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Dialogue: 0,0:00:00.40,0:00:03.21,Default,,0000,0000,0000,,♪ [music] ♪
Dialogue: 0,0:00:10.42,0:00:12.39,Default,,0000,0000,0000,,- [Professor Don Boudreaux]\NWhen we tell the tale
Dialogue: 0,0:00:12.39,0:00:15.88,Default,,0000,0000,0000,,of the hockey stick of human prosperity,\Nthe phenomenon of innovationism
Dialogue: 0,0:00:15.88,0:00:18.35,Default,,0000,0000,0000,,plays a leading role in the story.
Dialogue: 0,0:00:18.35,0:00:19.48,Default,,0000,0000,0000,,Think about it.
Dialogue: 0,0:00:19.48,0:00:23.55,Default,,0000,0000,0000,,The steam engine, indoor plumbing,\Npenicillin, semiconductors,
Dialogue: 0,0:00:23.55,0:00:26.76,Default,,0000,0000,0000,,air conditioning, automobiles,\NTVs, airplanes, desktops,
Dialogue: 0,0:00:26.76,0:00:29.96,Default,,0000,0000,0000,,laptops, iPads,\Nsmart phones, the internet --
Dialogue: 0,0:00:29.96,0:00:33.78,Default,,0000,0000,0000,,the list of brilliant inventions\Nfrom the past few centuries is long.
Dialogue: 0,0:00:34.34,0:00:37.50,Default,,0000,0000,0000,,Yet, the number of relatively minor,\Nunsung improvements
Dialogue: 0,0:00:37.50,0:00:40.47,Default,,0000,0000,0000,,is still longer, much, much longer.
Dialogue: 0,0:00:40.47,0:00:44.20,Default,,0000,0000,0000,,I'd personally like to give a shout-out\Nto whoever invented the sealed lunch bag.
Dialogue: 0,0:00:44.20,0:00:46.08,Default,,0000,0000,0000,,You rock.
Dialogue: 0,0:00:46.08,0:00:48.99,Default,,0000,0000,0000,,The great economic historian\NDeirdre McCloskey
Dialogue: 0,0:00:48.99,0:00:52.42,Default,,0000,0000,0000,,coined the term “innovationism”\Nto describe this phenomenon.
Dialogue: 0,0:00:53.11,0:00:55.86,Default,,0000,0000,0000,,She contends that it is\Nthe defining feature
Dialogue: 0,0:00:55.86,0:00:59.08,Default,,0000,0000,0000,,of the past 200 or so years\Nof human history.
Dialogue: 0,0:00:59.08,0:01:03.47,Default,,0000,0000,0000,,Of course, the world had inventors\Nand innovators before the 18th century,
Dialogue: 0,0:01:03.47,0:01:05.87,Default,,0000,0000,0000,,but they were few and far between.
Dialogue: 0,0:01:05.87,0:01:08.68,Default,,0000,0000,0000,,Compared to today, the world\Nbefore the 18th century
Dialogue: 0,0:01:08.68,0:01:12.06,Default,,0000,0000,0000,,was not only very poor, it was also static.
Dialogue: 0,0:01:12.06,0:01:15.46,Default,,0000,0000,0000,,People in, say, 10th century France\Nor 15th century Sweden
Dialogue: 0,0:01:15.46,0:01:18.51,Default,,0000,0000,0000,,lived their entire lives\Nwithout much change.
Dialogue: 0,0:01:18.51,0:01:22.04,Default,,0000,0000,0000,,Their economy, their world,\Nwas pretty much like their parents' world,
Dialogue: 0,0:01:22.04,0:01:25.57,Default,,0000,0000,0000,,which was pretty much\Nlike their parents' world and so on,
Dialogue: 0,0:01:25.57,0:01:27.24,Default,,0000,0000,0000,,for generations on end.
Dialogue: 0,0:01:29.09,0:01:31.65,Default,,0000,0000,0000,,So what caused this orgy of innovation
Dialogue: 0,0:01:31.65,0:01:34.65,Default,,0000,0000,0000,,and the resulting bend\Nin the hockey stick?
