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“The Worldwide Standard of Living Since 1800”

“The Worldwide Standard of Living Since 1800”. By Richard A. Easterlin. Presented by: Ali Hitomi Santiago Velasquez Neal Tang. A revolution in the human condition is sweeping the world. Most people are better fed, clothed & housed. They are healthier, live longer & are b etter educated

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“The Worldwide Standard of Living Since 1800”

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  1. “The Worldwide Standard of Living Since 1800” By Richard A. Easterlin Presented by: Ali Hitomi Santiago Velasquez Neal Tang

  2. A revolution in the human condition is sweeping the world. • Most people are better fed, clothed & housed. • They are healthier, live longer & are better educated • Women’s lives are less centered on reproduction • Political democracy

  3. This is the greatest advance in the condition of the world’s population ever achieved in such a brief span of time • US, Western Europe & Japan saw large advances in quality of life after Industrial Revolution & Early 20th Century • Less-developed countries saw large advances in during ½ half of 20th century

  4. What constitutes the “standard of living”? • Post-WWII: Measurements:Measured in material terms (goods and services) • Primary measure: GDP/capita Fails to address important aspects of human welfare: • Length of life • Education (literacy)

  5. Current Measurement: “Human Developmental Index” • Level of living   1.0 • Family     2.2 • Health     3.4 • Values/character   4.4 • Job/work    4.4 • Social     6.7 • International    7.3 • Status quo    7.7 • Political    7.9 • Source: UN Human Development Index (HDI)

  6. Milestones of Technological Progress Inventions: 1800-2000

  7. 1768: Steam Engine • Convert chemical energy • into mechanical energy • Innovations • Steamboats • Railroads & trains • Revolutionized transportation and commerce

  8. ~1850: Textile Manufacture • Mechanized spinning/weaving of cotton textiles. • Price of cotton declined 85% (1750-1850) • Time to spin 1 lb cotton declined from 500 to 3 hrs. • Wearing underwear becomes commonplace for first time

  9. Metallurgy: 1800’s Replacement of wood with coal for energy Iron production growth 1760: 34,0001830: 680,0001870: 5,960,000 Innovations BuildingsBridgesRailways

  10. Iron Mill in Pittsburgh, PA: 1909

  11. Dam in Boulder, CO: 1942

  12. Downtown Chicago: 1951

  13. Network Electricity: ~1875 Dynamo: 1870 Light bulb: 1879 Transformer: 1885 AC/DC motor: 1889 Revolutionized transmission & use of energy Thomas Edison and a light bulb

  14. Satellite views of Earth: Developed areas highlighted by nighttime lights (due to innovations in electricity)

  15. Downtown Shanghai: 2002

  16. Mass Production of Autos: 1908 • Henry Ford & Model T • Not inventor of car • Price reasonable for average family • Revolutionized transportation, commerce and travel

  17. Transistor: 1947 Electronic switch is basis for modern computers and telecommunications

  18. ARPANET:1969 Predecessor to the Internet Network created by US Dept of Defense 1969: 4 users1979: 188 users2002: 147 million users

  19. WORLD VIEW: Internet Users

  20. Polymerase chain reaction: 1985 • DNA fragment is rapidly reproduced • Key to genetic engineering • Controversial in 1990’s with genetic engineering in food, animals, etc.

  21. Level of Living Standards

  22. Changes in Standard of Living: 1800-2000 • Quantity of goods consumed grown at unprecedented rate. • Accelerating improvementmost apparent worldwide since the mid-20th century • Living levels doubled or tripled (more in certain cases) • More developed areas: annual growth rate of 2.7 % • Less developed areas: annual growth rate of 2.5 %

  23. To put in perspective, With an annual growth rate of 2.5 % a child has 2x the wealth of their parent at the same age, and 5x more wealth than their grandparent!

  24. Standard of Living: 1800’s

  25. Rural housing in Late 18th century U.S.: • One stay log houses • 1-2 rooms and attic • Fireplace for heating and cooking (no gas/electric heating) • Outhouses for toilets (no plumbing) • Water and wood were fetched (no running water) • Transportation via horse and wagon or walking • “Flooring” made of pounded earth 

  26. Standard of Living: 2000

  27. Average Standard of Living: 2000 • Electricity • Running water/plumbing (not until 1930’s) • Gas/electric heating • Low poverty levels (debate: absolute vs relative poverty) • US Statistics 2002 (worldbank.org) • 142 million Internet users, 625 computer/1000 people • 835 TV’s/1000 people • 667 telephones and 451 cellular phones/1000 people • 68.1% population with complete Secondary Education

  28. In just 200 years, the U.S. has • Cars & planes • Electrical appliances & running water • Telecommunications & computers • Pharmaceuticals & health care • Followers growth are not as advanced, but their rate of change is often much higher than the leaders at a comparable stage. • Example: Japan experienced an annual growth rate of real GDP per capita of 5.7 % from 1958 to 1987 compared to the 2.7 % of the United States. 

