Key Takeaways
1. Liberalism and innovation sparked unprecedented global prosperity
Give people liberty, and by uncoerced cooperation through commerce they become adults, enriched in body and soul.
Liberalism unleashed creativity. The adoption of liberal ideas in northwestern Europe during the 18th century led to an explosion of innovation and economic growth. This "Great Enrichment" was characterized by:
- A shift from aristocratic to bourgeois values
- Increased social and economic mobility
- The celebration of commerce and entrepreneurship
- Protection of property rights and individual freedoms
Innovation became the engine of progress. The liberal environment allowed for:
- Rapid technological advancements
- New business models and organizational structures
- Increased productivity across all sectors
- A culture that rewarded creativity and risk-taking
2. The Great Enrichment: A 3,000% increase in living standards since 1800
In 1800 worldwide, the miserable average of production and consumption per person was about $3 day. Even in the newly prosperous United States, Holland, and Britain, it was a mere $6.
Unprecedented growth in wealth and well-being. The Great Enrichment led to:
- A 30-fold increase in average incomes in developed countries
- Dramatic improvements in health, education, and life expectancy
- Reduction in extreme poverty from 90% of the global population to less than 10%
- Widespread access to goods and services once reserved for elites
Quality of life improvements. Beyond income, the Great Enrichment brought:
- Better housing, sanitation, and nutrition
- Increased leisure time and opportunities for personal development
- Longer, healthier lives for billions of people
- Greater individual freedom and social mobility
3. Debunking pessimism: The world is getting better, not worse
The world has been enriched. But for whom? Cui bono? asked the Romans: "Whose benefit?" Answer: Yours, and more and more of your fellow humans, with a believable promise that the whole world will presently become rich and free.
Progress is real and measurable. Despite popular pessimism, data shows consistent improvements in:
- Global poverty rates
- Child mortality
- Access to education and healthcare
- Environmental protection and sustainability
- Political freedom and human rights
Challenges remain, but trends are positive. While problems persist, the world is better equipped to address them:
- Technological solutions to environmental challenges
- Increasing global cooperation on shared issues
- Rising education levels enabling better problem-solving
- Economic growth providing resources for social investments
4. Ethics and rhetoric, not exploitation, drove economic progress
Slavery was extraordinarily evil, we now all agree. But slavery was not extraordinarily profitable.
Debunking exploitation narratives. Contrary to popular belief:
- Imperialism and slavery did not drive economic growth
- Most historical exploitation was economically inefficient
- Trade and voluntary exchange created more wealth than conquest
The power of ideas and values. The real drivers of progress were:
- Changing social attitudes towards commerce and innovation
- The spread of liberal ideas valuing individual rights and freedoms
- A new rhetoric celebrating entrepreneurship and progress
- Ethical frameworks that balanced self-interest with social good
5. The Bourgeois Deal: "Leave me alone and I'll make you rich"
Leave me, a bourgeois businessperson, pretty much alone, subject to sober ethics learned at my mother's knee, and a few good and restrained laws, with an effective social safety net. In a word, give me and my fellow citizens liberty.
The essence of the Bourgeois Deal:
- Freedom to innovate and pursue business opportunities
- Limited government intervention in the economy
- Protection of property rights and contract enforcement
- Social acceptance of profit-seeking as a legitimate activity
Benefits of the Bourgeois Deal:
- Encourages entrepreneurship and risk-taking
- Leads to rapid innovation and economic growth
- Creates wealth that "trickles down" to all levels of society
- Provides incentives for solving social and environmental problems
6. Challenging conventional explanations for the Great Enrichment
Economizing means "choosing the better way of doing it overall—Plan A rather than Plan B." What is "better," said the economists of the 1870s, is not "using the least labor" (Smith missed the point, and it led to a sadly mistaken picture of the economy as a supply chain, a picture believed always by the man in the street and by the statist enthusiasts for industrial policy).
