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♪ [music] ♪

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- [Professor Don Boudreaux] When we tell the tale of 
the hockey stick of human prosperity, the phenomenon

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of innovationism plays a leading role in
the story. Think about it. The steam

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engine, indoor plumbing, penicillin, 
semiconductors, air conditioning, automobiles,

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TVs, airplanes, desktops, laptops, iPads,
smart phones, the internet. The list of

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brilliant inventions from the past few
centuries is long. Yet, the number of

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relatively minor, unsung improvements is
still longer, much, much longer. I'd

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personally like to give a shout-out to
whoever invented the sealed lunch bag. You

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rock.

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The great economic historian Deirdre
McCloskey coined the term “innovationism” to

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describe this phenomenon. She contends
that it is the defining feature of the

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past 200 or so years of human history. Of
course, the world had inventors and

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innovators before the 18th century, but
they were few and far between. Compared to

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today, the world before the 18th century
was not only very poor, it was also

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static. People in, say, 10th century
France or 15th century Sweden lived their

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entire lives without much change. Their
economy, their world, was pretty much like

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their parents' world, which was pretty
much like their parents' world and so on,

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for generations on end.

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So what caused this orgy of innovation and
the resulting bend in the hockey stick?

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Scholars still debate this question today.
Of course, one important component, as

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argued by Nobel economist Douglass North,
was good institutions, such as secure

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property rights, non-corrupt courts, and
the rule of law. These institutions laid

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the foundation for the resulting expansion
of specialization in trade, which

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unquestionably fueled the innovation
engine. However, some scholars contend

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that this explanation is incomplete.
For example, some point to improvements in

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education, others to the discovery of
inexpensive access to reliable energy,

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like plentiful coal in England.

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McCloskey argues that the vital spark for
all of this innovation was a change in

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attitudes. Specifically, the growing
appreciation among ordinary people, of

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entrepreneurial innovators, and of the
economic changes they unleash. Rather than

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celebrate conquerors and kings, people
began to applaud merchants and inventors.

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Whatever the answer, getting it right is
of profound importance, not just because it

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explains how we got to where we are today,
but, much more importantly, because it is

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crucial to helping still poor people reach
our high level of prosperity, as many

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around the world are still unlucky enough
to live on the handle of the hockey stick.

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Voting continues, so please send us
whatever additional, Everyday Economics

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questions you have. Here's the current
leader board. Go vote and tell us what

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topics you want covered next.

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♪ [music] ♪