This document discusses the five major ages of economic progress: the hunter-gatherer age, the agricultural age, the industrial age, the information age, and the mobile age. It provides details on innovations that defined each age, like the plow in agriculture and water, wind, and steam power in industry. Laws governing technological progress in the information age are outlined, like Moore's Law on computing power and Gilder's Law on bandwidth increases. Charts show dramatic increases in labor productivity and reductions in the cost of light over history since ancient times. The global economy section notes huge growth in world GDP and trade since 1960 that correlates with rising trade as a percentage of GDP.

2. Macroeconomics
Lecture 19
Five Ages
Light
Open Economy

3. Questions

4. Five Ages
Hunter - Gather
Agriculture
Industrial
Information
Mobile

5. Economic Progress
Innovation
Getting something to
work and think for us.

6. Hunter-Gatherer Age
Muscle Power
Strongest Won

7. Agricultural Age
Animal Strength

8. Plow
Furlong “furrow’s length”
220 yards
by 22 yards
4,840 square yards
43,560 square feet
=
1 Acre

10. Used to pump water
off of potential cropland

11. Industrial Age
Water
Wind
Steam

12. Store
Process
Transmit
Network
Wired
Telephones
Computers
Information Age

15. Internet • Network • Fixed Points

16. Information Age Laws
Moore’s Law:
Power doubles every 18 months
Segate’s Law
Storage doubles every 12 months
Gilder’s Law
Bandwidth doubles every 6 months
Medcalf’s Law
Network value = members squared

17. Information Age Laws
NineYears
2027
Computers 64 x
Storage 512 x
Bandwidth 262,144 x
7 billion internet users

19. Wireless
Networks
Mobile Age

20. Hunter
Gatherer
Agricultural Industrial Information Mobile
Five Ages

23. For the earth is full, and there is
enough and to spare; yea, I prepared
all things, and have given unto the
children of men to be agents unto
themselves.
Doctrine and Covenants 104:17
1834

24. William Nordhaus

25. 41.5 Hours
1750 B.C. 40+ Hours

26. 3 Hours
1820

27. 45 Minutes
1883

28. 49 Seconds
1920

29. 0.43 Seconds
1992

30. 0.16 Seconds
2016

31. Year Technology
Labor Price
(1,000 lumen hours)
Factor
Open Fire 58 hours 1
1750
B.C.
Oil Lamp 41.5 hours 1.4
1830 Tallow Candle 3 hours 19
1883 Carbon Filament Lamp 45 minutes 77
1920 Tungsten Filament Lamp 49 seconds 4,261
1992 Compact Fluorescent .43 seconds 485,581
2010 Light-Emitting Diode .16 seconds 1,305,000

32. Truth Burst Forth in
Radiant Light
The Astonishing Abundance
of Lighting
Since the Restoration

33. “That which is of God is light; and he
that receiveth light, and continueth in
God, receiveth more light; and that
light groweth brighter and brighter until
the perfect day.”
Doctrine and Covenants 50:23–24

36. Global
Economy

37. Since 1960
World GDP grew
7 times
World Trade grew
16 times

38. %
Trade as a % of GDP
22% to 60%
180% increase

39. Imports are paid for
by exports
in the long run

40. Any restriction on
import intimately
reduces exports

41. Arguments against
Free Trade
Infant Industry
Foreign subsidies & dumping
Protecting Jobs
Environment & Safety