nobles
  Anglicans (Episcopalians) who expropriated the
  land and forced labor on the Irish Catholics.
• Scots-Irish, protestants, Presbyterians, imported
  from Scotland, favored by the British, yet
  treated poorly, as laborers in the North. Now
  dominate Northern Irish politics
• Irish Catholics the original Irish, displaces and
  disenfranchised by the British between the 16th
  and early 20th century.

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South Africa

• To keep away Dutch colony away from
  France/Napoleon the British formally take control
  of Cape Town, South Africa and begin movement up
  the East Coast of Africa.
• Napoleon had its eye on India and South Africa
  would have given them a foothold.

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1860s

• Britain Dissolves the East Indian Company, and
  establishes formal political control of India
  (Pakistan)
• In 1875 Britain takes control of the Suez Canal,
  and establishes their economic interest there.
• In the late 19th c. the British force the
  capitulations on the weak Ottoman Empire,
  taking control of choke points along their trade
  route Egypt, Yemen, Iraq, the emirates.

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British Empire at WWI (1/4 of the Worlds
Population falls under British control
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World in 1900
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• China was attempting to form a democracy after
  fall of the Manchus, but was carved up in the
  Open Door Policy and two Opium wars with Britain.
  The U.S., Japan and major European powers glommed
  on.
• Korea was a Japanese colony.
• Taiwan too.

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The division of China
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Spheres of Influence.
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Congress of Berlin 1878 Europe carves up Africa
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By WWI

• Winners in the Industrialization game.
• Britain dominated the seas and most of the rest
  of the world
• Germany had formed under Bismark, began to
  expand, industrialized.
• France had finally established some political
  stability, colonized, industrialized.
• Japan had become a major force in Asia,
  colonizing Northern China, Korea, Taiwan and
  beating Russia in a war.
• U.S. dominated South America and the Caribbean
  and other Spanish colonies (Philippines, Puerto
  Rico, Virgin Islands).
• Neutral
• Russia had expanded, but not industrialized.
• Losers
• The Netherlands (Dutch), Portugal, Spain, the
  Ottoman Empire and Austria-Hungary were slipping
  away into the dust bin of history.

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Britain all dates Circa, its a process.

• Canada (18th c.)
• Australia (1788)
• Ireland (1801)
• South Africa (1805)
• India/Burma/Pakistan (1857)
• Singapore (1819)
• Yemen (Cap)
• Hong Kong/China (latter 19th c.)
• Palestine (Cap)
• Iraq (Cap)
• (Iran kind of, BP, 1913)
• Zimbabwe (Rhodesia, 1880)
• Tanzania (Tanganyika, Germany 1840, Britain after
  WWI)
• Kenya (1890)

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France

• Northwest Africa
• Syria
• Lebanon
• Indochina (Vietnam, Cambodia)

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U.S.

• Puerto Rico
• Virgin Islands
• Philippines
• Economically dominated all of Central America,
  some of South America.
• Hawaii

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Japan

• Korea
• Taiwan
• Parts of Northern China (Manchuria)

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Others

• Portugal
• Angola
• Mozambique, Tanzania
• Netherlands
• Indonesia
• Italy Libya, Somalia
• Germany Namibia, Rwanda, Uganda
• Belgium Congo

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By WWI

• Ottoman Empire had been divided between Russia
  (the Caucuses), Britain (Egypt, Palestine, Iraq,
  Saudi Penn.) and France (Lebanon, Syria) by the
  Capitulations (forced interests in those
  areas).
• Finally finished off after WWI.
• Choose the wrong side to back.

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The Capitulations
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Ottoman Empire

• From the 16th Century to the early 20th Century,
  ethnic Turks (who were Sunni Muslims) from
  Anatolia, or modern day Turkey, invaded
• Syria,
• Palestine/Israel/Lebanon,
• Saudi Arabia,
• Egypt/Sudan,
• Greece,
• Albania,
• Vienna( which they failed, to conquer).

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European Domination 1914