Economic growth occurs when individuals of a society engage in productive, positive-sum games. Conventional measures of growth, however, include measures of positive- and negative-sum games. This paper establishes a framework for distinguishing between productive (positive-sum) and transfer (negative-sum) activity. The role of the Constitution in promoting productive activity is discussed.

This study questions the concept of entrepreneurial failure, traditionally invoked to account for the demise of the Gloucestershire wool trade in the Industrial Revolution. Gloucester clothiers used steam power selectively because of the high cost of coal but on a more regular basis and at greater capacity than scholars have commonly admitted. Excess capacity due to overcapitalization accounted for the failure of mills with large engines; underutilization of steam accounted for the failure of mills with small engines. Both types of failure sprang from rational and entrepreneurial choices, and not from an unwillingness to innovate.

On December 11, 1847, the Journal des chemins de fer, founded and edited in Paris since 1842 by an Englishman, declared that the French rentes had fallen as much as if the government was about to be overthrown. The King, who was ill in body at the time, yet perfectly comfortable in mind, recovered, but on February 24, 1848, he and his government fell in a revolution that was as sudden and dramatic as it was triumphant. Among its leaders were Socialists, like Louis Blanc, who controlled a considerable body of workingmen, some of whom belonged to the building trades and the domestic industries of the capital, while others had been brought to Paris some years before to work on the fortifications. They were moved first to the barricades; then, after being victorious there, to the national workshops organized by Louis Blanc, now a member of the provisional government, who had proclaimed on behalf of the workingmen the “right to work,” as the most important organ of the workingmen, L'Atelier, had proclaimed the limitation of hours, the right to organize, and a minimum wage. These demands seem reasonable to us now, but they were thought dangerous then, not only by a majority of the provisional government, but also by the majority of the new legislature and of the French people.

Is it possible for an underdeveloped area to construct democratic parliamentary organs as the means of allocating central political authority in a society, simultaneously widi the pursuit of rapid economic development? This is what we shall examine in the following discussion. That the problem is of significance can perhaps readily be conceded. It has implications for the colonial policy of those Western nations that still have large territorial holdings in many diverse parts of the globe. It assumes more crucial significance as colonial empires disintegrate under the combined pressures of economic and political demands by nationalists and as competing ideologies find service in the cause of independence.

In the past decade there has been an extremely active interest in theevidence and importance of the twenty-year building cycle, or Kuznets cycle as Lewis suggests we call it, in both American nineteenth-century development and British development after 1870. The evidence of building cycles in the United States is perhaps more extensive and seems clearly, in the research accumulated by Kuznets, Burns and Abramovitz, to indicate a long swing in the general process of growth, not just long swings isolated to the building trades. Whereas American long swings pervade all domestic series of output, income and investment, British experience seems somewhat different. After 1870 long swings in British capital exports alternated with long swings in domestic investment in a fashion which eliminated excess fluctuations in income and output, which would have been due mainly to fluctuations in aggregate demand.

After 1865 Southerners found their communities generally in a state of economic chaos. This was particularly true of the mercantile system. Before the war numerous small towns and villages were in the process of development, and the more localized system of merchandising was reaching out into the general trade. The merchants of the new stores were rapidly cutting into the virtually monopolistic control previously exercised by the system of cotton factorage on which the larger planters depended for supplies, for with the establishment of local stores, cotton planters looked more and more to their home merchants. During the four years of war these local stores were practically forced out of business by a lack of stock. The end of the war brought to the merchant a complete economic revolution. He was now to engage in a system of storekeeping which was unique in every respect except the name. Southern general stores became country stores whether they existed in the country or not, for the bulk of their trade was that of ”country” supply.

This article makes use of nearly one thousand patents to trace the origins and evolution of professional invention in the midwestern harvester industry. These data indicate that professional inventors had become integrated into the industry by the 1870s. This unity of business and invention made firms loci of learning and fostered the rise of a market in technology through which patents and patentees became available.