Debunking common myths. The Great Enrichment was not primarily caused by:
- Natural resources or geographical advantages
- Exploitation of colonies or slave labor
- Accumulation of capital or savings
- Scientific discoveries or technological breakthroughs
- Government industrial policies or central planning
The real drivers of growth:
- Liberal institutions protecting individual rights
- A culture celebrating innovation and entrepreneurship
- Decentralized decision-making and market competition
- The power of ideas and changing social attitudes
7. Ideas matter: How changing values revolutionized the economy
People gradually stopped attributing this man's riches or that woman's poverty to fate or politics or witchcraft—at any rate, enough to stop the throttling of what the Nobel-worthy economist William Baumol in 2002 called The Free Market Innovation Machine and what the Nobel-winning economist Edmund Phelps (2013) called "the imaginarium"; namely, the Bourgeois Deal and its result in betterment.
The power of shifting mindsets. Economic growth was driven by:
- A new respect for commerce and entrepreneurship
- The idea of progress and human betterment
- Valuing innovation over tradition
- Belief in individual agency rather than fate
Cultural changes enabled economic transformation:
- Redefinition of social status based on achievement rather than birth
- Acceptance of "creative destruction" as a positive force
- Celebration of middle-class values and work ethic
- Spread of literacy and education, fostering new ideas
8. The virtues of commerce: Adam Smith's ethical framework
Smith's great project in all his writing was to develop a full and temperate ethic for a commercial society—not to reduce all behavior to a selfishness suited to grass and rats.
Beyond "greed is good". Adam Smith's true vision:
- Commerce as a moral and civilizing force
- Balancing self-interest with social good
- Emphasis on virtues like prudence, justice, and benevolence
- Markets as systems of cooperation, not just competition
Smith's ethical capitalism:
- Recognizes the moral worth of ordinary people
- Promotes social cooperation through voluntary exchange
- Encourages personal responsibility and self-improvement
- Sees wealth creation as a positive-sum game benefiting society
9. Liberalism as a theory of adulthood and human dignity
If liberalism is the theory of being an adult, nationalism and socialism are nostalgic longings for the comforts of childhood.
Liberalism empowers individuals. Key aspects:
- Treating people as responsible adults capable of making decisions
- Respecting individual rights and freedoms
- Promoting equality of opportunity, not outcomes
- Encouraging self-reliance and personal growth
Contrasts with paternalistic ideologies:
- Nationalism: Seeks security through collective identity and strong leadership
- Socialism: Promises care and protection through state control
- Both limit individual agency and responsibility
- Liberalism balances freedom with social cooperation
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FAQ
What’s "Leave Me Alone and I’ll Make You Rich" by Deirdre Nansen McCloskey about?
- Central Thesis: The book argues that the Great Enrichment—an unprecedented rise in global wealth and living standards since 1800—was primarily caused by a shift in ideas, ethics, and rhetoric that valued liberty, dignity, and innovation, not by capital accumulation, institutions, or imperialism.
- Bourgeois Deal: McCloskey introduces the "Bourgeois Deal," where ordinary people are granted dignity and freedom to innovate and trade, leading to widespread prosperity.
- Optimistic Outlook: The authors maintain that if societies continue to embrace true liberalism—defined as personal and economic liberty—further enrichment and human flourishing will follow.
- Revaluation of Commerce: The book traces how society’s view of businesspeople shifted from contempt to honor, enabling innovation and economic growth through voluntary cooperation.
Why should I read "Leave Me Alone and I’ll Make You Rich" by Deirdre Nansen McCloskey?
- Challenges Pessimism: The book confronts common pessimism about poverty, inequality, and environmental decline, providing evidence that global well-being is improving.
- Debunks Economic Myths: It clarifies misconceptions about the causes of economic growth, showing that ideas and ethics, not just material factors, drive prosperity.
- Hopeful Framework: Readers gain a nuanced, optimistic understanding of how liberty and ethical markets can continue to improve lives worldwide.
