It covers damming evidence that both government R&D and international aid produce no overall benefit, in fact they actually cause harm by discouraging individuals from supporting themselves.
How arbitrage (trade) is the engine that drives civilisations to innovate and grow, how their governments eventually stifle them (and how the same thing happens to companies are they grow ever larger).
it is a book about the benefits of change. I find that my disagreement is mostly with reactionaries of all political colours: blue ones who dislike cultural change, red ones who dislike economic change and green ones who dislike technological change.Read more at location 159
The spread of IQ scores has been shrinking steadily – because the low scores have been catching up with the high ones. This explains the steady, progressive and ubiquitous improvement in the average IQ scores people achieve at a given age – at a rate of 3 per cent per decade. In two Spanish studies, IQ proved to be 9.7 points higher after thirty years, most of it among the least intelligent half of the group.Read more at location 286
Put it another way, an hour of work today earns you 300 days’ worth of reading light; an hour of work in 1800 earned you ten minutes of reading light.Read more at location 308
Time: that is the key. Forget dollars, cowrie shells or gold. The true measure of something’s worth is the hours it takes to acquire it. If you have to acquire it for yourself, it usually takes longer than if you get it ready-made by other people. And if you can get it made efficiently by others, then you can afford more of it. As light became cheaper so people used more of it. The average Briton today consumes roughly 40,000 times as much artificial light as he did in 1750. He consumes fifty times as much power and 250 times as much transport (measured in passenger-miles travelled), too. This is what prosperity is: the increase in the amount of goods or services you can earn with the same amount of work.Read more at location 331
Besides, a million years of natural selection shaped human nature to be ambitious to rear successful children, not to settle for contentment: people are programmed to desire, not to appreciate.Read more at location 412
That is what, it is now clear, far too many people and businesses did in the 2000s – they borrowed more from posterity than their innovation rate would support. They misallocated the resources to unproductive ends. Most past bursts of human prosperity have come to naught because they allocated too little money to innovation and too much to asset price inflation or to war, corruption, luxury and theft.Read more at location 459
after studying the issue, that the entire concept of food miles is ‘a profoundly flawed sustainability indicator’. Getting food from the farmer to the shop causes just 4 per cent of all its lifetime emissions. Ten times as much carbon is emitted in refrigerating British food as in air-freighting it from abroad, and fifty times as much is emitted by the customer travelling to the shops. A New Zealand lamb, shipped to England, requires one-quarter as much carbon to get on to a London plate as a Welsh lamb; aRead more at location 621
There is no such thing as unproductive employment, so long as people are prepared to buy the service you are offering. Today, 1 per cent works in agriculture and 24 per cent in industry, leaving 75 per cent to offer movies, restaurant meals, insurance broking and aromatherapy.Read more at location 640
allows us each to consume more and more different things by each producing fewer and fewer is, I submit, the central story of humanity. Innovation changes the world but only because it aids the elaboration of the division of labour and encourages the division of time.Read more at location 690
once cooked, starch gelatinises and protein denatures, releasing far more calories for less input of energy. As a result, whereas other primates have guts weighing four times their brains, the human brain weighs more than the human intestine. Cooking enabled hominids to trade gut size for brain size.Read more at location 765
A single, routine, minuscule Wal-Mart decision in the 1990s – not to sell deodorant in cardboard boxes – saved America $50 million a year, half of which was passed on to customers.Read more at location 1673
In effect, Borlaug and his allies had unleashed the power of fertiliser, made with fossil fuels. Since 1900 the world has increased its population by 400 per cent; its cropland area by 30 per cent; its average yields by 400 per cent and its total crop harvest by 600 per cent. So per capita food production has risen by 50 per cent. Great news – thanks to fossil fuels.Read more at location 2093
(chickens and fish convert grain into meat three times as efficiently as cattle; pigs are in between)Read more at location 2169
The dirigiste mentality that dominated the second half of the twentieth century was always asking who is in charge, looking for who decided on a policy of trade. That is not how the world works. Trade emerged from the interactions of individuals. It evolved. Nobody was in charge.Read more at location 2412
