-
Ideas and Institutions A Growth Story
Speech given by
Andrew G Haldane
Chief Economist
Bank of England
The Guild Society
University of Oxford
23 May 2018
The views expressed here are not necessarily those of the Bank of England or the Monetary Policy
Committee. I would like to thank Shiv Chowla and David Ronicle for their help in preparing the text. I
would like to thank Will Abel, Sandra Batten, Sarah Kinson and Patrick Schneider for their comments
and contributions.
Economic growth has been among the greatest gifts given to us, as individuals and societies. It may no
longer be fashionable to say so. Measures of economic growth, like Gross Domestic Product (GDP), can be
highly imperfect metrics of how well individuals and societies are faring, their subjective sense of well-being.1
And growth in income and output is not, of course, an end in itself.
Nonetheless, it is now pretty well-established that growth is a vital ingredient, indeed pre-requisite, for
meeting many of the broader societal objectives many would view as important to our longer-term health,
wealth and happiness.2 While not an end in itself, economic growth appears to be a vitally important means
of achieving those societal ends.
Economic growth is the main reason why global levels of poverty and rates of infant mortality have fallen
spectacularly over recent centuries. It is why longevity and educational standards have risen secularly over
the same period. And growth may even have contributed to the incidence of global conflicts and wars having
fallen to their lowest levels, perhaps in human history.3
That makes growth a gift, one necessary (if not necessarily sufficient) to deliver secular improvements in
living standards. And it is what makes a good understanding of the determinants and drivers of growth so
crucial for societal progress. By understanding the forces driving growth, past, present and future, we can
begin to devise and implement economic policies that support improvements in society.
I thought I understood the story of economic growth, its drivers and determinants. But recently I have
changed my mind. I have a new story of growth. I think this story carries important implications for
understanding the future challenges of technology and for devising the future policies and institutions
necessary to meet them. That might require, among other things, a repurposing of successful institutions
like this one, turning them from universities into multiversities.
The Story of Growth
The story of economic growth often begins with a chart like this one (Chart 1). This plots the path of global
economic growth, measured by Gross Domestic Product (GDP) per head, over the past 1000 years. And
-
what a story it tells. It is a tale of two halves or, more accurately, a tale of three-quarters and a quarter.4
For the first three-quarters of the past 1000 years, the global economy stood still in growth terms. GDP
growth per head of population averaged less than 0.1% per year. Just try and imagine those rates of growth.
They meant it took more than a millennium for living standards to double.
1
Stiglitz, Sen and Fitoussi (2009).
2
For example, Coyle (2014).
3
Two recent excellent books (Pinker (2018), Rosling (2018)) chart this and other dramatic improvements in societal well-being over
time.
4
De Long (1998).
This growth experience is likely to have had an important psychological, as well as financial, impact. The
average person would not see any improvement in living standards over their lifetime. Their lived experience
People's
was imperceptibly different than their parents, grandparents or indeed great, great grandparents.
lives were lived on a travellator. Rising living standards was not a social norm. Secular stagnation was.
You could argue, with some justification, that measures of GDP at this time might have been missing a trick.
We did not have any formal, statistical means of measuring incomes and outputs in the economy until well
into the 20th century, with the development of the National Accounts. And GDP anyway underplays
people's
important factors shaping well-being, such as levels of nutrition, infant mortality and longevity.5
Yet, as best we can tell, alternative well-being metrics tell broadly the same story.6 Rates of infant mortality
were unchanged over this period. Life expectancy flat-lined at 30 to 40 years. Levels of calorific intake
stood still. And the global population scarcely budged, held in check by unchanged food supplies, as
predicted by Thomas Malthus in the late 18th century.7 Not for nothing was this called the Malthusian era.
Another example of this secular stagnation, a favourite of mine, is provided by plotting heights from
excavated skeletons records. These are a diagnostic on levels of health and nutrition. Male skeleton
heights were essentially unchanged, at 160-170cm, for at least 2,000 years prior to 1750. Humans grew
neither physiologically nor financially. And neither, then, did the societies in which they lived.
That makes the contrast with developments in the last quarter of the millennium all the more striking. From
around 1750, GDP per head suddenly took off and has kept on rising ever since, growing by around 1.5%
transformed people's living
per year. The magic of compound interest means these growth rates have
standards. The time it takes for living standards to double has shrunk to less than 50 years.
