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EH.NET BOOK REVIEW
Published by EH.NET (August 1997)
Richard A. Easterlin, _ Growth Triumphant: The Twenty-first Century in
Historical Perspective_. Ann Arbor, MI: The University of Michigan Press,
1996. Pp. xiv + 200. $37.50 (cloth), ISBN: 0472106945.
Reviewed for EH.NET by Dora Costa, Department of Economics, MIT.
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In this masterful synthesis, Richard Easterlin (Department of Economics,
University of Southern California) draws on the disciplines of economic
history, demography, sociology, political science, psychology, and the
history of science to present an integrated explanation of the origins of
modern economic growth and of the mortality revolution. His emphasis is
on long-term factors and on similarities across nations. His book should
be easily accessible to non-specialists and will give them a sense of why
economic history can inform our understanding of the future.
Richard Easterlin convincingly argues that technological change underlies
both modern economic growth and the mortality revolution. Underlying this
technological change is a set of procedures and attitudes that include
reliance on experiments and observed facts. In the case of modern economic
growth, this technological change should not necessarily be equated with
industrialization, but rather is simply the introduction of new technology,
including agricultural, in the economy. This technological change has
produced certain commonalities in development, including the gradual
acceleration in real per capita income growth, urbanization, and the growth
of a white collar work force.
According to Easterlin, modern economic growth began before the modern rise
in life expectancy because technological change in the physical sciences
preceded technological change in health and medicine, simply because the
conceptual state of the physical sciences was far more advanced. Easterlin
argues that although modern economic growth may have increased resistance
to disease (for example, by increasing food intake), it also increased
exposure to disease. In contrast, in developing nations the mortality
revolution has often preceded economic growth both because we know how to
control disease (e.g. sewage and clean water) and because the necessary
public health investments are inexpensive. Because urbanization created
demand for public municipal services, he views the rise of government as a
direct consequence of technological change.
Once mortality, particularly childhood mortality, fell, Easterlin argues
that we moved from a society of high to low fertility. At first the
increase in the number of surviving children caused fertility to fall after
families realized that they could achieve their target number of children
with fewer births, then the target number of children fell as children
became more expensive thanks to advances in education, urbanization, and
the introduction of new goods. The population explosion of developing
countries should, therefore, slowly reverse.
Easterlin presents a very optimistic picture of the future, arguing that
modern economic growth will spread to all countries of the world and
neither declining population growth nor an aging population will lead to
economic stagnation. We have the technology and many of the preconditions
for economic growth, such as institutions for the accumulation of physical
and human capital and the mobility of labor and capital, are already
present in developing countries. In an example of the sort of long-run
perspective that the book is best at, Easterlin shows that even the aging
of the baby boomers will not produce a dependency burden that is high by
historic standards.
Within this optimistic scenario, he sees two causes for concern. One is
that the spread of economic growth shifts the balance of power to newer,
more populous developing countries that do not share our commitment to
democracy and human rights and this may produce political as well as
military clashes. The other is that income cannot buy happiness and that
despite previously unimaginable levels of affluence, material concerns are
as pressing as ever. According to Easterlin technology will always produce
new goods that we will want and, because people measure happiness in
relative terms, they will forever be stuck on a hedonic treadmill.
It is this last point, "the triumph of material wants over humanity" that I
found controversial and whenever there is controversy, the drawbacks of a
synthesis become readily apparent. The reader wants to know more, wants
further breakdowns of the data. Easterlin cites surveys that show that
people in both the United States and abroad are no happier than they were
twenty years ago despite increases in per capita income. He also cites
surveys that show that personal income, family, and health are individuals'
primary concerns in all countries surveyed. But, what about recent polls
showing that 48 percent of U.S. workers had either cut back on hours of
work, declined a promotion, reduced their commitments, lowered their
material expectations, or moved to a place with a quieter life during the
preceding five years? What about the tremendous decline in market hours of
work, whether measured in terms of weekly hours, increased vacation time or
sick leave, or increasing number of years spent in retirement? As wages
have risen so has the opportunity cost of these hours. The history of
modern economic growth is not just one of increasing numbers of consumer
goods, but also one of increasing hours of leisure. These hours of leisure
have enabled more and more individuals to achieve some kind of
self-realization. There will always be individuals who will not know what
to do with their free time or spend it in ways we disapprove of, such as
watching television. But, what of the individuals who work in order to be
rock climbers or who teach classes in order to do research? I am not
surprised that when surveyed individuals state that they would like more
money (more is always better than less), but the question that we must ask
is whether they are willing to trade off time that could be spent with
family members or in enjoyable pursuits for more material goods and how
this trade-off has changed over time.
Dora L. Costa
Department of Economics
Massachusetts Institute of Technology
Dora Costa is author of a forthcoming (1998) book, _The Evolution of
Retirement: An American Economic History, 1880-1990_.
Copyright (c) 1997 by EH.Net and H-Net, all rights reserved. This work may
be copied for non-profit educational use if proper credit is given to the
author and the list. For other permission, please contact
[log in to unmask] (Robert Whaples, Book Review Editor, EH.Net.
Telephone: 910-758-4916. Fax: 910-758-6028.)
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