Monopoly Inwards History

Timothy Taylor, the Conversable Economist, tracks downwards the oft-told even out of William Lee as well as his knitting machine.
...the 2019 World Development Report from the World Bank has a cite nigh the start of Chapter 1: "In 1589, Queen Elizabeth I of England was alarmed when clergyman William Lee applied for a majestic patent for a knitting machine: `Consider thou what the project design would practise to my pitiful subjects,' she pointed out. `It would assuredly select them to ruin past times depriving them of employment.'” 
It's genuinely a lovely story, presaging this fallacy passed downwards through the ages, to Milton Friedman's famous "let them occupation spoons" even out (on beingness told a Chinese dam was beingness made past times manus as well as shovel rather than bulldozers to furnish employment) to the electrical flow hullabaloo that AI volition induce got all the jobs. (And today. On a KQED (NPR) "forum," demo concluding week, on spell I was shaving, a caller expressed merely how peachy it is that United Mexican U.S. uses people non machines to sweep streets, thereby providing employment, as well as nosotros should practise the same. Fallacies alive a long time.)

Lovely every bit it is, Taylor is "inherently dubious nigh direct quotations from conversations held inwards 1589," took a  "journey through libraries as well as archives," to rail downwards the actual story.  It is an interesting banker's complaint on the really beginnings of the industrial revolution.

As I read Taylor, it seems the even out is genuinely pretty suspect.
"The underlying source seems to endure inwards an 1831 book, History of the Framework Knitters, written past times Gravenor Henson....Henson was an of import British merchandise wedlock leader inwards the early on 19th century. As Stanley D. Chapman notes inwards his "Introduction" nigh Henson's role inwards writing the book: "His principal theme was that hosiery, lace as well as all other industries should endure regulated past times the regime so every bit to hold a decent living touchstone for the workers as well as fair weather of trade. British industries must endure protected from direct unusual contest and, to a greater extent than particularly, from industrial espionage, migration of skilled workmen to other countries, as well as export of machinery."  
So, every bit I get together indirectly, the even out passed on from a source was definitely trying to brand a point, as well as (again reading solely Tim) has precious lilliputian primary testify for the famous conversation.

The firstly lesson: beware these apocryphal stories passed on through secondary, 3rd as well as ultimately gossipy sources.  

This lesson was brought habitation to me past times Peter Garber's peachy "Famous First Bubbles" book (I had a lot of fun reviewing it). Garber went dorsum to expect at actual primary sources behind stories that though apocryphal are passed around every bit truthful with economists, such every bit the famous tulip "bubble." They aren't truthful either. Though they brand proficient stories.

I got a deeper lesson, on merely how economies worked inwards early on modern Europe. Early economies were so pervasively regulated, that the solely thing to practise with an innovation was to run to larn a Royal monopoly. 