The impact on people's well-being, financial and psychological, has been transformational. It has meant
each generation has been around 50% better off than its predecessor. After 1750, generational progress
suddenly became visible, children to parents to grandparents. Growth in living standards became a social
Life's travellator turned into an escalator.
norm, in a way never previously true in human history.
And not just for GDP. Broader metrics of well-being tell a similar tale. Rates of infant mortality have fallen by
40 percentage points since the end of the 18th century.8 The estimated lifespan of a human has risen by a
factor of over two.9 And estimated male skeleton heights have risen by 5-10cm.10 Humans have grown,
financially and physiologically, in lockstep. The world has moved from a Malthusian Era to a Golden one.
5
Stiglitz, Sen and Fitoussi (2009).
6
For example, Clark (2009).
7
Malthus (1798).
8
Our World In Data: https://ourworldindata.org/child-mortality
9
Our World In Data: https://ourworldindata.org/life-expectancy
10
Haldane (2015a).
A Story with One "i"
What explains this extra-ordinary inflexion point in the history of economic growth and living standards? So
fundamental is this question to so much of social and economic history that, understandably, it has attracted
huge amounts of empirical, historical, social and theoretical research. Out of this cloud of evidence, a clear
sunbeam of understanding has emerged about the deep causes and catalysts of economic growth.
If you ask a schoolchild what happened in England around the middle of the 18th century, as I often do, many
will give you the right answer. It marked the dawn of the Industrial Revolution. But what exactly was this a
revolution in and what exactly caused it? In the standard account, the catalyst for this revolution in economic
one "i"
growth came from a single source, from - ideas.11
In the second half of the 18th century in the UK, ideas began sprouting like morning mushrooms. These
ideas emerged seemingly spontaneously and roughly contemporaneously. They were also relatively closely
James Hargreaves' spinning jenny in Richard Arkwright's
clustered geographically. They included 1764,
water frame in 1769 and James Watt's steam engine in 1775.
In the fullness of time, these ideas began to revolutionise both industry and work. After a lengthy adoption
lag, they spread across sectors and across regions. They migrated from being mere ideas to becoming
"GPTs" or
General Purpose Technologies.12 In the process, they generated waves of investment in new
factories, machines, processes and infrastructures. There was, in the jargon, capital-deepening.
Neo-Classical theories of economic growth are very clear what would be expected to happen next.13 When
an outward shift in the economy's technological frontier is combined with higher levels of
physical capital, the
fuse is lit on higher productivity among companies, higher wages among workers and, ultimately, higher
living standards among societies. So it was during the Golden Era.
Chart 2 plots productivity, wages and GDP per head in the UK since the Industrial Revolution. All three
plateaued prior to 1750. Since then, all three have moved up in lockstep. Ideas and innovation have borne
continuous fruit in higher productivity, pay and living standards. This fruit has been shared roughly equally
between owners of companies (profits) and workers in companies (wages). We know that because labour's
share of the national income pie is similar today to 1750.
Of course, it is not ideas and innovation from the 18th century that has sustained growth over the subsequent
-
period. Although the innovation process is continuous, historians often point to three distinct waves three
Industrial Revolutions. The second came in the latter part of the 19th century with the emergence of GPTs
11
For example, Romer (1990) describes a theoretical model of growth based around innovation.
12
Bresnahan and Trajtenberg (1995).
13
For example, Mokyr (2011) discusses Britain during the Industrial Revolution.
such as electricity, the internal combustion engine and sanitation. The third came in the middle of the
20th century with new GPTs such as computing, digitisation and the internet.14
Yet in each case the playbook was familiar from the first Industrial Revolution. The emergence of a new
strain of GPTs resulted in an outward shift in the production possibility frontier and capital-deepening. With
higher levels of investment in physical and human capital, the productivity of companies, the wages of
workers and the living standards of societies continued their Northerly ascent. The Golden Era continued.
Some people are now discussing the next innovation wave, a so-called Fourth Industrial Revolution. The
GPTs driving this are likely to include Artificial Intelligence (AI), Big Data, automation, robotics, 3D-printing
and nano-technology.15 I will return to the Fourth Industrial Revolution when discussing future growth.
A Different Growth Story
As appetising as this growth story sounds, a reading of the history books make it difficult to swallow whole. It
is certainly plausible to think that a divine coincidence of Hargreaves, Watts and Arkwrights, in roughly the
same place at roughly the same time, resulted in a white-hot crucible of creativity. Indeed, we might be
seeing that self-same crucible of creativity in Silicon Valley today.
