Swedish historian and author John Norberg recently published a paper about the rise and fall of golden ages. He is the author of “In defence of capitalism” which we translated into Persian language a few years ago. The recent paper published by Norberg is in response to the MAGA project by raising the tariffs and reducing economic freedom. Norberg mentions the golden ages whether in China or ancient Greece or Rome empire.
Song China’s economy was the richest in the world by 1200, and its merchant fleet had “the potential to discover the world” and a propensity for tinkering that would have ignited the Industrial Revolution centuries before the European one. Then, however, the Mongols arrived.
Though Mongols did not significantly advance China, the Mongol dynasty aimed to maintain the technical wonders of its forebears. China didn’t turn away against itself until the Ming rulers acquired power in 1368. There was no more freedom of movement inside the nation. Forced labor replaced free exchange. Even the construction of seaworthy ships was prohibited, and foreign commerce was penalized. The Ming emperor revived the styles of 500 years ago because he missed the good old days. Men and their barbers were castrated for having the incorrect hairdo. The Ming’s conservative policies were largely to blame for the halving of Chinese revenues between 1080 and 1400. Only after China reopened to the world in the late 20th century did the nation recover.
Greece is another example. In addition to being the cradle of democracy, Athens prospered due to its liberal, by ancient standards, policies. There was just a 2% duty. A former Syrian slave rose to become one of the wealthiest men in the city, proving that foreigners were welcome. According to a metric created by the Canadian think tank Fraser Institute, ancient Athenians had greater economic freedom than anyone in any contemporary state, with Hong Kong and Singapore coming in second and third, respectively. (Until recently, a caveat that applied throughout all Golden Ages was that women and slaves were not entitled to this freedom.)
Rome is another example. By forging alliances and awarding citizenship to conquered tribes, Rome grew stronger. In the heyday of Rome, 400,000 miles of roads carried products from ship to villa, markets were comparatively open, and the enormous empire was administered by a single set of rules. Travel the world or visit Rome if you want to see all of the world’s products, according to a Greek orator who was in awe. Emperor Augustus introduced a flat poll tax and a modest wealth tax. Extra income from hard work or innovation was suddenly subject to a zero marginal tax rate. Not surprisingly, Augustus’s Rome became as rich as Britain and France 1500 years later.But how was the fall of Rome Empire? The emperors, who were short of money, devalued the coins and reduced the silver content. This caused wild inflation. Price controls were then imposed on everything from sandals to lions. Business went slack and people’s income and quality of life deteriorated.
