Unit 1, Slides and figures

1. Unit 1
THE CAPITALIST REVOLUTION

2. 0
5.000
10.000
15.000
20.000
25.000
30.000
1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000
GDP
per
capita
Figure 1.1a. History’s hockey stick: Gross domestic product per capita in five countries
(1000-2015)
Britain
Japan
Italy
China
India

3. Figure 1.2. The world distribution of income. The height of the bars is the income per
capita (measured in 2005 purchasing power parity dollars) of the population decile
indicated.

4. 250
500
1.000
2.000
4.000
8.000
16.000
32.000
1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000
Ratio
scale:
GDP
per
capita Figure 1.1b – boxes 1, 3-7. History’s hockey stick: living standards in five countries
(1000-2015) using the ratio scale
Britain
Japan
Italy
China
India
China

5. 250
500
1.000
2.000
4.000
8.000
16.000
32.000
1000 1100 1200 1300 1400 1500 1600 1700 1800 1900 2000
Ratio
scale:
GDP
per
capita Figure 1.1b – box 2. History’s hockey stick: living standards in five countries (1000-2015)
using the ratio scale (before interpolation)
Britain
Japan
Italy
China
India

6. Figure 1.5. The economy is part of society, which is part of the biosphere.
PHYSICAL ENVIRONMENT

7. 0,000
0,002
0,004
0,006
0,008
0,010
0,012
0,014
0,016
1852 1872 1892 1912 1932 1952 1972 1992 2012
Fraction
of
articles
Figure 1.7. Mention of the word “capitalism” in New York Times articles (1850-2015).
End of WWI,
Russian
revolution:
1918
Stock
Market
crash:
1929
End of
WWII: 1945
1968
Market
crash: 1987
Fall of Berlin
wall: 1989
Global
financial
crisis: 2008

8. Figure 1.8. Capitalism: Private property, markets and firms.
An economic
system with
private property
and markets and firms
Self sufficient family
based production
Market economy with
family based production
Capitalist economic
system

9. Figure 1.9a. Absolute and comparative advantage in the production of apples and
wheat.
Production if 100% of time is spent on one good
Greta 1250 apples or 50 tonnes of wheat
Carlos 1000 apples or 20 tonnes of wheat

10. Figure 1.9b. Comparing self-sufficiency and specialisation.
Production &
consumption
under self-
sufficiency
Complete specialization: Greta produces only
wheat; Carlos produces only apples; they trade
the surplus of their production above what they
consume
Productio
n
Trade Consumption
(1) (2) (3) (4)
Greta A 500 0 600
W 30 50
0
= 15 + 35
Carlos A 300 1000 = 600 + 400
W 14 0 15
Total A 800 1000
W 44 50

11. 1.500
3.000
6.000
12.000
24.000
1950 1955 1960 1965 1970 1975 1980 1985
Ratio
scale:
GDP
per
capita
in
1990
US$
Figure 1.10. The two Germanies: planning and capitalism (1950-89).
West Germany
Japan
Spain
East Germany

12. Figure 1.11. Divergence of GDP per capita among latecomers to the capitalist revolution
(1928-2015).
South Korea
Argentina
Russian Federation
Botswana
Nigeria
Former Soviet Union
Brazil
0
5.000
10.000
15.000
20.000
25.000
1928
1933
1938
1943
1948
1953
1958
1963
1968
1973
1978
1983
1988
1993
1998
2003
2008
2013
Living
standards
(GDP
per
capita)

13. Figure 1.12. A model of the economy: households and firms.
Outer box should be labelled
BIOSPHERE AND PHYSICAL
ENVIRONMENT (and be sludgy
green)