How does Europe still have a lot of money?

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Discussion Overview

The discussion revolves around the question of how European nations maintain their wealth despite the end of colonialism. Participants explore historical, economic, and social factors contributing to Europe's financial status, touching on themes of production, industrialization, and the implications of debt.

Discussion Character

  • Debate/contested
  • Historical
  • Conceptual clarification
  • Exploratory

Main Points Raised

  • Some participants argue that Europe's wealth is rooted in its colonial past, suggesting that plunder contributed significantly to its riches.
  • Others propose that European nations continue to thrive due to their production capabilities and work ethic.
  • A participant emphasizes that wealth should be understood in terms of living standards and the availability of services, rather than merely the amount of money printed.
  • Another viewpoint highlights the role of industrialization as a key factor in increasing wealth, noting that the transition from agrarian to industrial societies facilitated ongoing economic growth.
  • Concerns are raised about the sustainability of wealth in the face of debt and potential defaults, with some participants questioning the long-term implications of current economic practices.
  • There is mention of differing levels of wealth across European countries, with correlations drawn between wealth, democracy, and stability.
  • A participant references historian Niall Ferguson's arguments that competition, scientific advancement, and societal structures played crucial roles in the West's economic success beyond imperialism.
  • Some participants challenge the notion that the loss of colonies significantly impacted European wealth, suggesting that research exists on the subject but is not fully explored in the discussion.

Areas of Agreement / Disagreement

Participants express multiple competing views regarding the sources of European wealth, with no consensus reached on the primary factors contributing to its current economic status.

Contextual Notes

Some claims rely on historical interpretations and economic theories that may not be universally accepted, and the discussion reflects a range of perspectives without definitive conclusions.

  • #31
vici10 said:
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.
 

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