The Industrial Revolution

1750-19001750-19001750-19001750-1900

Originally created by Ms. Susan M. Pojer Horace Greeley HS Chappaqua, NY

MercantilismMercantilismMercantilismMercantilism

Characteristics of MercantilismCharacteristics of Mercantilism1.1. ““Bullionism”Bullionism” the economic health of a nation the economic health of a nation

could be measured by the amount of precious could be measured by the amount of precious metal [gold or silver] which it possessed.metal [gold or silver] which it possessed.

– ‘‘Hard’ money was the source of prosperity, prestige, Hard’ money was the source of prosperity, prestige, and strength for a nation.and strength for a nation.

– Bullionism dictated a Bullionism dictated a “favorable balance of trade.”“favorable balance of trade.” • Export more than you import [a trade surplus].Export more than you import [a trade surplus].

High tariffs on imported manufactured good.High tariffs on imported manufactured good. Low tariffs on imported raw materials.Low tariffs on imported raw materials.

2.2. Each nation must try to achieve economic Each nation must try to achieve economic self-sufficiency.self-sufficiency.

– Those founding new industries should be rewarded by Those founding new industries should be rewarded by the state.the state.

Characteristics of MercantilismCharacteristics of Mercantilism

3.3. Thriving agriculture should be carefully Thriving agriculture should be carefully encouraged.encouraged.

– Less of need to import foods.Less of need to import foods.– Prosperous farmers could provide a base for Prosperous farmers could provide a base for

taxation.taxation.

4.4. Sea power was necessary to control Sea power was necessary to control foreign markets.foreign markets.

– Less need to use the ships of other nations Less need to use the ships of other nations to carry your trade goods.to carry your trade goods.

– Your own fleet adds to the power and Your own fleet adds to the power and prestige of the nation.prestige of the nation.

5.5. Impose internal taxes of all kinds.Impose internal taxes of all kinds.

Characteristics of MercantilismCharacteristics of Mercantilism6.6. Colonies would provide captive Colonies would provide captive

markets for manufactured goods & markets for manufactured goods & sources of raw materials.sources of raw materials.

7.7. Trade is a Trade is a “zero-sum” game.“zero-sum” game.– A nation can gain in international trade A nation can gain in international trade

only at the expense of other nations.only at the expense of other nations.

Manufactured goods

Raw materials

Mother

Country

Mother

Country

Colony

Colony

Cheap labor

Characteristics of MercantilismCharacteristics of Mercantilism

8.8. A large population was needed to provide a A large population was needed to provide a domestic labor force to people the colonies.domestic labor force to people the colonies.

9.9. Luxury items should be avoided*Luxury items should be avoided*– They took money out of the economy They took money out of the economy

unnecessarily.unnecessarily.

10.10. State action was needed to regulate and State action was needed to regulate and enforce all of these economic policies.enforce all of these economic policies.

– State-sponsored trade monopolies.State-sponsored trade monopolies.

Jean Baptiste Colbert [(1619-1683)Jean Baptiste Colbert [(1619-1683)

• Architect of French Architect of French mercantilism or mercantilism or “Colbertism.”“Colbertism.”

• He was a bullionist.He was a bullionist.• There are four professions There are four professions

of importance to the of importance to the nation:nation:

– AgricultureAgriculture– TradeTrade– ArmyArmy– NavyNavy

• Uniform weights & Uniform weights & measures.measures.

• Opposed tolls on internal Opposed tolls on internal trade.trade.

Jean Baptiste ColbertJean Baptiste Colbert• Supported mandatory labor on national Supported mandatory labor on national

roads.roads.• Favored a large population.Favored a large population.

– Father of 10 or more children would be exempt Father of 10 or more children would be exempt from taxes.from taxes.

• Favored low wages and child labor.Favored low wages and child labor.

Colbert & Louis XIVColbert & Louis XIV

Who Benefited Most From Who Benefited Most From Mercantilism?Mercantilism?

• Monarchs.Monarchs.

• Merchant capitalists.Merchant capitalists.

• Joint-stock companies.Joint-stock companies.

• Government officials.Government officials.

