Can “Dignity” Explain the Industrial Revolution: A Review of Deirdre McCloskey’s Economic Ideas

Posted by dbhalling 8 years, 6 months ago to Economics
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McCloskey’s work focuses on the causes of the Industrial Revolution. She does an excellent job of debunking the idea that capital accumulation or exploitation is the cause of the Industrial Revolution. She has a keen grasp of economic history. Unfortunately, the ability to criticize other ideas is not the same thing as putting forth a coherent theory.
SOURCE URL: https://hallingblog.com/2016/05/22/can-dignity-explain-the-industrial-revolution-a-review-of-deirdre-mccloskeys-economic-ideas/


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  • Posted by Herb7734 8 years, 6 months ago
    I like the concept of the human brain as the tool of human progress. When you come right down to it, that's really the basis for everything. It's man's mind that brings forth every concept of human progress. You can argue about this or that particular item or concept as the one thing that causes progress, but it all boils down to being able to imagine a better way to survive. Neither strength, nor magic, nor heavenly intervention causes progress. Only the mushy, blood-soaked, grey-celled device within our skulls that does it all. That is mankind's basic tool, his glory, and it may wind up as his downfall. It is so powerful that it must be kept from destroying itself and everything else.
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    • Posted by 8 years, 6 months ago
      Yes and when you apply that brain to problem of survival you have to create something
      to solve that problem and that is called an invention (manufacturing is reproduction of inventions).
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  • Posted by Lucky 8 years, 6 months ago
    A good article from dbh as usual.
    I find nothing wrong but I do want to commend McCloskey's ideas as presented -have not looked at the sources. McCloskey gives interesting arguments some of which are wrong but rebuttals leads to real progress.
    I like this concept of Dignity. We can all think of countries and areas where people are poorer but happier cleaner better clothed and sheltered with less crime than surrounding areas. Dignity has many merits, but the link to the Industrial Revolution has not been shown - unless it is in individual and property rights.

    I was thinking of British India. At the time, 18C and 19C, the British gained immeasurably from the wealth of India -but it was not a zero sum game with India also gaining. Could that wealth, as capital, have caused or contributed to the Industrial Revolution? Compare with Spain which for a hundred years had a chain of treasure ships carrying the loot from their empire in the Americas, I have seen an argument that each gold laden ship cost Spain the equivalent of hundreds of thousands of dollars. So no, capital was not the cause.
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    • Posted by $ MichaelAarethun 8 years, 6 months ago
      . What countries fit that description and where are they? Certainly not those who are happy to be thankful for their daily bread and give not thought for tomorrow's slice. Most are filthy, disease ridden and gained their happiness by having absolutely no thought of living a life of dignity the national animal is the fly? You can't have dignity unless the conception of dignity is something far different than I would imagine it to be.

      Some British gained but many of their own citizens were used as slaves to gain that wealth. Starting with the sailors on the ships that transported or protected the fleets.

      Same for Spain, same for Portugal, same for France etc. And certainly not in the USA. Cleaner? One only has to look at the ground for the litter of cigarette butts, beer cans, and hamburger wrappers. Where's the dignity in an nation that can only produce a Clinton or a Trump as their national leaders.

      Are you joking me?

      Ni Modo
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      • Posted by Lucky 8 years, 6 months ago
        Examples! ok-
        Think back to the time when you visited a medium to large city for the first time. My example is Seattle (some years ago). Think about the poorer districts. Area B has broken glass on the ground with cig packets, cartons of flavored milk and beer cans, there are broken windows and screaming kids. Area A has no broken windows but badly needs a coat of paint, front yards are small, some have a few flowers and mowed grass. It seems to have older inhabitants, they wear flannel western check shirts and baggy jeans, most would be on soc security but they have less money, there are no community organizers to assist in rorting. More important, they are not on crack and they buy plain milk. Streets and sidewalks are clean.
        The difference I think is what McCloskey calls- dignity. Maybe it is self-respect.
        Type A people are ok as neighbors, Type B people you would not want two suburbs away.
        Surely, you can name countries that are like that?
        All this is a side issue as to how we get the creativity/innovation of the kind in the industrial revolution. That's what my 2nd para discussed- windfall wealth does not do it, as dbh says.

        -If you always do what you've always done you'll always get what you've always got. -
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        • Posted by khalling 8 years, 6 months ago
          I like your descriptions. Area A is not creating disruptive technology. Neither is Area B. She was clear that the concept of "dignity" (her def) was attributed to large groups. Not individual self-esteem. Let's take Area B. I know plenty of families (not old) that live in similar neighborhoods. They are distrustful of any debt or creative banking options. If they are entrepreneurial, they start small businesses with savings and maybe they did ask some family and friends to go in on the venture to get them started. They do not even know what a venture capitalist does. Their businesses thrive and go bust without any thought to a new model outside of brick and mortar concept. It is sad to see them withering away from small town squares. Where are the small town squares getting revived? Two places. 1. near govt centers where lots of money flows. 2. areas of intense disruptive invention, where lots of money flows. Dignity is not the cause of either. Good evening, Lucky! :)
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        • Posted by $ MichaelAarethun 8 years, 6 months ago
          Great description of a neighborhood called San Jose in California. One could always tell by the trash alongside the road and needed no city limits signs.