- Comprehensive Historical Analysis: The book offers a rich narrative spanning economics, culture, and ethics, making it valuable for anyone interested in the roots of modern prosperity.
What are the key takeaways from "Leave Me Alone and I’ll Make You Rich"?
- Liberty Drives Growth: Human liberty and classical liberalism are necessary and nearly sufficient for the Great Enrichment, enabling innovation and voluntary cooperation.
- Ideas Over Capital: Changes in ethics, rhetoric, and ideology—especially the "Bourgeois Revaluation"—were more important than capital, institutions, or coercion.
- Poverty Is Declining: Global poverty has dramatically decreased, with the formerly poor benefiting most from economic growth driven by liberal ideas.
- Markets Embody Morality: Markets are not amoral; they embody virtues like justice and prudence and can foster cooperation and love.
- Optimism Over Pessimism: Historical fears about stagnation, inequality, and environmental doom have been repeatedly proven wrong by continued liberalism and innovation.
What is the "Bourgeois Deal" in "Leave Me Alone and I’ll Make You Rich"?
- Definition: The Bourgeois Deal is a social contract where ordinary people are granted dignity, liberty, and permission to innovate and trade freely, leading to economic betterment tested by profit and loss.
- Contrast with Other Deals: It stands in contrast to aristocratic, communist, welfare-state, and bureaucratic deals, which rely on coercion or top-down control and often stifle innovation.
- Ethical Foundation: The Deal is grounded in virtues like honesty, justice, and prudence, making commercial success honorable and encouraging innovation.
- Economic Impact: By allowing many to "have a go," the Bourgeois Deal broke down barriers of birth and privilege, enabling widespread prosperity.
How does Deirdre Nansen McCloskey explain the Great Enrichment in "Leave Me Alone and I’ll Make You Rich"?
- Not Material Causes: The book rejects explanations based on resources, property rights, thrift, schooling, science, imperialism, or slavery as primary drivers.
- Ideas and Ideology: It credits a change in ethics, rhetoric, and ideology—liberalism—that emerged in northwestern Europe, giving ordinary people permission to innovate and engage in commerce.
- Innovism and Profit Test: The new liberalism supported "innovism," where ideas are continuously tested by profit and loss, enabling persistent betterment.
- Cultural Transformation: The revaluation of commerce and the bourgeoisie was central to unleashing human creativity and economic growth.
What evidence does "Leave Me Alone and I’ll Make You Rich" provide against common pessimisms about progress?
- Poverty Reduction: The book cites data showing global poverty rates falling from 50% in 1966 to 9% in 2017, with rising life expectancy and literacy.
- Declining Violence and Environmental Improvement: War deaths have plummeted, terrorism is exaggerated, and pollutants like sulfur dioxide have decreased in rich countries.
- Economic Growth Persistence: Despite repeated predictions of capitalism’s demise, economic growth has continued, especially in countries adopting liberal reforms.
- Technological Unemployment Fears: The authors argue that fears of mass unemployment from automation misunderstand the benefits of creative destruction, which historically helps the poor.
How does "Leave Me Alone and I’ll Make You Rich" by Deirdre Nansen McCloskey view the role of markets and ethics?
- Markets as Moral Systems: Markets are not just mechanisms but embody norms and virtues such as faith, hope, love, courage, justice, temperance, and prudence.
- Love and Cooperation: Trade can foster love and mutual benefit, not just selfishness, as seen in the concept of "storgê" (affection).
- Limits of Markets: The book agrees that some things should not be bought or sold, but argues that the problem is not market exchange itself but the moral context.
- Ethical Market Economies: Markets can coexist with ethical considerations, and their success depends on the virtues and values of participants.
What does "Leave Me Alone and I’ll Make You Rich" say about the environment and economic growth?
- Environmental Progress: The book presents data showing reductions in pollution and disaster deaths in wealthy countries, attributing improvements to wealth generated by liberal economies.
- Limits to Growth Misunderstood: Fears of finite resources and population limits are countered by human ingenuity and substitution, as with whale oil replaced by petroleum.
