I believe this is in reference to the changes in European economies during/after the Black Death, where typical incomes rose significantly. However, my understanding is that this happened mainly because most capital was in the form of land, which of course was unaffected by the plague. Thus, the ratio of capital to labor went up and the value of labor increased. In the modern world where agriculture is a relatively small part of the economy, it’s not at all clear that a reduction in population density would cause individual incomes to increase.
I believe this is in reference to the changes in European economies during/after the Black Death, where typical incomes rose significantly. However, my understanding is that this happened mainly because most capital was in the form of land, which of course was unaffected by the plague. Thus, the ratio of capital to labor went up and the value of labor increased. In the modern world where agriculture is a relatively small part of the economy, it’s not at all clear that a reduction in population density would cause individual incomes to increase.
I see. Thanks!