Emergence of capitalism since 1700s revolutionized living standards.
Capitalism: Economic system with private property, markets, and firms.
Advances in technology and specialization increased productivity.
Accompanied by environmental threats and global economic inequalities.
Economics studies interactions in producing livelihoods.
Historical Context
Ibn Battuta (14th century) and Jean Baptiste Tavernier (17th century) noted the abundance of resources in India.
At the time, regional wealth differences were less pronounced than social class disparities (e.g., between feudal lords and serfs).
Economic prospects depended more on social class and gender than geographical location.
Modern Economic Status and Inequality
India's economic status has improved significantly over centuries, yet remains poor by global standards.
GDP per capita used to compare living standards internationally.
Notable differences in economic prosperity: Britain significantly wealthier than India, with Americans and Norwegians surpassing British and Japanese incomes.
Data collection critical for economic comparisons and understanding inequalities (e.g., work of Angus Maddison).
Key Topics and Concepts
Income Inequality
Examination of income distribution across different societies.
Measuring Income and Living Standards
Uses GDP per capita as a metric to evaluate economic prosperity.
Growth in Income: History's Hockey Stick
Visualization of GDP growth over time, showing significant increases.
The Permanent Technological Revolution
Ongoing advancements in technology shaping economies.
Economy and Environment
Interplay between economic activities and environmental impact.
Definition of Capitalism
Features private property, market systems, and firms.
Capitalism as an Economic System
Exploration of capitalism's role in modern economies.
Gains from Specialization
Specialization leads to increased productivity and efficiency.
Capitalism and Economic Growth
Capitalism's causal relationship with economic growth.
Varieties of Capitalism
Different institutional structures and government roles within capitalist systems.
Economics and the Economy
Broader understanding of economics beyond market transactions.
Conclusion
Economics offers insights into the evolution of capitalism and its impacts on societies and environments.
Data-driven analyses are crucial for informed economic policies and addressing global inequalities.