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Liberty and dignity explain the 
modern world by Deirdre and 

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McCloskey PhD from Harvard 
University a change in how 

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people honored markets and 
Innovation caused the Industrial

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Revolution. 
And the modern world, the old 

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conventional, wisdom by contrast
has no place for Attitudes about

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trade and Innovation and no 
place for Liberal. 

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Thought the old materialist 
stories says that Industrial 

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Revolution came from Material 
causes from investment or theft 

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or from higher savings rates, or
from imperialism. 

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You heard it. 
Europe is Rich because of its 

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Empires. 
The United States was built on 

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the backs of slaves. 
China is getting rich because of

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trade, but what if, the 
Industrial Revolution was parked

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instead By changes in the way 
people thought, and especially 

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by how they thought about each 
other suppose, steam engines and

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computers. 
Came from a new honor for 

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innovators. 
Not from piling brick on brick 

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or dead African on dead African 
economists and historians are 

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starting to realize that it took
much, much more than theft or 

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capital accumulation to ignite 
the Industrial Revolution. 

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It took a big shift in how 
westerners thought about 

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Commerce and Innovation. 
People had to start liking 

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creative destruction. 
The new idea that replaces. 

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The old, it's like music and you
band gets a new idea in rock 

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music and replaces the old if 
enough people for Ali adopt the 

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new. 
If the old music is thought to 

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be worse. 
It is destroyed by the 

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creativity in the same way, 
electric lights, destroyed 

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kerosene, lamps and computers 
destroyed typewriters to our 

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good. 
The correct history goes like 

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this until the Dutch around. 
Teen hundred or the English 

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around 1700 change their 
thinking, you got honor in only 

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two ways being a soldier or 
being a priest in the castle or 

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in the church, people who merely
bought and sold things for a 

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living or innovated were 
scorned, as sinful cheaters, a 

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Jailer in the 1200s rejected a 
man's plea for Mercy come 

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master. 
Arnaud TSN re you have wallowed 

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in such opulence. 
How could you be without sin in 

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1800? 
The average income per person 

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per day, all over the planet was
in present-day money. 

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Anything from $1 to $5, call it 
an average of $3 a day. 

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Imagine living in present-day, 
Rio or Athens or Johannesburg on

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three dollars a day. 
Some people do even now. 

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That's three. 
Or it's of a cappuccino at 

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Starbucks. 
It was and is appalling, then 

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something changed in Holland. 
And then in England the 

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revolutions and Reformation of 
Europe. 1517 to 1789 gave voice 

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to Ordinary People outside the 
Bishops and Aristocrats 

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Europeans, and then others came 
to admire entrepreneurs like Ben

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Franklin and Andrew Carnegie. 
And Bill Gates, the middle 

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class, started to be viewed as 
good and started to be allowed 

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to do good and do well, people 
signed on to a middle-class deal

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that has characterized. 
Now wealthy places such as 

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Britain or Sweden or Hong Kong 
ever, since let me innovate and 

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make piles and piles of money in
the short run out of innovation.

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And in the long run. 
I'll make you rich and that's 

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what happened. 
In the 1700s with Franklin's 

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lightning rod and W a steam 
engine, and going nuts in the 

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1800's in still not a year, in 
the 2000s, the West, which for 

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centuries, had lag behind China 
and Islam became astonishingly 

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Innovative, give the middle 
class, dignity and liberty, for 

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the first time in human history.
And here's what you get, the 

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steam engine, the automatic 
textile Loom, the assembly line 

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the symphony, orchestra the 
railway, the corporation Abba. 

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Listen, ISM, the steam printing,
press cheap, paper wide 

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literacy, cheap steel cheap 
plate glass, the modern 

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University, the modern newspaper
clean water, reinforced 

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concrete. 
The woman's movement, the 

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electric light, the elevator the
automobile petroleum vacations 

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in Yellowstone, Plastics half a 
million new english-language 

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books. 
A year, hybrid corn, penicillin,

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the airplane clean Urban are 
civil rights open, heart 

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surgery, and the computer. 
The result was that uniquely in 

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history, The Ordinary People and
especially the very poor were 

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made much much better off. 
Remember the middle class deal 

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the Porsche 5% of Americans are 
now about, as well, off in air 

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conditioning and Automobiles, as
the richest 5% of Indians. 

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Now, we're seeing the same shift
play out in China and India 40% 

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of the world's population. 
The big economic story. 

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Of our times is not the Great 
Recession of 2007 to 2009 

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unpleasant, though. 
It was the big story. 

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Is that the Chinese in 1978 and 
then the Indians in 1991 adopted

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liberal ideas in their economies
and welcomed creative 

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destruction. 
Now, their goods and services 

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per person are quadrupling in 
every generation. 

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By now, in the numerous places 
that have adopted, middle-class 

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Liberty and dignity, the average
person makes and consumes over 

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$100 a day. 
Remember two centuries ago. 

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It was three dollars a day in 
the same prices and that doesn't

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take into account of the great 
Improvement in the quality of 

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many things from electric lights
to antibiotics. 

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Young people in Japan and Norway
and Italy are even 

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Conservatively measured terms 
around 30 times better off in 

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material circumstances than 
their great great. 

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Great. 
Great. 

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Great. 
Grandparents. 

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All the other leaps into the 
modern world for democracy, The 

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Liberation of women Improvement 
of life, expectancy greater 

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education spiritual growth. 
Artistic explosion are firmly 

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attached to the great fact of 
modern history. 

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The increase by the two thousand
nine hundred. 

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Went in food and education in 
travel, it is so big. 

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So unprecedented, the great fact
that it's impossible to see it 

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as coming out of routine causes 
such as trade, or exploitation, 

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or investment or imperialism. 
That's what economists are good 

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at explaining routine. 
Get all the routines. 

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Had occurred on a big scale in 
China and the Ottoman Empire in 

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Rome and South Asia slavery was 
common in the Middle East. 

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Trade was large in India 
investment in Chinese canals and

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Roman roads was immense yet? 
No, great fact happened. 

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Something must be deeply wrong 
with explanations of the usual 

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economic sort. 
In other words, depending 

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exclusively on economic 
materialism, to explain the 

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modern world, whether left-wing 
historical materialism, or 

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right-wing, economics is 
mistaken. 

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Ideas of human dignity, and 
Liberty did the trick as the 

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economic historian Joel 
Schumacher. 

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Puts it, economic change in all 
periods. 

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Depends more than most 
economists. 

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Think on what people The 
gigantic material changes or the

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outcome, not the cause it was 
ideas or rhetoric that caused 

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our enrichment. 
And with it, our modern 

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liberties.