Mon Nov 9 10:10:37 EST 1998
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SAYING GOODBYE TO THE AGRICULTURAL REVOLUTION
Gregory Clark
University of California, Davis
INTRODUCTION
British population more than doubled between 1770 and 1850, and living
standards improved. This implies domestic food output at least doubled
between
1770 and 1850, even allowing for imports. Agricultural workers were 50% of
all
labor in 1770, but 25% in 1850. Thus each farm worker fed twice as many
people
by 1850. Food output per worker must similarly have doubled.
Together these simple arguments generate an agricultural revolution precisely
in the Industrial Revolution period. Britain was twice touched in the
Industrial Revolution years by the hand of providence. This is remarkable
given that there was no connection between the events of the two
revolutions,
the one founded on the mechanical innovations of a bright few artisans in
textiles in the north west, the other on the small scale improvements of
literally hundreds of thousands of farmers throughout the land. The
Industrial
Revolution must not be an accident, but the result of economy wide forces
that
favored growth.
FIVE THESES
Having assembled a mass of data on land rents, returns on capital, wages,
and
prices I have come to the following conclusions about the agricultural
revolution.
1. There was no agricultural revolution. Not in 1770-1850, not in
1600-1770, and not in 1200-1600. Instead from 1500 to 1850 there was a long
slow process by which measured agricultural productivity drifted upwards at
an
average rate of less than 10% in each 50 years - a process so incremental
that
it would be largely unnoticeable in any person's lifetime. This drift
began
long before the Industrial Revolution, and had no connection with the
Industrial Revolution. Its cause seems to be largely an improvement in
grain
yields, some of which may stem from the decline in interest rates between
1600
and 1750 which encouraged more investment in soil fertility.
The rent, wage and price data tell us nothing much happened because
productivity growth has to show up in higher net payments to the factors of
production. Yet in 1700-49 wages relative to agricultural prices were at
90%
of the level in the 1860s, land rents were at 65%, and returns on capital
were
at 120%. Thus in net there was little productivity growth no more than a
25%
gain.
2. Correcting the estimates of the growth of output from agriculture
leads
to much slower growth rates of output per person in England from 1700 to
1860.
At first it might seem mysterious that removing the agricultural revolution
threatens the Industrial Revolution. Agriculture is, after all, reckoned as
only 18% of GNP by 1861. But it turns out that given the way output growth is
calculated in the Industrial Revolution period, removing the agricultural
revolution from the scene cuts the growth of income per capita from 1760 to
1860 from the already pessimistic 65% estimated by Crafts and Harley to a mere
31%. Crafts and Harley, to our surprise, are wild optimists! For a slower
growing agriculture gets much more weight in national income in 1760 or
1700.
Correspondingly the fast growing industrial sector gets much less weight.
The
Industrial Revolution looks more and more like an isolated phenomena of the
textile industries, as opposed to an economy wide transformation.
3. The urbanization and industrialization of Britain in 1760 to 1860
was
not spurred by the release of labor by capitalist agriculture. Instead it
was
compelled by the failure of agriculture to increase output in line with
population, which led to huge imports of food and raw materials from abroad,
and from the domestic coal industry. These imports had to be paid for by
the
production of tradable industrial products. Many of these products were
made
in the new power factories. They would have been made in the old hand
workshops had there not been the mechanical advances of the Industrial
Revolution.
4. The logic of the simple argument in the introduction fails because
it
equates food output with agricultural output. British agriculture did
produce
a lot more food in 1850 than in 1770, but it did so in part by reducing its
output per head of the population of wood for building and fuel, of fiber
and
dyes for clothing, and of fodder for horses. If we do an accounting of
total
domestic consumption of food, fuel, and raw materials in England in 1700
versus
Britain in 1850 we find that in 1700 agriculture produced 95% of domestic
consumption, while by 1850 it was producing only 49%.
5. The reason researchers such as Bob Allen, Mark Overton, and Michael
Turner have found confirmation on the ground that an agricultural revolution
did indeed occur as expected is that they all have focused on grain yields in
measuring output. Grain yields did increase. Yet by 1870 grain was only
about
a third of net agricultural output. People focus on grain yields because the
physical output of meadow and pasture land has been impossible to measure.
Yet
price data suggests that in this large section of agriculture there were no
gains from 1600 to 1860. The ratio of the price of animal products to the
price of hay changes little over these years, suggesting no gains in
conversion
efficiency between feed and output. And the rent of meadow in terms of hay
increases little suggesting little increase in yields.
______________________________________________________________
Gregory Clark
Professor
Department of Economics PHONE 530-752-9242
University of California FAX 530-752-9382
Davis, CA 95616
______________________________________________________________
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