Prosperity from Raw Material 7-20-24

Many undeveloped countries sell their raw material to fund their development. This is obvious when you look at the exports today. There are principles of economics that are repeated throughout history. These can be applied to today’s countries as they continue to pursue prosperity. 

From the fall of Rome in 476AD to 1492, European countries were formed and continued to grow crops, raise livestock and trade. They extracted and consumed raw materials like rocks and trees. They built forts for protection and developed tools and new inventions.

From 476AD to 800AD, they farmed the land to produce food, fought Viking invaders and merged the Catholic Church into its governing model under the Kings of their countries. In 800AD, they formed the Holy Roman Empire under Charlemagne. This move allowed Europe to spend less time in battles and more time to invent things.

Years of Invention

In 900 to 1100 gunpowder was invented in China.

In 1100 the canon was invented.

In the 1200s inventions included eyeglasses 1268.

In the 1300s inventions included the spinning wheel 1350,

By 1400, the Renaissance brought inventions like the printing press 1450, sun dial, waterwheels, muzzle loaded rifles 1475, mechanical engineering, stoves and the compass.

In 1492, Columbus sailed to South America and claimed it for Spain.

By 1500, Spain was joined by Portugal and France to form colonies in America and Holland set up trading companies.

In the 1500s, Europe invented windmills, pocket watch 1513, beer 1568, typewriter 1575, knitting machine 1589.

In the 1500s, Queen Elizabeth I had learned that America was a source for timber needed to build ships and buildings. In the 1570s and 1580s, Queen Elizabeth I granted royal permission to two Englishmen to colonize America. As Spain had laid claim to much of South and Central America, England's attention was directed to the eastern coast of North America.

In the 1600s, England began to form a colony on the East Coast of North America. By 1650 most of the 13 original colonies were well on their way to establishing their borders, their governments, and their economies. The last colony, Georgia, would be established in 1733. Each colony would be unique and self-reliant.

The discovery of America came at a time when Europe was running out of raw material, namely timber. Colonists cut down trees and shipped tree trunks to Britain. Then they set up lumber mills to turn the tree trunks into boards and shipped these to Britain. Finally, they set up Shipbuilding, built Ships and sailed them to Britain and sold them. They were motivated to develop ships that could haul heavy cargo and establish trade across the Atlantic. They also learned that adding value to their products was more profitable.

Like the Romans, the Europeans were ready to conquer land to gain wealth and needed raw material from 1600 to 1800. Also, like the Romans, Europeans pulled back when they ran out of cash. Britain had too much war debt to continue to hang on to the British Colonies. France had too much war debt to hang on to the Louisiana Territories. Spain and Portugal kept their Colonies, but eventually these colonies won their independence and became countries.

Today’s developing countries need to add value to their raw materials, keep their Debt to GDP low and not run out of money.

Norb Leahy, Dunwoody GA Tea Party Leader