Dialogue: 0,0:01:34.65,0:01:37.72,Default,,0000,0000,0000,,Scholars still debate this question today.
Dialogue: 0,0:01:37.72,0:01:39.30,Default,,0000,0000,0000,,Of course, one important component,
Dialogue: 0,0:01:39.30,0:01:41.85,Default,,0000,0000,0000,,as argued by Nobel economist\NDouglass North,
Dialogue: 0,0:01:41.85,0:01:44.77,Default,,0000,0000,0000,,was good institutions,\Nsuch as secure property rights,
Dialogue: 0,0:01:44.77,0:01:47.68,Default,,0000,0000,0000,,non-corrupt courts, and the rule of law.
Dialogue: 0,0:01:47.68,0:01:49.86,Default,,0000,0000,0000,,These institutions laid the foundation
Dialogue: 0,0:01:49.86,0:01:52.55,Default,,0000,0000,0000,,for the resulting expansion\Nof specialization in trade,
Dialogue: 0,0:01:52.55,0:01:55.44,Default,,0000,0000,0000,,which unquestionably fueled\Nthe innovation engine.
Dialogue: 0,0:01:55.44,0:01:59.21,Default,,0000,0000,0000,,However, some scholars contend\Nthat this explanation is incomplete.
Dialogue: 0,0:01:59.21,0:02:02.44,Default,,0000,0000,0000,,For example, some point\Nto improvements in education,
Dialogue: 0,0:02:02.44,0:02:06.02,Default,,0000,0000,0000,,others to the discovery\Nof inexpensive access to reliable energy,
Dialogue: 0,0:02:06.02,0:02:08.25,Default,,0000,0000,0000,,like plentiful coal in England.
Dialogue: 0,0:02:08.25,0:02:11.94,Default,,0000,0000,0000,,McCloskey argues that the vital spark\Nfor all of this innovation
Dialogue: 0,0:02:11.94,0:02:14.27,Default,,0000,0000,0000,,was a change in attitudes.
Dialogue: 0,0:02:14.27,0:02:18.75,Default,,0000,0000,0000,,Specifically, the growing appreciation\Namong ordinary people,
Dialogue: 0,0:02:18.75,0:02:23.30,Default,,0000,0000,0000,,of entrepreneurial innovators,\Nand of the economic changes they unleash.
Dialogue: 0,0:02:23.30,0:02:26.47,Default,,0000,0000,0000,,Rather than celebrate\Nconquerors and kings,
Dialogue: 0,0:02:26.47,0:02:29.26,Default,,0000,0000,0000,,people began to applaud\Nmerchants and inventors.
Dialogue: 0,0:02:30.84,0:02:34.88,Default,,0000,0000,0000,,Whatever the answer, getting it right\Nis of profound importance,
Dialogue: 0,0:02:34.88,0:02:38.08,Default,,0000,0000,0000,,not just because it explains how\Nwe got to where we are today,
Dialogue: 0,0:02:38.08,0:02:41.68,Default,,0000,0000,0000,,but, much more importantly,\Nbecause it is crucial
Dialogue: 0,0:02:41.68,0:02:45.15,Default,,0000,0000,0000,,to helping still poor people\Nreach our high level of prosperity,
Dialogue: 0,0:02:45.15,0:02:47.28,Default,,0000,0000,0000,,as many around the world\Nare still unlucky enough
Dialogue: 0,0:02:47.28,0:02:50.35,Default,,0000,0000,0000,,to live on the handle of the hockey stick.
Dialogue: 0,0:02:50.35,0:02:52.42,Default,,0000,0000,0000,,Voting continues, so please send us
Dialogue: 0,0:02:52.42,0:02:55.58,Default,,0000,0000,0000,,whatever additional, Everyday Economics\Nquestions you have.
Dialogue: 0,0:02:55.58,0:02:58.32,Default,,0000,0000,0000,,Here's the current leader board.\NGo vote and tell us
Dialogue: 0,0:02:58.32,0:03:00.47,Default,,0000,0000,0000,,what topics you want covered next.
Dialogue: 0,0:03:00.47,0:03:03.50,Default,,0000,0000,0000,,♪ [music] ♪