News How does Europe still have a lot of money?

[Ryan_m_b]

It worked in opposite direction. Colonialism started before industrialization and made industrialization possible, it provided people and capital for industrialization. Notice mheslep's graph above starts in 1500s, that is considered to be a beginning of European colonialism, for example colonial era in India starts in 1502 with Portuguese.

I don't really think this is true, the first industrial revolution occurred due to a series of technological and logistical developments that led to the mechanisation of the UK textile and metal work industry as well as the widespread deployment of steam power. This trend continued with the mechanisation of most industries, construction of mass transport systems (e.g. canals) and widespread emphasis on entrepreneurs and innovators leading to more sophisticated technologies.

The graph fits the time of the industrial revolutions quite well, not sure about Britain's continuing rise before that but IIRC the East India Company was one of the largest ever and was created around 1600. That might have something to do with it.