Grifman,
I can't justify public sewers and aqueducts as leading to squalor, it just doesn't fit. They allow for greater population by reducing squalor (ability to provide potable water and remove waste.) Having to pay to enlarge them as the city grows would be quite reasonable, but it is not an option. Filth is in the definition of squalor. Taken to the extreme, the given interpretation suggests large cities of today should be mostly squalor since they have public sewers, water, and massive populations.
While I see your point and others I don't agree with the farm efficiency argument because I reject some of the current notions of increased efficiency. (There was a good article I read recently illustrating that much of the recent "boom" in efficiency is actually the shift to off the books/contract labor. They had revised figures that paint a much more normal picture of productivity growth.) Productive farms don't cause squalor, but non-productive ones do. Famines and food shortages produce squalor. Strong farming just adds another industry and uses more of your available resources. Good harvests require labor, storage, transport and trade (more employment throughout the chain.) Bad harvests do not need any of it. Smaller farms of the period on average would have higher squalor. Quite a number of the freemen on small farms would not be better off from a *squalor* standpoint than the slaves of a successful big farm. (Note, I'm not talking at all about non-squalor horrors of being a slave.) Remember, at this time good farming meant producing more not just from a given plot of land, but also making more land arable.
Anyway, it is an interesting topic to think about. A lot of it is "chicken-or-the-egg?" Is the improved farm and farm efficiency producing squalor or reducing it? We can make valid arguments both ways. Perhaps CA will tell us the philosophy.
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