          The only clean country I have ever visited of the probably fifty or so is Singapore. but i take your point. Pride and self respect are certainly lacking in Seattle.

          Now I'm on the right track. Thank you.
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  • Posted by mia767ca 8 years, 6 months ago
    ms halling...thanks for the reference to the new book...it shall go on my "to read now" list...i reviewed Vinay Kolhatkar's book "Sharia London" and i am almost finished with his "Frankenstein Candidate"...loved both books....
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  • Posted by $ Olduglycarl 8 years, 6 months ago
    Liberty brings dignity to the individual, equality of opportunity and the liberation of ones mind (not the brain) -(think of it as an expansion into the Mind); together with patients, property rights and capital, all at the right time brought on the Industrial Revolution.
    Just my thoughts...freeing the brain and it's emotions, desires and aspirations from oppression leads one on a path to the Mind and amazing things happen.
    Thanks for the thought provoking piece DB.
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  • Posted by $ jdg 8 years, 6 months ago
    I'd say the invisible hand explains the industrial revolution quite well enough. There was an opportunity, and somebody saw it and grabbed it. That's what intelligence does.
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  • Posted by Maritimus 8 years, 6 months ago
    Hello, DB,
    I would like to add a few observations, even though I do not know what "explains the industrial revolution".
    It seems to me an exercise in futility to search for a single thing, a concept, that would explain the occurrence of what we call industrial revolution. I would suggest that it would help to have a precise definition of what we mean by industrial revolution. In trying to define it, the complexity of the concept would become more visible.
    I would propose a bit of a different perspective. Human species have been around for say a couple of hundred thousand years. I bet there is no single moment in the Earth's running around the Sun for which you could exclaim: "Eureka! A human is born!" Neither ancient Egyptians, starting, say, six millennia ago, nor ancient Greeks, starting, say, twenty eight centuries ago, had developed anything resembling industrial revolution, however we define exactly what we mean by that concept.
    You would agree, I suspect, that there was no hope that industrial revolution could occur in the depth of the darkness we call Middle Ages.
    Renaissance advanced the human condition locally, banking certainly existed and arts and philosophy advanced. But the most important contribution, seems to me, was rejecting the previous darkness and recognizing humaneness and minds of individuals as something beautiful and valuable.
    If I am not mistaken, industrial revolution began in UK and very soon "infected" the US.
    As I said before, there is never going to be one reason for it. But let me try to list some contributing factors, without trying to order them in value or significance: higher levels of mental and manual skills, ease of communication with a common language, relative political and economic freedom, rule of law, relative abundance of food and all sorts of materials all cheaper than could be produced locally, basic scientific knowledge available to at least some, innovations in thinking and doing, partly from necessity and partly from desire for wealth. I hope that this is enough to give you the idea, without any claim of completeness.
    In short (I frequently warn people that I am verbose), I think that you will do the best in finding the "explanation" for "industrial revolution" if you just drop the R ... EVOLUTION.
    With all due respect, submitted by ... polar bear.
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    • Posted by 8 years, 6 months ago
      Was if folly to isolate friction from inertia from gravity?
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      • Posted by Maritimus 8 years, 6 months ago
        Hello, DB,
        Of course not. But, on the same level. friction does not "explain" inertia, nor does inertia "explain" gravity. My reason to add those observations was to support what I think you expressed: "dignity" does not "explain" industrial revolution. I thought that, implicitly, you also questioned the idea that a single concept or "cause" can "explain" the industrial revolution. At best, a single concept is a contributing factor. As you say, a theory might "explain" it, i.e. impart to all of us a comprehensive understanding of how industrial revolution was brought on.
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        • Posted by 8 years, 6 months ago
          It is easy to show that only by creating new inventions do we get wealthier. Inventions are the product of the mind attempting to solve the objective problems of life. Thus the Industrial Revolution had to be a significant increase in inventions. The question is why the rate at which new inventions were created increased so rapidly during the industrial revolution.

          It is clear that anything that inhibits people's ability to use their mind will inhibit invention and therefore economic growth. Thus liberty is important, but the key is property rights for invention. Technically a proper understanding of liberty would include property rights for inventions, but most people are not logical enough to make the connection.
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          • Posted by Maritimus 8 years, 6 months ago
            Hello, DB,
            I agree with you completely. I would add that property rights, taken broadly, not only for the inventor but also for the developer and the applicator, who might be different people, are just as important.
            At least in manufacturing but also, I suspect, in many other fields, there is almost continuous flow of "innovations" that improve the productivities of individuals and enterprises, thus adding to the increase in wealth.
            It seems to me pretty obvious that science was part of the base of sparking the industrial revolution and the invention in it. But then the birth of industrial enterprises had a "feedback loop" into spurring substantial advancements in material sciences in the latter part of the 19th and the beginning of the 20th.
            A classic caricature of the capitalist, to which I was exposed innumerable times in my youth, is that he buys a competing patent and hides in the drawer to prevent the "disruption" of his "monopoly". Certainly, the liberty of the inventor and of the competitors are pretty good protection from the monopolizing. Ever heard of crony capitalism?
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