nicks

The classic work on how property rights leads to wealth is still Adam Smith's The Wealth of Nations, written at the start of the industrial revolution and in the middle of an agricultural revolution. England went from over 80% agricultural workers in 1870 to only 30% in 1800, freeing up labor for the industrial revolution; this occurred largely through capital investments in land improvements, for example draining, marl, and lime (http://www.bahs.org.uk/26n1a1.pdf). Smith captures well the legal changes going on, and that he saw as encouraging capital investment, such as the decline of the guilds, the replacement of primogeniture and the complex system of tenancies in land with alienable fee... (read more)