But the Industrial Revolution was hardly the first firing of that crucible. We have, through history, seen many
episodes of furnace-hot crucibles of innovation, spanning most continents and most centuries.16 Successful
cities, regions, countries, continents and empires of the recent and distant past were often built and
sustained on ideas and innovation and accompanying investment in machines and people.
is a case in point. Some of you will remember the sequence from Monty Python's
The Roman Empire The
which begins with the rhetorical question: "What did the Romans ever do for us?" The sketch
Life of Brian
concludes: "But apart from better sanitation and medicine and education and irrigation and public health and
order...what have the Romans done for us?"
roads and a freshwater system and baths and public
You do not need to go that far back for examples of big ideas which had a transformative impact on industry
and society. Immediately prior to the Industrial Revolution and running chronologically, these included the
windmill in the 12th century, the mechanical clock in the 13th, the cannon in the 14th, the printing press in the
15th, the postal service in the 16th and the telescope and microscope in the 17th.17
It will surprise no-one that waves of innovation, big and small, have been lapping the shores of society for the
entirety of human civilisation. In other words, while ideas and innovation may well be a necessary condition
14
et al
Van Reenen (2010), for example, document the economic impact of ICT.
15
See Bughin et al (2017) and Haldane (2018), for example.
16
Flohr (2016), for example, discusses innovation in Roman society.
17
Clark (2009).
for economic growth, the historical record suggests they may not themselves have been sufficient. Other
forces appear to have been at play, translating these ideas into sustained growth in living standards.
What might those forces be? I want to provide two different, but complementary, lenses on the growth story.
on a rather broader set of -
The first focusses "capitals" not just physical capital (plant and machines) but
human (skills and expertise), intellectual (ideas and technologies), infrastructural (transport and legal
systems), social (co-operation and trust) and institutional (national and civic, private and public) capital.18
History suggests each of these capitals may have played an important supporting role in the story of growth.
Ideas alone, without the support of one or more of these broader capitals, have historically run aground. For
example, in the UK many of the foundations for growth after the Industrial Revolution were laid in the
of "capitals", plural,
centuries preceding it. It was on this platform that ideas and innovation then built.
Take human capital. The most dramatic improvements in educational standards in the UK occurred prior to
1750 (Chart 3). So too did the largest improvements in measures of social, infrastructural and institutional
capital.19 Ideas needed these foundations to flourish. A steam engine is not much use without the skills to
build it, the tracks to run it on, the institutions to oversee it, the trust of the public to accept it. The causes of
the growth inflexion in 18th century England were as much sociological as technological.
Another lens through which to view this alternative growth story has recently been provided by economic
historians, Steve Broadberry and John Wallis.20 Indeed it was probably this lens on the world, above all
others, that led me to change my own story about growth. Broadberry and Wallis do two things.
First, they construct some new estimates of growth going back to 1300. Rather than relying on period
averages, they use higher-frequency measures of growth. This changes the growth picture significantly.
Period averages conceal large, long-lasting swings in growth over time (Chart 4). Their revised measures
suggest growth did not flat-line prior to 1750, even though it averaged zero. Rather, growth oscillated wildly.
Second, given the scale and duration of these oscillations, they decompose their growth data into
"expanding" and "contracting" periods. Chart 5 plots these for the UK over the past 700 years. A broadly
similar pattern of expanding and contracting periods can be found in Spain, France, Italy, Portugal, and the
Netherlands over roughly the same period. This decomposition changes the growth story radically.
Even prior to the Industrial Revolution, economies experienced notable periods of strongly positive growth.
Between 1300 and 1700, GDP expanded slightly more than half the time. Over these expanding periods,
-
growth averaged 5.3% per year. The reason average growth was far-lower over this earlier period indeed,
18
Solow (1956), Mincer (1984), Romer (1990), Iyer, Kitson and Toh (2005), North (1990).
19
Haldane (2015a).
20
Broadberry and Wallis (2017).
-
little more than zero was because expanding periods were almost exactly offset by contracting periods.
They accounted for slightly less than half the period, during which growth averaged minus 5.4% per year.
So what has changed in the period since the Industrial Revolution? Growth during expansion periods is
relatively little changed. Since 1750, it has averaged 3.2% per year. That is in fact a bit less than growth
during expansion periods prior to the Industrial Revolution. This strongly implies it is not the greater
incidence of ideas-fuelled booms after 1750 that accounts for the growth inflexion.
