by ALEKSANDER ZOTIN and MAKSIM KVASHA
When there’s too much wealth inequality, there’s no strong middle class to drive economic growth. Dividing inheritances among more people would help. And that’s where harems come in.
The older brother got the mill, the middle brother got the donkey and the youngest got nothing but a cat. That’s the beginning of the story Puss In Boots, and an informative read for future economic historians because this sort of right-of-inheritance is good for economic growth.
Monogamy was something that was already taken for granted in this 17th century European fairy tale because the Catholic Church imposed it on Europe by the 12th century. But the most famous piece of literature from the Arab world, One Thousand And One Nights, is also a useful read from an economic point of view.
In the Middle Ages, business in the Middle East was far more developed and sophisticated than in Europe, with trade routes spanning thousands of kilometers and bazaars filled with exotic goods. But modern economics was born in Europe. Why?
According to the American economist Timur Kuran, one of the most important reasons was polygamy and the inheritance system. Islamic merchants ran successful businesses, but any company they started would generally die with them, because it would be cut into so many pieces, divided among wives and children. The death of one partner in a caravan business usually meant company collapse, unless the remaining partner managed to make a deal with a whole crowd of heirs.
In Europe, monogamy dictated another route. European merchants had fewer children — at least legitimate ones. And so the concentration of capital didn’t decrease over the generations because a single heir would get everything.
That system is less fair than in Islamic law, where all of the heirs are treated equally. But European monogamy and inheritance law created the conditions that allowed major corporations to grow and thrive. Capital could outlive the company owners.
Of course, the Church also has fought against what sociologists call serial monogamy. Though it was an argument based on moral and religious considerations, it was also selfish. Fewer heirs among the aristocracy meant more members of the elite bequeathing money to the Church.
Kommersannt/World Crunch for more