Wednesday, May 27, 2009

Market history and investing in high supply-and-demand economies

What drives supply and demand? High wages and cheap energy, asserts Professor Robert Allen in his enlightening book The British Industrial Revolution in Global Perspective. Published last month by Cambridge University Press, this is the first volume in the Economic History Society’s series New Approaches to Economic and Social History.

Why was the Industrial Revolution British?
Robert C. Allen © voxEU.org
15 May 2009

It is still not clear among economic historians why the Industrial Revolution actually took place in 18th century Britain. This column explains that it is the British Empire's success in international trade that created Britain's high wage, cheap energy economy, and it was the spring board for the Industrial Revolution.
Read the article here.

4 comments:

  1. I found your blog from another person's blog links, it's cool.

    Interesting stuff on industry, but I'm wondering what you think of all of this.

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  2. As always interesting facts given in this blog.

    Mind if I link it on my favorite blogs?

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  3. Dear Blogspot neighbour. Your kind and generous link to the modest virtual abode we keep has brought us the occasional pilgrim of The Web, dropping by unexpectedly (though always welcome), and wondering about the esoteric signs encountered here. The patient one may have found a crumb of nourishment behind the cryptic tidings, on their way to the next leg of their journey.

    I always thought that a blog is that kind of thing that everyone is busy writing and no one reads. You proved me wrong. For punishment, I'll go and sit in the sidebar for a while...

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  4. Thank you all for your virtual visits and comments.

    You always will be welcome and more than that we need your input and insights to truly create an agora.

    A response to Anonymous follows.

    A sound investment should be made on strong fundamentals. Studying markets history provides the insights required to find better investment opportunities and invest successfully.
    Seeking analogies in today's world economies to Britain's industrial revolution will be a step forward to investments bonanza.
    Saying all that, it will be rewarding in the future, if someone takes a look to what Goldman Sacks, a US investment bank, coined as BRIC countries (Brazil, Russia, India, and China) for investments ideas.

    A few relevant facts:

    The BRIC countries combined contain 43% of the world's population, and the wages go up as these countries develop giving the population a huge spending power.
    China will deliver over 1 billion new consumers to the global economy over the next 25 years.

    ReplyDelete