It is common to find that two traders both think their counterparts are idiotically overpaying: that is the beauty of Ricardo’s magic trick.Read more at location 2477
governments gradually employ more and more ambitious elites who capture a greater and greater share of the society’s income by interfering more and more in people’s lives as they give themselves more and more rules to enforce, until they kill the goose that lays the golden eggs. There is a lesson for today. Economists are quick to speak of ‘market failure’, and rightly so, but a greater threat comes from ‘government failure’. Because it is a monopoly, government brings inefficiency and stagnation to most things it runs; government agencies pursue the inflation of their budgets rather than the service of their customers; pressure groups form an unholy alliance with agencies to extract more money from taxpayers for their members.Read more at location 2670
Rural self-sufficiency is a romantic mirage. Urban opportunity is what people want. In 2008 for the first time more than half the people in the world lived in cities. That is not a bad thing. It is a measure of economic progress that more than half the population can leave subsistence and seek the possibilities of a life based on the collective brain instead. Two-thirds of economic growth happens in cities.Read more at location 2783
The economist Pietra Rivoli writes, ‘As generations of mill girls and seamstresses from Europe, America and Asia are bound together by this common sweatshop experience – controlled, exploited, overworked, and underpaid – they are bound together too by one absolute certainty, shared across both oceans and centuries: this beats the hell out of life on the farm.’Read more at location 3219
Two billion people alive today have never turned on a light switch.Read more at location 3420
Though they may start out full of entrepreneurial zeal, once firms or bureaucracies grow large, they become risk-averse to the point of Luddism.Read more at location 3818
A large study by the Organisation for Economic Co-operation and Development concluded that government spending on R&D has no observable effect on economic growth, despite what governments fondly believe. Indeed it ‘crowds out resources that could be alternatively used by the private sector, including private R&D’. This rather astonishing conclusion has been almost completely ignored by governments.Read more at location 3940
As Bruce Ames famously demonstrated in the late 1990s, cabbage has forty-nine natural pesticides in it, more than half of which are carcinogens. In drinking a single cup of coffee you encounter far more carcinogenic chemicals than in a year’s exposure to pesticide residues in food.Read more at location 4357
The history of the world is replete with examples of the extinction or near-exhaustion of resources: mammoths, whales, herrings, passenger pigeons, white pine forests, Lebanon cedars, guano. They are all, note, ‘renewable’. By striking contrast, there is not a single non-renewable resource that has run out yet: not coal, oil, gas, copper, iron, uranium, silicon, or stone.Read more at location 4410
The aid that Zambia has received since 1960, if invested instead in assets giving a reasonable rate of return, would by now have given Zambians the income per head of the Portuguese – $20,000 instead of $500.Read more at location 4611
They could find no evidence that aid resulted in growth in any countries. Ever.Read more at location 4615
Botswana turns out to have secure, enforceable property rights that are fairly widely distributed and fairly well respected. When Daron Acemoglu and his colleagues compared property rights with economic growth throughout the world, they found that the first explained an astonishing three quarters of the variation in the second and that Botswana was no outlier: the reason it had flourished was because its people owned property without fear of confiscation by chiefs or thieves to a much greater extent than in the rest of Africa. This is much the same explanation for why England had a good eighteenth century while China did not.Read more at location 4667
Whether considering fish off Iceland, kudu in Namibia, jaguars in Mexico, trees in Niger, bees in Bolivia or water in Colorado, the same lesson applies. Give local people the power to own, exploit and profit from natural resources in a sustainable way and they will usually preserve and cherish those resources. Give them no share in a wildlife resource that is controlled – nay ‘protected’ – by a distant government and they will generally neglect, ruin and waste it. That is the real lesson of the tragedy of the commons.)Read more at location 4719
The twenty-first century will be a magnificent time to be alive. Dare to be an optimist.Read more at location 5226
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