William Lee invented a stocking-making machine. (Apparently, to expose of occupation a adult woman who spurned his advances spell knitting stockings.) So, what does he practise with his newfound knowledge?
Having at nowadays discovered the method of knitting past times machinery, his adjacent endeavour was directed to obtain the golden harvest which had flattered his imagination. He removed his project design to London for the role presenting it to the Queen,...Lee at nowadays imagined himself for certain of a handsome remuneration,...[but]  she refused to brand either a grant of coin or secure him a monopoly or patent. 
Here is where the famous quote enters
Her reply is said to induce got been to the next purport: -- My Lord, I induce got also much dearest to my pitiful people, who obtain their staff of life past times the occupation of knitting, to give my coin to frontwards an project design which volition tend to their ruin, past times depriving them of employment, as well as therefore brand them beggars. 
It goes on, interestingly. The Queen was interested inwards cheaper silk stockings, which she wore:
Had Mr. Lee made a motorcar that would induce got made silk stockings, I should, I think, induce got been somewhat justified inwards granting him a patent for that monopoly, which would induce got affected solely a pocket-size issue of my subjects. but to savor the exclusive privilege of making stockings for the whole of my subjects is also of import to grant to whatever individual."
But it gets much to a greater extent than s economically interesting
Apparently Lee ran into a dissimilar problem: Queen Elizabeth has been granting lots of monopolies to courtroom favorites, as well as at that spot was a widespread feel that it had gotten out of hand. Thus, the granting of unwarranted monopolies became a argue to deny Lee a monopoly every bit well. Henson writes:
"The fourth dimension which Mr. Lee had chosen to brand an application to the government, though to his sanguine involve heed really propitious for remuneration. was inwards reality the reverse; the treasury of Elizabeth was extremely low, owing to the enormous expenses which she had incurred inwards preparations to take in the Castilian armada inwards the preceding year. Already had the Parliament begun to limited their decided umbrage at the grant of the privileges of patents for monopolies; which, every bit they were so conducted, were justly considered national evils, as well as the most odious agency of rewarding courtroom favorites, past times an excessively tyrannical manner of private taxation. Nearly all the nobles enjoyed a patent for the most useful as well as full general articles of consumption, such every bit iron, lead, saltpetre, salt, oil, glasses, &c. &c., to the amount of to a greater extent than than 1 hundred articles, which were sold, imported, or exported past times virtue of letters patent. These patent rights, were sold to persons who farmed the profits, as well as therefore demanded what prices they idea prudent for their commodities. [my emphasis] When the full general listing was read over inwards the House of Commons inwards 1601, a member, indignant at the the extortions, exclaimed, " Is staff of life with the number?" "Bread?" cried the house, with astonishment, "Yes I assure you," he sarcastically replied, "if nosotros larn on at this rate, nosotros shall induce got a monopoly of staff of life earlier adjacent Parliament." 
Actually, I believe they did. Most trades were restricted to social club members as well as you lot couldn't merely bake staff of life as well as sell it. (Historians, allow me know if I'm confusing house as well as fourth dimension here.)  "Patent" inwards 16th century England also seems to hateful to a greater extent than a full general monopoly correct than our electrical flow understanding, every bit inwards a "patent" to sell iron. Lee went on to the French court, to essay to larn a patent as well as monopoly at that spot too.

Lee never, apparently, made a package genuinely making stockings. He died unhappily inwards France, though his motorcar did larn adopted. Just how long it took a unproblematic stocking motorcar to endure adopted may enjoin us something interesting nigh why economical increment was so irksome to interruption out.

The interesting observation here: it's 1589, as well as you lot invent a cool novel machine, state for making stockings. What practise you lot practise with it? You as well as I mightiness answer, "start making stockings." You tin undersell the contest as well as brand a bundle. Or, nosotros mightiness answer, "start selling stocking-making machines." Sure, others volition follow, but you lot induce got a big first-mover advantage. Yes, if a modern patent organisation were upwards as well as running it mightiness endure useful to larn a patent as well as essay to irksome downwards competitors. But firstly as well as foremost, larn the job organisation going.

That Lee did non practise this -- that it seems non fifty-fifty to induce got occurred to him - is telling nigh merely how controlled as well as regulated economies plainly were at the time.

It brings to involve heed 2 other recent histories I read, Dava Sobel's Longitude and Charles Coulston Gillispies' mass on the  Montgolfier Brothers.

Longitude: In the 1700s, it was a major job to know how far E or westward a send was. After painstaking work, John Harrison came upwards with a solution: a clock that could enjoin fourth dimension accurately, fifty-fifty at sea. What did he practise with it? Start selling clocks to send captains, you lot mightiness say! And you lot would endure wrong. He spent his life trying to larn the prize established for that purpose, generally unsuccessfully.

Balloons: The Montgolfier Brothers invent the balloon. What practise they practise with it? Start selling balloons? Start selling balloon rides? No, instantly off to Paris to larn majestic dispensation.

I don't know plenty nigh these early on economies, but that running off to larn a Royal monopoly seems to endure the solely thing anyone fifty-fifty considers to practise with a novel project design seems interesting testify on merely how rigidly controlled economical affairs were.

Guilds, patents, monopolies, as well as the primary business office of economical rule beingness to practise rents inwards render for political support, seems a designing with deep roots.

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