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Debating the Causes of Hockey Stick Growth: Institutions vs. Culture

The emergence of capitalist institutions, which can foster prosperity through specialization and technological innovation, coincided with the start of the continuous technological revolution and the 'hockey stick' growth in living standards. However, this temporal correlation does not definitively prove that capitalism caused this economic takeoff. A major confounding factor is the Enlightenment, a significant cultural shift towards free-thinking that also emerged in the 17th century, around the same time. Consequently, economists and historians debate whether the primary driver of this sustained growth was the new economic institutions, the cultural shift, or a combination of these and other factors.

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Updated 2026-05-02

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