Brown, Paxton and Wise: How Rich Were They? - Professor Sir Roderick Floud FBA

TL;DR

Historical figures' wealth, when adjusted for inflation and economic growth, reveals significant fortunes that are far greater than what would be expected based on their original salaries.

Transcript

how rich were they in terms that we can understand today there are several ways of answering that question and some produce odd results for example a recent and otherwise excellent biography I think of brown calculates that his salary at stowe of 25 pounds in 1750 equates to 7041 a tree in the equates to two thousand 129 pounds per annum today that... Read More

Key Insights

• 🫰 Converting historical salaries based on the retail price index doesn't accurately represent the wealth of historical figures over longer periods.
• 🫰 When using an index of gross domestic product per capita, it becomes evident that the wealth of historical figures like Henry Wise, Lancelot Brown, and Paxton was far greater than initially estimated.
• 🍉 The fortunes of these individuals, when adjusted for inflation and economic growth, are in millions or even billions of pounds in today's terms.
• 🤯 The salary of the head gardener at Stowe in the 18th century was surprisingly low, considering the significance of the garden.
• 🙈 The success of Lancelot Brown can be seen in his sizable contracts and accumulated wealth, making his estimated 20 million pounds in today's terms plausible.
• 💱 The wealth of historical figures can be better understood by accounting for both price changes and economic growth.
• ❓ The significant financial success of Henry Wise and Paxton challenges the notion that their earnings were modest.

Questions & Answers

Q: Why is converting historical salaries using the retail price index misleading over longer periods?

The retail price index doesn't consider economic growth and increasing complexity, resulting in misleading comparisons. It may be accurate for short-term comparisons or one's own lifetime, but not for longer periods.

Q: How wealthy was Henry Wise in today's terms?

Henry Wise, despite being paid 25 pounds as the head gardener in 1750, can plausibly be equated to leaving 32 million pounds today when considering his purchases, wealth accumulation, and the growth of the economy.

Q: What was Lancelot Brown's salary and overall financial success?

Lancelot Brown likely earned around 60,000 pounds as the head gardener of a prestigious garden. Additionally, his contracts over 22 years amounted to nearly three-quarters of a billion pounds. His total wealth, including estates and bequests, is estimated at around 20 million pounds.

Q: How financially successful was Paxton?

Paxton enjoyed a significant salary when he went to Chatsworth and received substantial bequests at death. While specific figures are not mentioned in the content, he is described as equally successful financially.

Summary & Key Takeaways

• A biography calculates that the head gardener of a famous garden in the 18th century was paid a salary that is well below today's minimum wage.

• Converting historical salaries using the retail price index is misleading over longer periods as it doesn't account for economic growth and complexity.

• Using an index of gross domestic product per capita, it becomes apparent that historical figures like Henry Wise, Lancelot Brown, and Paxton were extremely wealthy, with fortunes equivalent to millions or billions of pounds in today's terms.