The explanation lies instead in the dramatic fall in both the probability and cost of GDP contractions.
Recessions have occurred only 30% of the time since 1700 and only 17% of the time since 1900. During
minus minus
these periods, growth has averaged 2.2% per year since 1700 and 3.4% per year since 1900.
Since 1750, recessions have become far less frequent and less painful. It is the avoidance of deep
recessions that differentiates the Golden Era from its Malthusian predecessor.
Where does this leave our story of growth? Well, the story that better fits the facts appears to be one in
which the conveyor belt of ideas and innovation has been continuous over the centuries, causing lengthy if
lumpy ideas-fuelled expansions. But whereas prior to the Industrial Revolution this conveyor belt was
regularly halted by recessions, more recently these interruptions have been far fewer and less costly.
Put differently, the real revolution in living standards after 1750 came about not exclusively, or perhaps even
mainly, from the surge in ideas and technologies. Rather, it resulted from societies having found some
means of avoiding the subsequent recessionary bullets. Prior to the Industrial Revolution, these killed
expansions dead. After it, societies appear to have found some effective means of dodging them.
Second "i"
A on Growth
To understand growth, then, we need to explain why economies become less recession-prone after 1750.
"i" -
For me, the explanation lies in a second institutions. I will argue that it was the emergence of institutions
that explains the rise in the other capitals that were essential pre-conditions for growth (human, social,
infrastructural, intellectual etc.) It was the emergence of these same institutions which also cushioned the
damaging effects of recessions. As with sight, to gain a true perspective on growth you need two "i"s.
This is, in one sense, not a new story. A number of distinguished economists have, over the years, placed
institutions centre-stage in explaining secular trends in social and economic development. They include
classical economists such as Adam Smith and John Stuart Mill and, more recently, Nobel Laureates such as
Ronald Coase and Douglass North.21 Broadberry and Wallis themselves conclude that the most likely cause
of fewer downside growth surprises since the Industrial Revolution has been the rise of institutions.
21
Smith (1776), Mill (1848), Coase (1960), North (1991).
Empirical work supports the institutional hypothesis. Cross-country growth regressions suggest nations with
high-quality institutions out-grow those without.22 Detailed country case studies reach a similar conclusion.
For example, institutional quality has been used to explain the very different economic fortunes of North and
South Korea after separation. The absence of institutions is, for some, Why Nations Fail.23
If institutions hold the key, what exactly do we mean by them and how exactly do they come about?
North's "humanly devised constraints that structure political,
Douglass definition is a good starting point:
economic and social interactions".24
So defined, institutions are social infrastructure. They include formal or
legal institutions, like Parliaments, judiciaries, central banks, social safety nets and schools. But they also
include less formal associations and groups, such as universities, trade unions, guilds and charities.
As for their genesis, history suggests institutions emerge for a variety of reasons. Sometimes they have
been a direct response to political upheaval. Some of the largest transformations in political institutions have
resulted from revolutions: in the UK, after the Glorious Revolution of the 17th century, in France after the
French Revolution of the 18th century, in the United States after the Civil War of the 19th century.
At other times, institutions have emerged in response to the pressing financial or social needs of citizens.
Often, those times of most pressing financial and social need have coincided with sharp changes in the
economic environment which have left large swathes of society worse-off. And often, technological
disruption and displacement have been the root cause of these sharp changes in the economic environment.
The three Industrial Revolutions provide a useful set of case studies. Each caused technological disruption
and significant job displacement. Each had, as a result, a wrenching and lasting impact on the job and
income prospects of large swathes of society. Each caused a significant and sustained period of hardship
for many.25 And each caused a stretching of the social fabric, often to close to breaking point.
It is now well-established that each industrial revolution caused a significant loss of livelihood for workers
a "hollowing out"
whose set of tasks was most susceptible to automation. The upshot, often, has been of
jobs across the skill distribution.26 Because reskilling and retraining takes time and effort, job displacement
worsens pay prospects for a great many, significantly and persistently.27 And these losses were often made
worse because they were concentrated occupationally and geographically.28
A second, accompanying adverse side-effect of technological disruption has often been rising levels of
income inequality. Historically, those skilling-up to keep one step ahead of the machine saw demand for
22
Levine and Renelt (1992).
23
Acemoglu and Robinson (2012).
