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Feb 21Liked by Rafael R. Guthmann

Some people believe income growth can be only the result of technological innovation without paying much attention to diffusion and investment.

For example, there is a trope of Medieval Europeans being dirt poor, living in mud huts and covered in pigshit but we know that at the time of the Norman conquest England had 6000 watermills and plenty of pasture for draft animals.

Because of these natural conditions and investments west europeans didn't need to use human muscle for many tasks like grinding cereals or carrying stuff so they had higher productivity and income than other civilizations with a similar technological level but who didn't had as many rivers and pasture land like rainy NW Europe or didn't create conditions for investments in productivity.

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