Hockey Stick of Human Prosperity

… a core concept in Macroeconomic Policy

Click for MRU video

Click for MRU video

Concept description

The rule of 70 says the doubling time is 70/growth rate and is a useful rule of thumb for quickly calculating the doubling time for something (e.g. population, GDP, internet nodes) that is growing at a constant rate.

The introduction to the MRU video by Don Boudreaux (reference below and link on right) reads:

“In this series, Professor Don Boudreaux explores the question economists have been asking since the era of Adam Smith – what creates wealth? On a timeline of human history, the recent rise in standards of living resembles a hockey stick – flatlining for all of human history and then skyrocketing in just the last few centuries. Without specialization and trade, our ancient ancestors only consumed what they could make themselves. How can specialization and trade help explain the astonishing growth of productivity and output in such a short amount of time – after millennia of famine, low life expectancy, and incurable disease?”

MRU practice questions

See http://www.mruniversity.com/node/62375, accessed 22 April 2016.

  1. Which of the following has not been a cause of rising prosperity?
Source

Don Boudreaux, The Hockey Stick of Human Prosperity, Marginal Revolution University, at http://www.mruniversity.com/courses/everyday-economics/trade-growth-hockey-stick-human-prosperity, accessed 22 April 2016.

Atlas topic and subject

Wealth of Nations and Economic Growth (core topic) in Macroeconomic Policy.

Page created by: Ian Clark, last modified on 22 April 2016.

Image: Don Boudreaux, The Hockey Stick of Human Prosperity, Marginal Revolution University, at http://www.mruniversity.com/courses/everyday-economics/trade-growth-hockey-stick-human-prosperity, accessed 22 April 2016.