24
North (1990).
25
Haldane (2015b).
26
Katz and Margo (2013), for example, show that skilled blue collar employment in US manufacturing declined while white collar and
unskilled manufacturing employment increased.
27
Autor (2017) documents lower relative wages for those in US most exposed to international competition.
28
Autor (2017).
their skills rise and, with it, their wages. By contrast, those at the other end of the skills distribution saw their
incomes fall, due to reduced demand and increased supply of their skills. The resulting rise in income
inequality has tended, historically, to heighten popular discontent and worsen social cohesion.
A third adverse side-effect was that workers did not always benefit, fully or immediately, from
gains in companies' productivity
technologically-induced and profitability. In the early stages of each
labour's share of the
industrial revolution, wages tended not to rise in line with productivity, causing national
social cohesion. Labour's
income pie to fall.29 This, too, tended to add to popular discontent and damage
income share has also fallen in a number of advanced economies over the past few decades.30
A final side-effect is that periods of technological transition were often lengthy as well as painful. In the first
Industrial Revolution, many displaced workers had still to find alternative work by the middle of the
inequality running high and labour's share
19th century, with income falling. This period is known by
historians as "Engel's pause".31
Subsequent industrial revolutions have seen similar, if less long-lived,
pauses.
If economic hardship is widespread and social cohesion damaged, a societal response is needed. One such
-
response is the creation of new pieces of social infrastructure in other words, institution building. Each
industrial revolution saw a surge in such institution-building, to cushion the adverse side-effects of
technological change on jobs and pay. In this way, the recessionary hit to workers and the economy could
be shortened or dampened. Broadly speaking, two such sets of institution emerged.
One set equipped workers with the new skills they needed to thrive in a new jobs environment. It was only
by acquiring these skills that workers could transition to where new jobs were being created. By keeping one
step ahead of the machine, technological unemployment could be avoided. A shorter, more seamless skills
transition reduced the hit to workers' incomes and lowered the risk of skills atrophy, which might otherwise
"enabling"
cause lasting damage to employment. This social infrastructure might be called institutions.
Another set of institutions provided workers with support to cushion the hit to their finances and well-being
during the painful and lengthy period of job transition. This might be financial support, in income or loans. It
might be housing or shelter. Or it might be social or emotional support. This social insurance ensured that
lives were underpinned, inequalities held in check and the social fabric held together. It reduced recession
These might be called "insuring" institutions.32
risk, for individuals and for societies.
29
Allen (2005) documents the stagnation of real wages in Britain from 1800 to 1840.
30
IMF (2017).
31
Allen (2009) discusses Engels' pause in the context of the British economy from 1760 to 1913.
32
Of course, many other institutions played a role in the labour market beyond the "enabling" and "insuring" ones mentioned
here. For
example, the 'Poor Laws'
in the 1800s meant that the poor had to enter workhouses with terrible conditions to receive help in the form of
clothes and food.
During the first three Industrial Revolutions, the skills workers needed to keep one step ahead of the
machine were largely cognitive. Machines undertook largely manual ("doing") tasks, which had previously
Cognitive
used labour-intensive technologies. ("thinking") tasks remained, by and large, the exclusive
domain of humans. So institutions emerged to nurture thinking skills, largely in children and young adults, to
increase the chances of successful transition to the cognitively-intensive future world of work.
In children, the most important of these institutional innovations was probably compulsory schooling. For
children between the ages of 5 and 10, this was formally introduced in the UK with the Elementary Education
Act of 1880. It was extended to age 11 in 1893 and age 12 in 1899. The Fisher Act of 1918 provided for
compulsory education to age 14 and part-time education to age 18. Compulsory full-time education was
extended to age 15 in 1947 and age 16 in 1972.33
As these pieces of social infrastructure developed, so too did standards of educational attainment and
cognitive skills. The fraction of the population aged 15 and over that attended secondary school rose from
23% to 60% between 1950 and 2010.34 In the 1950s, less than 11% of the relevant age group passed five
or more GCSE O levels in England and Wales. By 2010, that had reached almost 80%.35
Beyond age 18, there was in parallel a rise in both numbers and attendance at universities. For over six
-
hundred years from 1209, England had only two universities this one (Oxford) and the other one
(Cambridge). It was not until the formation of University College London in 1829 that their duopoly was
-
broken. And it was not until the 20th century that some of the other main cities Manchester, Liverpool,
Leeds, Bristol, Birmingham and Sheffield - established their own universities.36 Today, there are around 130
universities in the UK as a whole.
