Books/The Journey of Humanity: The Origins of Wealth and Inequality
The Journey of Humanity: The Origins of Wealth and Inequality

The Journey of Humanity: The Origins of Wealth and Inequality

Oded Galor

Read June 9, 2022

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A very good but perhaps not great book. Does a good job staying focused on the biggest of human stories, evolution, survival, growth, inequality and the future while remaining interesting throughout.

There is a bold target to hit - a unified theory of humanity from stagnation to sustained growth. Highlighting what underlying forces drive this, by providing deep insights backed by data not just the usual surface level explanations. So, a big topic and clearly one with a positive grand arc! The author clearly sees human progress and thinks it is a good thing, as do I.

It is a good sign that the author comes very close to his goal. I have only minor quibbles thuth be told. We have an engaging and at times original book, with the story of growth told forwards and inequality told backwards - all the way back to Africa, novel. Those first steps out of Africa become very important.

We begin with the evolution of powerful brains, why only once? And move quickly into more economic based talk where the author is more comfortable, yes we have had material
improvements since we walked out of Africa, yet not pet person until recently. Humanity was gripped in the Mathulsean poverty trap until recent centuries.

Material gains driven by more people and a demand for more invention where cancelled out by more mouths to feed until an eqlibrium was established. The data does work consistently when combined with the timing of neolithic and agriculturial revolutions.

We have the big civilisations first in water based areas. Homogenous civilisations. Control, stability. Europe for example could only thrive much later with better technology as competition drove growth and sutible differences in political institutions, coupled with fewer though better educated children, allowed for the escape from the poverty trap.

The escape out of the trap would require a large population size and, population diversity. The core of his original argument and data is this population diversity aspect. The other reasons are well accepted, and if I may say better explained in say Youval Harari's "Sapiens" or individually in specialist books.

The claims on how important genetic diversity is are up for debate. He claims a sweet spot on a hump shaped graph. Not too diverse or a lack of social cohesion hampers growth, nor too homogenous as a lack of niches and variation will do the same, especially once new technologies are added to the mix.

The USA today comes out as the best place to live! The GDP weighting here must have an outsized effect. The author is clear that no one factor is determinate but that they have an cosiderible effect, even now. He states that about a quarter of average income per Capita is due to this diversity, with local climate 20%, diesese prevelance 7%, ethno-cultural reasons 20%, and poltical institutions 10% being the other top drivers. So it's a huge effect if proved true.

It leads to interesting policy questions, can we foster diversity to increase $$$ or drop it in, say Ethiopia for the same reason? The author states that just knowing it is there can allow us to educate and design policy to correct for such cases.

I found the section on Climate change a bit short, pretty much just says will be fine if we get rich as the rich societies in Europe went green per person once wealthy... hmmm I'll need a lot more than that.

Though he was great with data from natural experiments, repeatadly.

Also very good on colonialism - with the brutality highlighted through death rates, and interesting data on the differences of extractive eliete takeover (Spanish in south and central America) vs 'empty land' via genocide (British in North America or Australia) on the development and success of new institutions there. Agrees with Francis Fukiama here on South America. Another good sign.

Insightful on why Western development economics and politics are wrong when enforced on other countries, these are shell copies of western institutions on populations that are not ready, they don't have the social or political bedrock ready yet, deep history won't let it work, not recent history but the distant past. These are good thoughts, something is there no doubt, but I'm sure we have counter examples that disprove it as a rule.

Very good for all who want to understand the journey of humanity, a good update and complement to other famous world histories, but as always more research needed!