TheThePhysiocratsPhysiocrats

(The “Government of Nature”)(The “Government of Nature”)

TheThePhysiocratsPhysiocrats

(The “Government of Nature”)(The “Government of Nature”)

Francois Quesnay (1694-1774)Francois Quesnay (1694-1774)

• A surgeon who turned to A surgeon who turned to medicine because of medicine because of failing eyesight.failing eyesight.

• He began publishing He began publishing economics treatises at economics treatises at the age of 62.the age of 62.

• No single document or No single document or book summarizes his book summarizes his economic system.economic system.

• He was concerned about He was concerned about the state of the French the state of the French economy, especially of economy, especially of French agriculture.French agriculture.

Quesnay’s Economic TheoriesQuesnay’s Economic Theories• Tableau ÉconomiqueTableau Économique

[1759].[1759].– A reaction against the A reaction against the

extreme mercantilist extreme mercantilist policies of Colbert.policies of Colbert.

• Three economic classes:Three economic classes:1.1. ““Proprietary class” Proprietary class”

landowners.landowners.

2.2. ““Productive class” Productive class” agricultural laborers.agricultural laborers.

3.3. ““Sterile class” Sterile class” artisans artisans & merchants.& merchants.

• Productive work was the Productive work was the source of national source of national wealth.wealth.

Quesnay’s Economic TheoriesQuesnay’s Economic Theories• Therefore, the wealth of the nation was derived Therefore, the wealth of the nation was derived

from agriculture.from agriculture.– Agriculture was the productive sector of an economy.Agriculture was the productive sector of an economy.

• Tax only the landowning class.Tax only the landowning class.

CapitalismCapitalismCapitalismCapitalism

Adam Smith Adam Smith (1723-1790)(1723-1790)• Appointed to the chair of Appointed to the chair of

logic in 1751 at the logic in 1751 at the University of Glasgow, University of Glasgow, Scotland.Scotland.

• In 1752 he transferred to In 1752 he transferred to the chair of philosophy.the chair of philosophy.

• On his travels to France, he On his travels to France, he was influenced by the was influenced by the writings of the physiocrats.writings of the physiocrats.

• 1776 1776 The Theory of The Theory of Moral Sentiments and an Moral Sentiments and an Inquiry Into the Nature of Inquiry Into the Nature of Causes of the Wealth of Causes of the Wealth of Nations Nations was published.was published.

– A vehement attack of the A vehement attack of the mercantilist system.mercantilist system.

The Wealth of Nations The Wealth of Nations (1776)(1776)

Adam Smith’s Attack on MercantilismAdam Smith’s Attack on Mercantilism

• He was making a political argument, NOT an He was making a political argument, NOT an economic one.economic one.

– Part of the argument was for new economic policy, but..Part of the argument was for new economic policy, but..– An essential part of the argument was for new social and An essential part of the argument was for new social and

political arrangements.political arrangements.

• He argued that the basic unit for social analysis should be He argued that the basic unit for social analysis should be the the nation, not the statenation, not the state..

• He was against the belief that trade was a zero-sum gameHe was against the belief that trade was a zero-sum game– It was a positive-sum game.It was a positive-sum game.– Both nations gained.Both nations gained.

Basic Capitalist PrinciplesBasic Capitalist Principles

1.1. Goods and services are produced for profitable Goods and services are produced for profitable exchange.exchange.

2.2. Human labor power is a commodity for Human labor power is a commodity for sale sale LABOR IS THE SOURCE OF VALUE. LABOR IS THE SOURCE OF VALUE.

BusinessesBusinesses HouseholdsHouseholds

Goods & Service

Goods & Service

Labor & Investments

Labor & Investments

Consumer SpendingConsumer Spending

WagesWages

3.3. The The “Invisible Hand”“Invisible Hand” of the market of the market– ProblemProblem How do we survive in a world where How do we survive in a world where

we must depend on many others, but where we must depend on many others, but where humans are by nature self-interested humans are by nature self-interested individuals??individuals??

– SolutionSolution the free market, while appearing the free market, while appearing chaotic and unrestrained, is actually guided to chaotic and unrestrained, is actually guided to produce the right amount and variety of goods by a produce the right amount and variety of goods by a so-called so-called “invisible hand.”“invisible hand.”