- Climate Change Perspective: While acknowledging climate change, the authors argue it is not existential and that continued economic growth will provide resources to address environmental challenges.
- Wealth Enables Solutions: Prosperity from liberalism equips societies to solve environmental problems more effectively.
How does "Leave Me Alone and I’ll Make You Rich" address inequality and redistribution?
- Absolute vs. Relative Income: The book emphasizes that absolute material standards of living matter more ethically than relative inequality or envy.
- Growth Over Redistribution: Economic growth, not redistribution, is the main driver of poverty reduction; excessive taxation of the rich can harm everyone.
- Envy as a Sin: The authors warn against envy, arguing it distracts from helping the truly poor who live on less than $1.90 a day.
- Focus on the Poor: The book advocates prioritizing the well-being of the poorest rather than obsessing over relative gaps.
How does Deirdre Nansen McCloskey differentiate liberalism from other political ideologies in "Leave Me Alone and I’ll Make You Rich"?
- Classical Liberalism Defined: The book uses "liberalism" in its original sense—no involuntary masters, personal and economic liberty, equality of permission, and minimal coercion.
- Rejects Modern US Liberalism: It distinguishes this from the US sense of liberalism as bigger government and from Latin American military tyranny, both of which are criticized.
- Ethical and Political Unity: True liberalism combines personal, political, and economic liberty, opposing all forms of tyranny, racism, voter suppression, and unnecessary taxes.
- Society of Free Adults: The goal is a society of free adults cooperating voluntarily, not one ruled by coercion or privilege.
What does "Leave Me Alone and I’ll Make You Rich" say about the roles of education and science in economic growth?
- Education’s Mixed Impact: While education is important, university subsidies often benefit the upper middle class, and overeducation or miseducation can be counterproductive.
- Science Follows Growth: Many key innovations came from practical tinkering and trial and error, with high science often developing in response to economic advances rather than driving them.
- Technical Elite’s Origin: The rise of skilled mechanics and engineers was crucial, but depended on social and ethical changes that allowed ordinary people to pursue technical careers.
- Limits of STEM Focus: The book critiques the modern emphasis on STEM fields alone, noting that humanities and ethics remain vital for a flourishing society.
How does "Leave Me Alone and I’ll Make You Rich" by Deirdre Nansen McCloskey use Adam Smith’s philosophy to support its arguments?
- Humanomics Over Selfishness: Smith’s "Theory of Moral Sentiments" emphasizes virtues and social accountability, countering the caricature of him as a proponent of "greed is good."
- Invisible Hand Clarified: Smith argued that individuals pursuing their own interest, within ethical bounds, often promote societal good, but not through ruthless competition alone.
- Local Knowledge and Prudence: Smith highlighted the importance of individuals’ local knowledge and prudence in economic decisions, opposing top-down planning.
- Ethics and Dignity: Smith’s liberalism is a theory of adulthood and dignity, where free individuals interact ethically, forming the foundation of the Bourgeois Deal.
What are the best quotes from "Leave Me Alone and I’ll Make You Rich" by Deirdre Nansen McCloskey and what do they mean?
- "Leave me alone and I’ll make you rich." This encapsulates the Bourgeois Deal: when people are free from coercion and allowed to innovate, society as a whole becomes wealthier.
- "It was not capital accumulation, nor institutions, nor imperialism, nor science alone, but a change in ideas that made us rich." This quote highlights the book’s central thesis that cultural and
Leave Me Alone and I'll Make You Rich receives mixed reviews, with ratings ranging from 1 to 5 stars. Supporters praise its defense of liberalism and capitalism, viewing it as a concise summary of McCloskey's larger works. They appreciate the argument that freedom and innovation led to global enrichment. Critics find it overly optimistic and dismissive of inequality and government's role. Some readers appreciate its accessible style, while others see it as propaganda. Overall, reviewers acknowledge its thought-provoking nature, even if they disagree with its conclusions.
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