Johan Norberg’s History of the World in 7 Golden Ages , and a Clarion Call for Today

The views presented here do not necessarily represent those of Advisor Perspectives.

What can investors learn from ancient history?

How about Muslim history, or the Song Dynasty of China (960 AD-1279 AD), or the Italian Renaissance and the Dutch Republic?

Johan Norberg

In his new book, “Peak Human,”1 Johan Norberg, “a superstar of the global freedom movement2 and author of the bestselling books “Progress” and “The Capitalist Manifesto” (both reviewed by me in Advisor Perspectives),3 encourages us to learn about past golden ages and what made them golden. By understanding these culturally and economically special times in human history, and their rise and decline, we can shape our own future in better ways. And, because we have technologies (most notably modern medicine) they did not have, we can live even more productive and enjoyable lives than our successful forbears did.

That happy outcome assumes we don’t destroy our own culture. We could, and in a change of mood from his previous work, the relentlessly optimistic Norberg sees the warning lights flashing. He wrote “Peak Human” partly in hope of preventing such destruction.

After reviewing in some detail the most notable golden ages of ancient, medieval, and early modern times, Norberg homes in on our own golden age — that of the Anglosphere over the last two centuries. Fully one-third of the book is on that topic.

A flourishing society and economy are a sine qua non for successful investing. If we identify the best and worst features of “peak human” societies, emulate the best, and avoid the worst, we can increase our chances of continuing to enjoy the high long-term investment returns that have characterized Western civilization over the last 200 years. In Norberg’s estimation, the best feature of all these cultures was openness to new ideas and foreign peoples. The worst is slavery, which the Anglosphere began to eradicate in the early 1800s, and which now is viewed with revulsion almost everywhere.

If we do the opposite, we might end up in the same place as Umayyad Caliphate and the Song Dynasty — a curiosity for historians to study. I don’t think we will fail in that way, because instant and near-universal communication make the benefits of our modern civilization obvious to anyone who is paying attention. The recipe for modernity, consisting of liberal capitalism, property rights, the rule of law, and democracy — plus Norberg’s secret sauce, openness to outside influences — can also easily be observed and copied. Yet, sadly, each of these ingredients is fiercely opposed by some. We should not think our civilization is immune to the ills that befell those of our predecessors.