  29. Health Changes & Life Expectancy

  30. High Mortality Rates: • 1800’s: • Causes, transmission and cures to diseases were unknown. • Immunization and modern medicine did not exist. • Methods: bleeding (leeches), diuretics, cathartics, emetics. • *Note: Still used in many third-world nations today.

  31. “Before seeing a regular physician, he was bled till symptoms of fainting came on. Took an Emetic, which operated well. For several days after, kept his bowels moved with sulpha, soda, senna tea, etc. “Health care circa 1826 19th Century US Hospital

  32. After 1870: Life Expectancy • Great increases seen in US, UK, AUS, Western Europe • In less developed regions, transition to greater life expectancy much quicker (4 vs 8 decades) in 20th century • Causes for Decreased Mortality • Improvements in standard of living • Evolution of sanitary practices • Medical knowledge & technology advancement *Mustard plaster to cure common ailments *Medicine Kit from the 1800’s

  33. 1930’s: Beginning of Modern Medicine & Sanitary Practice • Immunization (diptheria, smallpox) • Personal hygiene improvements*Regular bathing, hand-washing with soap becomes commonplace for first time. • Mosquito control (malaria, yellow fever) • Water/food control (cholera, dysentery, typhoid fever) by FDA Regulations (1927) • 1940 and beyond: • Penicillin • Without infectious diseases plaguing society populations were able to live healthier, longer lives.

  34. Average Height and Stature: • 1850-1900: +2.3cm • 1900-1950: +5.8cm • (US, UK, AUS, FR, Germany, Japan, Netherlands, Sweden) • Causes: • Disease reduction (esp gastrointestinal disease) • Not so much correlated with GDP/capita increases.

  35. Decreasing Fertility Rates

  36. Fertility reduction gave women… • Personal freedom and independence • Education opportunities • Work (Higher household incomes) • Less childbirth mortality Late 19th Century: Initially high, then low fertility and mortality rates.

  37. 1800’s: Reasons for low fertility: • Malnutrition in women • Prolonged breastfeeding • Planned marriage • Abstinence • Innovations: • Vulcanized rubber: 1844 • Cervical cap: 1838 • Diaphragm: 1882 *Only 1 out of 2 children survived to adulthood.

  38. 1960’s and beyond: Fertility Factors: • In developed regions:Family planning: purposeful decision to limit family size*China: “One-child” Policy (1979)TFR: Decrease 5.99% to 1.76% (1979-1995) • Increased use of new, more effective contraception (birth control pills, latex condoms, etc.) • Innovations: Birth control pills: 1960’s

  39. In less developed areas: 90% had no attempt to limit family size TFR: 1955-1960: Nigeria: 6.90 India: 5.92 TFR: 1995-2000: Nigeria: 5.92 India: 3.45

  40. Schooling- Increasing Literacy Rate

  41. Statistic showed that the education is one of the important factors that is crucial to the level of standard of living. •  Eduation can be consider as the most important form of investment in human capital. • The theory of RETURN TO EDUCATION: • Increase in wages that a worker would receive if he or she had one more year of schooling • For example: Let's set 9th grade to be 10%worker A had 9th grade education and workerB had 8th grade education • It is likely to say that we would expect A to earn 1.10 times more than B would.

  42. However, as an investment, it can be very costly In 2000, US government spent 443 billion on education, private individual spent $164 Billion. Total of 6.2 % of the GDP Pg168 Chart show that the higher the education is, more wages and also who that more people are receiving BA and MA and PHD degree ( higher degree) in the Advance countries than compared with developing countries So, not every one or every countries can afford to invest like this which will create different in education standard.

  43. Good news is the overall education level ( including number of years of schooling, higher education) are increasing all over the world. •  The relationship between eduation ( number of years of schooling) is in an upward correlation between wages • Years of schooling •  Pg 166 showed that since 1950s, the number of people of whom had attended college were increaseing in upward moblility continuiously. •  These data further prove that education is an important factor in rising the standard of living ( both in wages and other area)

  44. Political Democracy

  45. POLITICAL DEMOCRACY Importance of the role of government and its policy ( democracy or communism) Economic growth and democracy pg 358 Democracy may not always be good for economic growth Positive and negative influences of democracy to economic growth ( economic growth leads to rising level of standard of living)

  46. Positive : *limits power of rulers, avoid the worst excesses of kleptocracy. *less likely to have corrupt government offcials.  Negative: *Prone to political instability *politician ( to retain their office) are often tempted to implement policies that produce short run gain rather than long run growth

  47. Case study: China v.s India Why is India, a politically democraticcountry is far less than China, a communism country on the economic term?

  48. Reasons: *China Liberalized its economy and open to the world market ( took a capitalist appoarch) * Although lack of human rights and other democratic aspects, the government is more stable compare with the instablility that India was facing. * Provide policies that would benefits everyone in a long run ( brith control policies, economic policies ) * foregin investor rather invest in countries that is more stable rather than uncertainty such as India.

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