Participation rates in higher education have also undergone a secular rise and, latterly, a revolution. The
share of young people attending university has increased from just over 3% in 1950 to over 8% in 1970, over
19% in 1990, 33% in 2000 and 49% by 2016.37 Having been less than 5,000 in 1920, the number of first
38
degrees obtained at UK universities had increased to over 365,000 by 2016.
Through the rapid rise in school and university attendance, there was a revolution in cognitive skills in the
workforce. That provided the human capital necessary to turn new technologies and machines into higher
levels of productivity among companies, higher wages among workers and, ultimately, higher living
standards among societies. Put differently, higher cognitive skills reduced the odds of a lengthy
recessionary period of technological unemployment for many individuals and societies.
33
Legislative dates for compulsory schooling vary from dates of enforcement.
34
Barro-Lee Educational Attainment Dataset: http://www.barrolee.com/
35
Bolton (2012).
36
Willetts (2017).
37
Bolton (2012) for data from 1950 to 2000. 2016 data from Department of Education.
38
Bolton (2012) and Universities UK (2017). Refers to full-time first degrees only.
Raising levels of skills and training for workers is one way of limiting the costs of technological disruption.
Providing them with access to finance or housing is another. This support helped smooth the hit to incomes
and lifestyles brought about by job displacement. Starting in the late 18th and early 19th centuries, at the
dawn of the Industrial Revolution, financial institutions began to emerge to provide financial support through
bridging loans, often operating on collective or co-operative principles. In the UK, the Friendly Societies Act
of 1819 established today's credit unions. The Regulation of Benefit Building
Societies Act followed in 1836.
Other sets of institution emerged to support workers in wider ways. Trade unions grew in importance during
jobs were
the 18th century, as workers' hollowed-out and their share of the income pie was consumed.
Unions gained rights progressively during the 19th century, culminating in the foundation of the Trade Union
Congress (TUC) in 1868. The Trade Union Act of 1871 gave unions fully-fledged legal status.
Trade unions helped workers by campaigning to protect their rights, improve their conditions and boost their
bargaining power in the workplace. They also provided direct financial support to unemployed workers,
through an early form of unemployment insurance, to smooth the income consequences for workers of job
loss. The National Insurance Act (1911) and the Beveridge Report (1942) subsequently made this a
responsibility of the state and put it on a comprehensive footing.
This was part of a wider-ranging shift in the role played by the state in society from the 17th century onwards.
State spending as a proportion of national income rose from around 1% in the 16th century to around 12% in
the 18th, 14% in the 19th and 33% in the 20th.39 It financed social infrastructure of various kinds supporting
those facing greatest hardship. This ranged from social housing to healthcare to income support. Its effect
was to cap the downside, recessionary risk to individuals, economies and societies.40
Another form of institutional support came from the creation of state-owned and/or central banks. The Bank
of England was set up at the end of the 17th century to manage the government's debt and safeguard the
nation's currency and finances. Over the course of subsequent centuries, this role has expanded. Since at
least the middle of the 19th century, the Bank of England has become one of the key institutional safeguards
against recession risk and financial crisis.41 Indeed, today, those roles are defined in statute.
Non-state institutions have also played an important role in protecting those facing the adverse side-effects
of economic change. This included many religious, philanthropic and charitable organisations and citizen
movements that emerged from the 18th century onwards, often as a direct response to hardship brought
about by technological change. These institutions offered, and many continue to offer, a combination of
financial, housing, training and emotional support to those in need.
39
Clark (2009). Figures refer to government command of output as a percentage of GNP in England.
40
Other 19th century legal changes that supported individuals from adverse side-effects of economic change included recognition of
limited liability companies and constraints on the ability of courts to sentence debtors to prison.
41
Anson et al (2017), for example, discuss the emergence of the Bank of England as lender of last resort.
the Young Men's Christian Association (YMCA) was founded in
To mention one, 1844, at around the time of
Engels' pause. It was established explicitly to meet the housing and social needs of young men who had
moved from rural towns and villages to find work in factories in the cities. It soon grew into a regional, and in
time global, network offering financial, housing, training and social support, to both men and women,
cushioning the recessionary hit to societies. And that remains its role today.
The story, then, is of a social infrastructure emerging to support workers and societies buffeted by
technological change. These instit