Economic effects of technological progress in the early classical period (1800-1840) : A synoptic review
Part of : Αρχείον οικονομικής ιστορίας ; Vol.XVII, No.2, 2005, pages 29-61
Issue:
Pages:
29-61
Author:
Abstract:
The issue of technology played a significant role, not only in the development of Political Economy, but furthermore in explaining a variety of significant developmental processes. The main purpose of this paper is to analyse and evaluate the various ideas and arguments presented by economic thinkers of the early Classical period –e.g. during the time of advanced industrialization in Britain (1800–1840)– concerning the various economic effects of “machinery”. These effects are analysed and discussed under the following headings which comprise the relevant sections of the paper: (1) the effects on productivity and the level of prices; (2) the effects on the rate of profits and investments; and 3) the effects on the rate of real wages and the level of employment. These effects, moreover, are examined in the light of various empirical findings and with respect to some modern theoretical conclusions. From this analysis we can deduce that many economic thinkers of the period in question (mainly British) had recognized and analysed the majority of those economic effects caused by the introduction of new technology and had incorporated them into the corpus of Political Economy.
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Subject (LC):
Keywords:
Technological effects, classical economics, unemployment
Notes:
JEL classification: B12, O30
