Posts tagged ‘Middle Ages’

The Effect of the Black Death on Labor and Grain Prices

Long time readers will know that if I were asked to relive my life doing something entirely different, I would like to try studying economic history.  Today, in a bit of a coincidence, my son called me with a question about the effect of the Black Death in Europe on labor and grain prices ... just days after I had been learning about the exact same part of history in Professor Daileader's awesome Teaching Company course on the Middle Ages (actually he has three courses - early, high, late - which are all excellent).

From the beginning of the 14th century, Europe suffered a series of demographic disasters.  Climate change in the form of the end of the Medieval warm period led to failed crops and several years of famine early in the century.  Then, later in the century, the Black Death came... over and over, perhaps made worse by the fact that Europeans were weakened already from famine.  As a result, the population of Europe dropped by something like half.

It is not entirely obvious to me what such a demographic disaster would do to prices.  Panic and uncertainty usually drive them up in the near term, but what about after that?  Both the supply and demand curves for most everything will be dropping in tandem.  So what happens to prices?

In the case of the 14th century, we know the answer:  the price of labor rose dramatically, while the price of grain dropped.  The combination tended to bankrupt the landholding aristocracy, who went so far as to try to reimpose serfdom to get their finances back in balance (some things never change).  The nobility pretty much failed at this in the West (England, France) and were met with a series of peasant revolts.  They generally succeeded in the East (Germany, Poland, Russia) which is why a quasi-feudal agricultural system persisted so long in those countries.

But why?  Why did grain price go down rather than up?  Why did labor go in the opposite direction?  I could look it up, but that is no fun.

A first answer, which does not satisfy

People who think of all of the middle ages as "the dark ages" miss the boom that occurred between 1000-1300.  Population increased, and technology advanced (just because this technology seems pedestrian to us, like the plow harness for horses or the stirrup, does not make it any less so).  It was the only time between about 300 and 1500 when the population was growing (a fact we climate skeptics will note coincided with the Medieval warm period).

But even without the setbacks of the 1300's, historians probably would argue that Europe was headed for a Malthusian collapse no matter what in the 14th century.   An enormous amount of forest had been cleared and new farmland created, such that by 1300 some pretty marginal land was being farmed just so Europe could barely keep up with demand.  At the margin, really low productivity land was being farmed.

So if there is a sudden 50% population cut, then that means that all that marginal farm land will be abandoned first.  While the number of farmers would be cut in half, production would be reduced by less than half because presumably the least productive farms would be abandoned first.  With demand cut by half and production cut by less than half, prices would fall for grain.

But this doesn't work for labor.  The same argument should apply.  To get everyone fed, we would actually need less than half the prior labor force because they would concentrate on the best land.  Labor prices should fall in this model as well, but in fact they went up.  A lot.  In fact, they went up not by a few percent but by multiples, enough to cause enormous social problems across Europe.

A second answer, that makes more sense

After thinking about this for a while, I came to realize that I had the wrong model for the economy in my head.  I was thinking about our modern economy.   If suddenly, say, online retailing reduces demand for physical stores dramatically, people close stores and redeploy capital and labor and assets to other investments in other industries.  That is how I was thinking about the Middle Ages.

But it may be more correct to see the Middle Ages as a one product economy.  There was agriculture, period.  Everything else was a rounding error.

So now let's think about the "farmers" in the Middle Ages.  They are primarily all the 1%, the titled nobility, who either farm big estates with peasant labor or lease large parts of their estates to peasants for farming.

OK, half the population is suddenly gone.  The Noble's family has lots of death but someone is still around to inherit.  They have a big estate where growing grain supports their lifestyle as well as any military obligations they may have to their lord (though this style of fighting with knights on horseback supported by grants of land is having its last hurrah in the 100 years war).

Then grain prices collapse.  That is a clear pricing signal.  In the modern economy, that would tell us to get out and find a new place for our capital.  So, as Lord Coyote of the Castle Aaaaargh, I am going to do what, exactly?  How can I redeploy my capital, when it is essentially illiquid?  I can't sell the family land.  And if I did, land prices, along with grain prices and the demographic collapse, are falling through the floor.  And even if I could sell for cash, what would I do for a living?  What would I reinvest the money in?  Running an estate is all I know.  It's all anyone knows.  I have to support myself and my 3 mistresses and my squires and my string of warhorses.

