Why was sustained economic growth so rare before the later 18th century and why did this change?

Sustained economic growth was rare before the later 18th century due to several interrelated factors:

1. Agricultural Limitations: The majority of the population was engaged in subsistence agriculture, which had low productivity. Traditional farming methods and lack of technological advancements meant that food production was barely sufficient to support the population, leaving little surplus for trade or investment.

2. Feudal Systems: Many societies were organized under feudal systems, where wealth and power were concentrated in the hands of a few landowners. This system discouraged innovation and economic mobility, as peasants had limited incentives or means to improve productivity.

3. Lack of Infrastructure: Poor transportation and communication networks hindered trade and the movement of goods. Without efficient ways to transport products, markets remained local, and economies were fragmented.

4. Limited Financial Systems: Financial institutions and instruments, such as banks and credit systems, were underdeveloped. This made it difficult to accumulate and invest capital, which is essential for economic growth.

5. Political Instability: Frequent wars, invasions, and political upheavals disrupted economic activities. Stability is crucial for economic growth, as it provides a predictable environment for investment and trade.

6. Technological Stagnation: Technological progress was slow, and innovations that did occur were often not widely adopted. This limited improvements in productivity across various sectors.

The change in the later 18th century, often referred to as the beginning of the Industrial Revolution, can be attributed to several key developments:

1. Agricultural Revolution: Advances in agricultural techniques, such as crop rotation, selective breeding, and the use of new tools, significantly increased food production. This created a surplus that could support a larger urban population and freed up labor for industrial activities.

2. Technological Innovations: The invention and widespread adoption of new technologies, such as the steam engine, mechanized looms, and other machinery, dramatically increased productivity in manufacturing and transportation.

3. Development of Financial Institutions: The growth of banks, stock exchanges, and other financial institutions facilitated the accumulation and investment of capital. This provided the necessary funds for industrial expansion and innovation.

4. Improved Infrastructure: Investments in infrastructure, such as roads, canals, and later railways, improved transportation and communication. This allowed for the efficient movement of goods and resources, expanding markets and fostering trade.

5. Political and Economic Reforms: Many countries underwent political and economic reforms that promoted property rights, reduced trade barriers, and encouraged entrepreneurship. These changes created a more favorable environment for economic growth.

6. Scientific Advancements: The Enlightenment and the Scientific Revolution fostered a culture of inquiry and innovation. Scientific discoveries and their application to industry played a crucial role in driving economic growth.

These factors combined to create a self-sustaining cycle of innovation, investment, and growth, leading to the sustained economic expansion that characterized the Industrial Revolution and beyond.