– Therefore, the basicTherefore, the basicmarket mechanism is market mechanism is self-regulating!self-regulating!

Basic Capitalist PrinciplesBasic Capitalist PrinciplesBasic Capitalist PrinciplesBasic Capitalist Principles

4.4. Individuals seeking success are Individuals seeking success are driven by self-interest driven by self-interest Profit MotiveProfit Motive

5.5. The The Law of Supply and DemandLaw of Supply and Demand– Individuals who are free to pursue their Individuals who are free to pursue their

self-interest will produce goods and self-interest will produce goods and services that others want, at prices others services that others want, at prices others will be will be willing to willing to pay.pay.



6.6. Law of CompetitionLaw of Competition– The competitive market system compels producers The competitive market system compels producers

to be increasingly efficient, and to respond to the to be increasingly efficient, and to respond to the desires of consumers.desires of consumers.

7.7. A social division of labor will maximize the A social division of labor will maximize the satisfaction of individual wants and needs, given satisfaction of individual wants and needs, given scarce resources.scarce resources.

8.8. Government should interfere minimally with the Government should interfere minimally with the free and efficient workings of the marketfree and efficient workings of the market

– Laissez faireLaissez faire [“Leave things alone.”] [“Leave things alone.”]

There, there it is again—the invisible hand of the

marketplace giving us the finger.

Agrarian Life to UrbanizationAgrarian Life to Urbanization

From the field to the factoryFrom the field to the factory

Late 18c: French Economic Advantages

Late 18c: French Economic Advantages

V Napoleonic Code.Napoleonic Code.V French communal law.French communal law.

) Free contractsFree contracts) Open marketsOpen markets) Uniform & clear commercial Uniform & clear commercial

regulationsregulationsV Standards weights & measures.Standards weights & measures.V Established technical schools.Established technical schools.V The government encouraged & The government encouraged &

honored inventors & inventions.honored inventors & inventions.V Bank of France Bank of France European European

modelmodelproviding a reliable currency.providing a reliable currency.

French Economic Disadvantages

French Economic Disadvantages

V Years of warYears of war) Supported the AmericanSupported the American

Revolution.Revolution.) French Revolution.French Revolution.) Early 19c Early 19c Napoleonic Wars Napoleonic Wars

V Heavy debts.Heavy debts.V High unemployment High unemployment soldiers soldiers

returning from the battlefronts.returning from the battlefronts.V French businessmen were afraid French businessmen were afraid

to take risks.to take risks.

Why England?Why England?

• Natural Resources especially coal and Natural Resources especially coal and iron oreiron ore

• Scientific education and applied Scientific education and applied mechanics; schools more scientific mechanics; schools more scientific orientedoriented

• Smaller towns near rivers and waterSmaller towns near rivers and water

That Nation of Shopkeepers!That Nation of Shopkeepers! -- Napoleon Bonaparte -- Napoleon Bonaparte

The Enclosure MovementThe Enclosure Movement

Enclosure MovementEnclosure Movement• Arable farming in open field systems was endedArable farming in open field systems was ended

– a piece of land owned by one person, but over which other a piece of land owned by one person, but over which other people could exercise certain traditional rights, such as allowing people could exercise certain traditional rights, such as allowing their livestock to graze upon it), were fenced (enclosed) and their livestock to graze upon it), were fenced (enclosed) and deeded or entitled to one or more private owners, who would deeded or entitled to one or more private owners, who would then enjoy the possession and fruits of the land to the exclusion then enjoy the possession and fruits of the land to the exclusion of all others.of all others.

