Growth is a topic of much discussion nowadays, but for 99% of human history, the concept did not exist at all. This forms the basis of Oded Galor’s latest book, “The Journey of Humanity: The Origins of Wealth and Inequality”, as he explores how economic growth developed, as well as the origin of global inequalities. To understand the phenomenon, he says we must look far back through human history, going back thousands of years, as development was prone to stagnation rather than constantly evolving.
In the best-selling tome, which has been translated into 31 languages, Galor documents the evolution of growth in an accessible manner. In it Galor explains that although there have always been new inventions and technological progress, these usually only led to prosperity for a short time.
Broadly, when humankind is doing better, there are fewer deaths and the population increases exponentially due to the benefits of progress. However, in the past, this cycle would usually be followed by a drop in population before beginning again, but this “population trap” has only really been overcome in the last two centuries, argues Galor.
Progress has accelerated enormously, leading to a more complex production requiring more knowledge. As a result, parents are more likely to invest in their children’s education, and crucially, families are having fewer children than before.
For more on this fascinating topic, catch up with the interview in full above (in English).