All I can do is try to farm the land I have always farmed.  And everyone else does the same.  The result is far more grain than anyone needs with the reduced population, so prices fall.   But I still need the same number of people to grow the food, irregardless of the price it fetches, but there are now half as many workers available so the price of labor goes through the roof.  When grain demand collapsed, there was no way to clear the excess capacity.  It turns out everyone had a nearly vertical supply curve, because irregardless of price, they had nothing else they could do with their time and money.  You can see now why they tried to solve their problem by reimposing serfdom (combined with price controls, a bad idea for Diocletian and for Nixon and everyone in between).

Of course, nothing is stuck forever.   One way capacity cleared was through the growth of the bureaucratic state over the next 2 centuries.  Nobles eventually had to find some new way to support themselves, and did so by taking jobs in growing state bureaucracies.  They became salaried ministers rather than feudal knights supported by agriculture.  At the same time, rising wealth among the 99% non-nobility allowed kings to support themselves through taxes rather than the granting of fiefs, which in turn paid for the nobility to take jobs in the bureaucracy and paid for peasant armies with guns and bows that replaced the lords fighting on horseback.  So in the long term, the price signal was inordinately powerful -- so powerful it helped reshape much of European government and society.

By the way, if you are reading this expecting some point about modern politics, sorry.  Just something I was thinking about and it helped to write it down.  Comments are appreciated.  I still have not cribbed the answer from the history texts yet.

Environmental Animism

This is from an environmental writer who criticises climate skeptics as being anti-science:

I can't be the only one who thinks about how strange cancer is: It seems sometimes like a giant "dislike" button the heavens push when humans engage in behaviors we weren't built for, even seemingly natural things like sun-bathing — until you remember that Northern Europeans didn't, evolutionarily speaking, have a lot of sun to deal with.

This notion that somehow cancer is a punishment from Gaia for our high-technology and lifestyle choices and eating habits actually seems pretty prevalent among environmentalists.

The author, in reporting on some really interesting research about cancer as an independent parasitic lifeform rather than a disease, makes this statement:

The new view depicts cancer as a new species — one for whom our unhealthy lifestyles are a growth market. Humanity's radical manipulations of nature can create just this sort of unexpected power vacuum.

The first nine words of this graf do accurately reflect the gist of the article he is linking.  The rest is pure fantasy and supposition, his own biases applied to his reporting.  He pretends it came from the study, but of course no such thing can be found in the source.  But we don't need any proof, because we know that cancer and parasites and all other unhealthy things only began with the incorporation of Dupont. Thank God the black death did not come along today, or I am sure it would be blamed on Exxon.

PS- by the way, interestingly enough, there is a school of thought that the black death was made far worse by climate change, in this case global cooling and the end of the Medieval warm period.  In the 1330's, the end of the warm period brought wet and cold weather which killed crops and caused great famines, which may have weakened the population for the black death a decade later.

It is really, really funny sitting in on a Medieval history course and having the professor have to say things like, "I know this is not what you hear in the news, but in the Middle Ages, warmth brought prosperity and cold brought death."

Teaching Company Sale

I have bought numerous audio and video Teaching Company courses and have never been disappointed.  Until tomorrow they are having a 70% off sale on many of their courses.

A few I have heard and would recommend:

History of the US

History of London

Big History

American Civil War

Chinese History

Modern Western Civ (I am doing this one now)

Early Middle Ages (one of three by same professor on the Middle Ages.  All three are awesome)  here is late Middle Ages

History of Ancient Rome (not rated as well on this site but this is probably my favorite)

World War I

World War II

I am kind of amazed how long the list is, but I have actually listened to several others I would not recommend or that are not on sale.

Update: Use coupon code VFRC to get an additional $20 if you spend over $50.  By the way, I don't get any commissions.  I just believe in the product.

Real Climate Change We Might Want to Worry About

The sun follows an (approximately) 11-year cycle as sunspots ebb and flow.  The peak of these cycles, ie the number of sunspots at the cycle's maximum, is thought to correlate with the strength of the sun's output.  In the past, periods with very low sunspot activity through an entire cycle have correlated with very cold temperatures (e.g. the Maunder Minimum and the Little Ice Age).

Well, NASA has updated its forecast for this cycle and it does not look good:

Current prediction for the next sunspot cycle maximum gives a smoothed sunspot number maximum of about 62 in July of 2013. We are currently over two years into Cycle 24. The predicted size would make this the smallest sunspot cycle in nearly 200 years.