• The process of enclosure was sometimes accompanied by The process of enclosure was sometimes accompanied by force, resistance, and bloodshed and remains among the force, resistance, and bloodshed and remains among the most controversial areas of agricultural and economic history most controversial areas of agricultural and economic history in England and elsewhere. Land reform… in England and elsewhere. Land reform…

• This created a landless working class that provided the labor This created a landless working class that provided the labor required in the new industries developingrequired in the new industries developing– For example: "In agriculture the years between 1760 and 1820 For example: "In agriculture the years between 1760 and 1820

are the years of wholesale enclosure in which, in village after are the years of wholesale enclosure in which, in village after village, common rights are lostvillage, common rights are lost

• ““Class robbery”Class robbery”

“Enclosed” Lands Today

“Enclosed” Lands Today

Other factorsOther factors

• English artisans and merchants English artisans and merchants begins a middling class or “middle begins a middling class or “middle class”class”

• Type of foods and crop rotation Type of foods and crop rotation technology embracedtechnology embraced

• Shopping Theory- as more people Shopping Theory- as more people have wealth, more demand for have wealth, more demand for goodsgoods

Metals, Woolens, & CanalsMetals, Woolens, & Canals

Early CanalsEarly Canals

Britain’s earliest Britain’s earliest Transportation Transportation InfrastructureInfrastructure

Mine & Forge [1840-1880]Mine & Forge [1840-1880]

ù More powerful than water is coal.More powerful than water is coal.

ù More powerful than wood is iron.More powerful than wood is iron.

ù Innovations make steel feasible.Innovations make steel feasible. ““Puddling” [1820] – “pig iron.”Puddling” [1820] – “pig iron.” ““Hot blast” [1829] – cheaper, purer Hot blast” [1829] – cheaper, purer

steel.steel. Bessemer process [1856] – strong, Bessemer process [1856] – strong,

flexible steel.flexible steel.

Coalfields & Industrial AreasCoalfields & Industrial Areas

18001800 1 ton of coal 50, 000 miners

18501850 30 tons 200, 000 miners

18801880300 million tons

500, 000 miners

19141914250 million tons

1, 200, 000 miners

Coal Mining in Britain:

1800-1914

Coal Mining in Britain:

1800-1914

Young Coal MinersYoung Coal Miners

Child Labor in the Mines

Child Labor in the Mines

Child Child “hurriers”“hurriers”

British Pig Iron ProductionBritish Pig Iron Production

Richard Arkwright:“Pioneer of the Factory

System”

Richard Arkwright:“Pioneer of the Factory

System”

The “Water Frame”The “Water Frame”

Factory ProductionFactory Production) Concentrates production in oneConcentrates production in one

place [materials, labor].place [materials, labor].

) Located near sources of power Located near sources of power [rather than labor or markets].[rather than labor or markets].

) Requires a lot of capital Requires a lot of capital investmentinvestment[factory, machines, etc.] more[factory, machines, etc.] morethan skilled labor.than skilled labor.

) Only 10% of English industry in Only 10% of English industry in 1850.1850.

Textile FactoryWorkers in England


18131813 2400 looms 150, 000 workers

18331833 85, 000 looms 200, 000 workers

18501850 224, 000 looms >1 million workers

The Factory SystemThe Factory System

Rigid schedule.Rigid schedule.

12-14 hour day.12-14 hour day.

Dangerous conditions.Dangerous conditions.

Mind-numbing monotony.Mind-numbing monotony.

British Coin Portraying a Factory, 1812

British Coin Portraying a Factory, 1812

Young “Bobbin-Doffers”

Young “Bobbin-Doffers”

Jacquard’s LoomJacquard’s Loom

John Kay’s “Flying Shuttle”

John Kay’s “Flying Shuttle”

The Power LoomThe Power Loom

James Watt’s Steam Engine

James Watt’s Steam Engine

Steam TractorSteam Tractor

Steam ShipSteam Ship

An Early Steam LocomotiveAn Early Steam Locomotive

Later LocomotivesLater Locomotives

The Impact of the Railroad

The Impact of the Railroad

“The Great Land Serpent”

“The Great Land Serpent”

Crystal Palace Exhibition: 1851Crystal Palace Exhibition: 1851

Exhibitions of the new industrial Exhibitions of the new industrial utopia.utopia.

