Railroads and American Economic Growth
Social savings both was introduced and applied to the railroads in a seminal book by economic historian and scientist Robert Fogel. The social savings analysis involved using quantitative methods to imagine what the U.S. economy would have been like in 1890 if there were no railroads. In the absence of railroads, freight transportation by rivers and canals would have been only moderately more expensive along most common routes. America’s canal waterway system might have been expanded and its roads might have been improved as the next best alternative; both of these improvements would reduce the social impact of the railroad. Fogel concluded that the difference in cost (or "social savings") attributable to railroads was negligible - about 2.7% of GNP. This counterfactual history view was vastly different from views proffered by railroad historians and made a controversial name for cliometrics.
Read more about this topic: Social Savings
Famous quotes containing the words railroads, american, economic and/or growth:
“Indeed, I believe that in the future, when we shall have seized again, as we will seize if we are true to ourselves, our own fair part of commerce upon the sea, and when we shall have again our appropriate share of South American trade, that these railroads from St. Louis, touching deep harbors on the gulf, and communicating there with lines of steamships, shall touch the ports of South America and bring their tribute to you.”
—Benjamin Harrison (1833–1901)
“We hear about constitutional rights, free speech and the free press. Every time I hear those words I say to myself, “That man is a Red, that man is a Communist.” You never heard a real American talk in that manner.”
—Frank Hague (1876–1956)
“The Federated Republic of Europe—the United States of Europe—that is what must be. National autonomy no longer suffices. Economic evolution demands the abolition of national frontiers. If Europe is to remain split into national groups, then Imperialism will recommence its work. Only a Federated Republic of Europe can give peace to the world.”
—Leon Trotsky (1879–1940)
“Unlimited economic growth has the marvelous quality of stilling discontent while maintaining privilege, a fact that has not gone unnoticed among liberal economists.”
—Noam Chomsky (b. 1928)