The low cycle 200 years ago coincided with a decade or more of wicked-cold temperatures, particularly in Northern Europe  (think Napoleon's army freezing to death in 1812).

One of the reasons this probably has not gotten much coverage is that climate scientists have worked hard in the media to attribute the vast majority of past warming, particularly in the period 1978-1998, to ppm changes in CO2 concentration.  But this same 2-decade period saw extremely high solar activity (as measured by sunspots) and ocean cycles like the PDO in the warm phase.  To maximize how much past warming was attributed to CO2, warming alarmists had to take the fairly absurd position that these ocean cycles and changes in solar output had only trivial effects on temperatures (much more here).

Well, we may find out over the next few years just how trivial Mr. Sun is or is not to the climate.  And we may well find out something else many skeptics have said for years -- for activities like agriculture, cooling is way more damaging than warming.  In the Middle Ages, agriculture boomed from 1100-1300 even as temperatures rose higher than they are today (at least in Europe).  In the first decades of the 1300's, cooling led to agricultural failure and famine, famines that are often credited for weakening the population and thus increasing the mortality from the Black Death a few years later.

Justifying Genocide as Green

I kid you not

So how did Genghis Khan, one of history's cruelest conquerors, earn such a glowing environmental report card? The reality may be a bit difficult for today's environmentalists to stomach, but Khan did it the same way he built his empire — with a high body count.

Over the course of the century and a half run of the Mongol Empire, about 22 percent of the world's total land area had been conquered and an estimated 40 million people were slaughtered by the horse-driven, bow-wielding hordes. Depopulation over such a large swathe of land meant that countless numbers of cultivated fields eventually returned to forests.

In other words, one effect of Genghis Khan's unrelenting invasion was widespread reforestation, and the re-growth of those forests meant that more carbon could be absorbed from the atmosphere.

Weirdly, the author equates cooling the Earth with "a glowing environmental report card?"  How did cold become green?

In fact, the world did substantially cool in the 14th century.  The previous 300 warm years had brought prosperity and growth to Western Europe, in fact the first population growth in Europe since as early as 300AD.  The commercial and intellectual regression that is often called the Dark Ages or the early Middle Ages (say 700-1000AD) is often attributed to a demographic collapse in Western Europe.  There are many who credit, at least in part, this collapse for the fall of the Western Roman Empire.

The years 1000-1300 saw a real recovery, the first population growth for hundreds of years, and a number of important (though to us prosaic) technological, intellectual and societal advances. There are several factors behind this boom, but a large one is the Medieval Warm Period, where we can find records of certain crops (e.g. grapes in England) being grown far north of where they can be even today.

The early 1300's coincided with the return of cold, wet weather to Europe.  Whether this is in part attributable to Genghis Khan's killing rampage, I can't say.  But the effects were clear.  The 1320's and 1330's saw a series of terrible harvests and resulting famines.   By the 1340's, much of Europe was hungry and malnurished, weakening the population for the arrival of some rats carrying Bubonic Plague.  Again, not a few historians have noted that the climate-change-induced famines of the early 1300's likely made the early plagues more virulent.

This world of failed harvests, starving, and plagues -- this is a greener world we should aspire to?

(HT:  A reader)

Modern Witch Trials

Kevin Drum, while sympathetic (as we all are) to the plight of parents of kids with autism, is obviously frustrated that a few people with no science behind them are causing kids to go un-vaccinated.  Both he and Megan McArdle suggest some reasons for this.  I added this in the comment section:

It all strikes me as part of the general rebellion against reason we see today, alas.

Last week in my class on the late Middle Ages, we learned about the
early origins of witchcraft denunciations. Most denunciations were
initiated by someone who had undergone a tragedy that seemed
inexplicable -- e.g. the death of a loved one due to disease or a crop
failure or, most commonly, the death of a child. It seems to be part of
human nature to seek out something or someone to blame, and in this case
people latched onto the least sympathetic, most marginalized people
around them (often widowed women) and accused them of witchcraft as the
cause for their tragedy.

The parallels, to me, are striking. I think many of the witchcraft accusers had the same
motivation with the Thimerosal crowd, with only the target changing (now drug companies are the
unsympathetic ones). The only real difference is that we have in fact
added a positive feedback to this point of human nature, by creating a
tort system dominated by sympathy over reason, which tends to pay off
on such wild accusations of witchcraft. 

Breast implant makers?  Burn them!  Vaccine manufacturers?   Burn them!  Obstetricians?  Burn them!