The Fourth Industrial Revolution continues to receive attention from a wide array of business leaders, investors, and senior public officials. To date, deep work has been largely limited to Karl Schwab and the World Economic Forum. Among economists, industrial revolution has been a central concept in the work of economic historians as 250 years of progress has been explored, most notably the 18th and 19th centuries’ industrial revolutions. However, among economists, not working in economic history, industrial revolution has received little attention. Consequently, the use of an industrial revolution framework as an analytical device is a novel contribution.
The purpose of this book is to understand the growth dynamics experienced across the developed economies over long periods. This book examines the economic logic of such variation—the economic, social, and political forces underlying the variation—and whether the long-term movement is the result of random events or whether improved outcomes arise from within the system. The short answer is that there is some of both. Understanding the economics of long-term growth and using an industrial revolution framework, a view of the conditions required to bring about a future of stronger growth with more equal income distribution may be possible. Imagining a more prosperous future begins with an understanding of the successes and failures of the past.