was available only in the cities, whose local merchants and bureaucratic functionaries had some sense of social mobility. Economy Economically, Portugal was no better off in the post-war era, it continued to derive its (diminishing) wealth from cultivation of the land, taxes and land rents, while neglecting development of a financial structure to make available the capital necessary for entrepreneurs to acquire machinery and sustain industry; consequently, the economy stagnated. As late as 1910, only 1/5 of the workers in industries classified as "manufacturing" were employed in factories with more than 10 workers. The environment of small shops and handicraft operations was not conducive to labour unions. Politicians sponsored many small newspapers, which provided an outlet for numerous writers to debate economic questions and promote their particular reforms. Known as the "Generation of the 70s" the writers focused on political economy, and how the traditional economy could be stimulated to progress and growth. Important writers included Antero de Quental, who wrote abstract philosophical essays; Joaquim P. Oliveira Martins (1845–94), who focused on financial topics; José Maria Eça de Queiroz (1845-1900), who employed realism and irony in his fiction to make points in political economy; and Rafael Bordalo Pinheiro with his biting caricatures of pompous politicians. Writers often considered the dilemmas caused by economic growth and material progress in France and Britain. Socialism appealed only to Quental, who was a founder of the Partido Socialista Português (Portuguese Socialist Party). They did concern themselves with the political consequences of rich powerbrokers, the threat of depopulation in rural areas, the worsening of urban poverty. They dealt with issues of social injustice, worker unrest, and the proper role of the state in promoting the public welfare. Today, the decline of the Portuguese economy towards the end of the 19th century is still traceable via anthropometric indicators, i.e. height. To this day, the Portuguese are the shortest Europeans. This divergence first became apparent during the 1840s and increased significantly during the 1870s. Two significant causes for this development can be identified. Firstly, Portugal's real wage evolution was slow as a result of comparatively late industrialization and slow economic growth performance. Secondly, scant investments into education led to delayed human capital formation (in comparison with other European countries). The thus arising Portuguese welfare deficit can be associated with the stagnating heights of the Portuguese. Innovation The constitutional monarchy was marked by a series of legislative proposals