History’s Hockey Stick: Stagnant Income Before Sustained Growth

Capitalism, Causation, and History’s Hockey Stick

India's Progress in Living Standards and Persistent Poverty (14th Century to Present)

Living Standards Visualization: Pre-1800 Limitations

Intra-Country vs. Inter-Country Inequality in the 14th-17th Centuries

Purchasing Power Parity (PPP)

Latin American Growth

Figure 1.1: The History's Hockey Stick Graph of GDP Per Capita

China's Economic Decline

Modern Global Wealth Hierarchy (2018): Comparisons of Japan, India, Britain, US, and Norway

Britain's Early and Gradual 'Hockey Stick' Kink

Japan's Sharp 'Hockey Stick' Kink around 1870

Pre-1800 GDP Data Scarcity and Its Impact on Historical Graphs

Data Sources for the History's Hockey Stick Graph

Understanding and Interpreting Ratio Scale Graphs

An economist plots the GDP per capita of two countries, Country X and Country Y, from 2000 to 2020 on a graph with a ratio scale on the vertical axis. In 2000, Country X had a much higher GDP per capita than Country Y. However, over the 20-year period, Country Y experienced a significantly faster average annual growth rate than Country X. Based on this information, which statement best describes how the two lines would appear on the graph?

Choosing the Right Economic Visualization

Consider two countries, Country A and Country B. In a given year, Country A's income per person is $40,000 and it increases by $2,000 the following year. In the same period, Country B's income per person is $10,000 and it increases by $1,000. Which of the following statements provides the most accurate economic comparison?

An economic historian is studying two countries, Alpha and Beta, over a 50-year period. She plots their income per person on a graph where the vertical axis uses a ratio scale. The line for Country Alpha starts at a much higher point on the axis than the line for Country Beta. Over the 50 years, the line for Alpha is nearly flat, while the line for Beta is a steep, upward-sloping straight line. What is the most accurate conclusion the historian can draw from this graph?

Evaluating an Economic Analysis

When examining a graph that plots a country's income per person over several decades using a ratio scale on the vertical axis, a straight, upward-sloping line signifies that the absolute (e.g., dollar amount) increase in income per person was constant year after year.

Evaluating an Investment Recommendation

Interpreting Economic Performance

An economic analyst is comparing two countries, Country A and Country B. In 1990, Country A's income per person was ten times that of Country B. Over the subsequent 30 years, Country A's income per person grew at an average rate of 1% per year, while Country B's grew at an average rate of 7% per year. Which of the following statements provides the most accurate analysis of their relative economic situations after this 30-year period?

An economic historian is comparing the long-term development of two nations, Country A and Country B, by plotting their income per person on a graph with a ratio scale on the vertical axis. Historical data reveals the following:

• Country A had a relatively high income per person 300 years ago and has experienced a slow but consistent proportional increase in income ever since.
• Country B had a very low income per person 300 years ago, which remained stagnant for the first 250 years, but has g

Delayed Economic Growth in China and India Until Post-Colonial Independence

Catch-Up Growth of 'Latecomer' Economies: India and China

Figure 3.7: Evolution of GDP per Capita Relative to the US (US = 100) at Purchasing Power Parity (2009–2023)

Britain's Early and Gradual 'Hockey Stick' Kink

Japan's Sharp 'Hockey Stick' Kink around 1870

Delayed or Absent 'Hockey Stick' Growth in Some Countries

Hans Rosling's Video on Divergent National Progress in Health and Wealth

Impact of Resisting Foreign Intervention on Economic Growth: Japan vs. Britain (1600-1975)

Variability of Success in Capitalist Economies

Insufficiency of a Single Model for Explaining 'Hockey Stick' Growth

Germany's Industrialization Strategy: Role of Government and Banks

Japan's Industrial Revolution

Decline in Living Standards in China and India During Europe's Industrialization

Delayed Economic Growth in China and India Until Post-Colonial Independence

An economic historian compares two countries. Country A began a period of rapid, sustained improvement in average living standards around 1870. Country B experienced a similar pattern of rapid growth, but its takeoff did not begin until 1990. Based on these different starting points for sustained growth, what is the most direct and significant consequence for the world today?

Match each country or region to the historical period that best describes when its economy began a sustained, rapid increase in living standards (its economic 'takeoff').

Interpreting Historical Growth Trajectories

Evaluating the 'Great Divergence'

Explaining the Great Divergence

The historical pattern of a long period of economic stagnation followed by rapid, sustained growth in living standards occurred at approximately the same time for all countries.

The graph below shows three stylized long-run economic growth paths for three different countries, labeled A, B, and C. Each path shows a long period of stagnation followed by a sharp upturn in living standards.

[Image of a graph with 'Time' on the x-axis and 'Living Standards' on the y-axis.

• Path A shows a slow, gradual upturn starting relatively early.
• Path B shows a sharp upturn starting later than A.
• Path C shows a very sharp upturn starting much later than A and B.]

Based on histor

Critique of a Statement on Global Economic Growth

An economic historian is studying two regions. From 1700 to 1900, Region A experienced a significant and sustained increase in average living standards. During this same period, Region B, once a major economic power, saw its average living standards stagnate and even decline. What is the most likely relationship between these two phenomena?

An economic advisor argues that for a developing country to achieve rapid growth, it must precisely replicate the economic model of Britain during its initial takeoff period. Based on the historical record of long-run growth, which statement provides the most direct refutation of this 'one-size-fits-all' approach?

Evaluating the 'Great Divergence'