About two hundred and forty years ago, the human species began to experience a wealth explosion. Poor people, who had been living and dying on the edge of starvation for millennia, began to get less poor, and slightly richer people started to become even richer, and much more numerous. Every graph measuring human comfort, wealth, progress, length of life, and so on, switched – historically, in the blink of an eye – from being a nearly horizontal line to being a nearly vertical line. This wealth explosion began in North West Europe, and quickly spread to other parts of Europe and to the USA. Now, poor people everywhere are getting less poor in unprecedentedly vast numbers. It’s a different world, and for just about everyone, a hugely better one.
What caused this wealth explosion? And why did it first erupt where it did, in Europe?
For some time now I have been getting to grips with a new book by Stephen Davies entitled The Wealth Explosion: The Nature and Origins of Modernity.
The central and most striking arguments in this book concern how Europe was – and just as significantly, was not – exceptional, as a potential detonator of this wealth explosion.
Clearly there was something exceptional about Europe, or the wealth explosion that we all now enjoy would not have started here. And equally clearly, all the positive ingredients needed for the explosion had to be present here for it to start happening. But the mere presence of all these positive ingredients, says Davies, is not what made Europe exceptional. Until Europe started exploding economically at the end of the eighteenth century, it had been, globally speaking, an economic and cultural backwater. All of these ingredients – demographic, economic, social, institutional, intellectual, spiritual – had been present, in greater strength and for far longer, in other parts of the world, most notably in China. The economic and cultural centre of the world, at least until the late eighteenth century, was not Europe but rather the lands around the Indian Ocean. So, why did the wealth explosion not happen there?
The answer that Davies supplies in The Wealth Explosion is that Europe was exceptional in being the only one of the world’s great civilisations that was not, at the historical moment when it mattered, politically unified. No European “hegemon” emerged in the centuries just before the wealth explosion got started, in the way that single imperial regimes had emerged to dominate Russia, the Middle East and India, and as had long been in successive imperial command in China.
This was the decisive negative ingredient that Europe possessed but which was lacking elsewhere, and this was what made the difference. The wealth explosion got seriously explosive in Europe because, when it started and from then on, nobody in Europe was powerful enough or motivated enough to stop it. On the contrary, the rulers of Europe never stopped competing with one another, and were therefore strongly incentivised to keep their wealth explosion going, despite all the upheaval that it caused. Economic stasis, and cultural stagnation of the sort that would have stopped the wealth explosion, was not, for the various contending rulers of Europe, an option. They needed guns, guns which had to keep on getting better. They needed money, to pay for the guns, and for the ever increasing numbers of people needed to develop, fire and later to carry the guns into battle. They needed the wealth explosion, no matter how much it was empowering new classes of citizen producers and citizen warriors. So, they let it happen. They even encouraged it. At which point the only way not to be beaten by the wealth explosion was to join it. And there we have it: the modern world.
The above is my best shot at summarising what I think is the most important line of argument in The Wealth Explosion. I had intended to write a single, quite long, mostly glowing review of this book. And I tried, I really tried. But the task defeated me (especially the “quite” long bit). Despite its small size for such a subject (only 248 pages) The Wealth Explosion contains so many interesting ideas besides those summarised above, so much pertinent historical detail, and so many judgements based on the voluminous writings and discoveries of other historians, that I found it impossible to say everything that I wanted to say about it in one blog posting, while remaining confident that anyone at all would want to wade through all that I had written. So, I abandoned the attempt to say everything, and instead decided to make a start by merely saying something. I now intend that there will be several more postings here about The Wealth Explosion (in the manner of these recent postings here by Patrick Crozier about Ulster).
That’s the plan anyway. I’ll end this first posting about The Wealth Explosion by saying that, although I don’t now want to elaborate on why I find the central argument of this book, as outlined above, to be so persuasive, I do find it to be very persuasive, and the book in general to be fascinating. And since the historical event in question is arguably the biggest single fact that there is about the world that we now live in, that makes this a very good book indeed. How do you write an excellent work of grand historical theory? You ask important questions and you supply convincing answers. You support these answers with many other interesting and closely related truths, and with reports of relevant debates among and with your fellow historians. This is what I think Stephen Davies has done.
Meanwhile, to learn more about The Wealth Explosion, read the review of it that Ananya Chowdhury did manage to write, for the Adam Smith Institute blog. Or, read what Stephen Davies himself wrote about his book and its conclusions, for CapX. Or, if you like it when people are good at talking to camera as well as good at writing (Stephen Davies is very good at both), listen to what Davies said to the Cato Institute about his book, as recorded in this video.