Crystal Palace: Interior ExhibitsCrystal Palace: Interior Exhibits

Crystal Palace:British Ingenuity on

Display

Crystal Palace:British Ingenuity on

Display

Crystal Palace:American Pavilion

Crystal Palace:American Pavilion

19c Bourgeoisie: The Industrial Nouveau

Riche

19c Bourgeoisie: The Industrial Nouveau

Riche

Criticism of the New Bourgeoisie

Criticism of the New Bourgeoisie

Stereotype of the Factory OwnerStereotype of the Factory Owner

“Upstairs”/“Downstairs” Life“Upstairs”/“Downstairs” Life

Factory Wages in Lancashire, 1830

Factory Wages in Lancashire, 1830

Age of WorkerAge of Worker Male WagesMale Wages Female WagesFemale Wages

under 11under 11 2s 3d.2s 3d. 2s. 4d.2s. 4d.

11 - 1611 - 16 4s. 1d.4s. 1d. 4s. 3d.4s. 3d.

17 - 2117 - 21 10s. 2d.10s. 2d. 7s. 3d.7s. 3d.

22 - 2622 - 26 17s. 2d. 17s. 2d. 8s. 5d.8s. 5d.

27 - 3127 - 31 20s. 4d. 20s. 4d. 8s. 7d.8s. 7d.

32 - 3632 - 36 22s. 8d.22s. 8d. 8s. 9d.8s. 9d.

37 - 4137 - 41 21s. 7d.21s. 7d. 9s. 8d.9s. 8d.

42 - 4642 - 46 20s. 3d.20s. 3d. 9s. 3d.9s. 3d.

47 - 5147 - 51 16s. 7d.16s. 7d. 8s. 10d.8s. 10d.

52 - 5652 - 56 16s. 4d.16s. 4d. 8s. 4d.8s. 4d.

57 - 6157 - 61 13s. 6d.13s. 6d. 6s. 4d.6s. 4d.

Industrial Staffordshire

Industrial Staffordshire

Problems of PollutionProblems of Pollution

The Silent HighwaymanThe Silent Highwayman - 1858 - 1858

The New Industrial City

The New Industrial City

Early-19c Londonby Gustave Dore

Early-19c Londonby Gustave Dore

Worker Housing in Manchester

Worker Housing in Manchester

Factory Workers at Home

Factory Workers at Home

Workers Housing in Newcastle TodayWorkers Housing in Newcastle Today

The Life of the New Urban Poor: A Dickensian

Nightmare!

The Life of the New Urban Poor: A Dickensian

Nightmare!

Private Charities: Soup KitchensPrivate Charities: Soup Kitchens

Private Charities: The “Lady Bountifuls”Private Charities:

The “Lady Bountifuls”

The Luddites: 1811-1816

The Luddites: 1811-1816

Ned LuddNed Ludd [a mythical figure supposed to live [a mythical figure supposed to live in Sherwood Forest]in Sherwood Forest]

Attacks on the “frames” [power looms].Attacks on the “frames” [power looms].

The Luddite TriangleThe Luddite Triangle

The LudditesThe Luddites

BritishBritishSoldiers Soldiers Fire on Fire on BritishBritish

Workers:Workers:

Let us die Let us die like men, like men,

and not be and not be sold like sold like slaves!slaves!

Peterloo Massacre, 1819

Peterloo Massacre, 1819

The ChartistsThe Chartists

KeyKey

ChartistChartistsettlementssettlements

Centres of Centres of ChartismChartism

Area of plug Area of plug riots, 1842riots, 1842

The “Peoples’ Charter”

The “Peoples’ Charter”V Drafted in 1838 by Drafted in 1838 by William LovettWilliam Lovett..

V Radical campaign for Radical campaign for Parliamentary reform of the Parliamentary reform of the inequalities created by the Reform inequalities created by the Reform Bill of 1832.Bill of 1832. Votes for all men.Votes for all men.

Equal electoral districts.Equal electoral districts. Abolition of the requirement that Abolition of the requirement that

Members of Parliament [MPs] be Members of Parliament [MPs] be property owners.property owners.

Payment for Members of Payment for Members of Parliament.Parliament.

Annual general elections.Annual general elections. The secret ballot. The secret ballot.

The ChartistsThe Chartists

A physical force—A physical force—Chartists arming for Chartists arming for the fight.the fight.

A female ChartistA female Chartist

Anti-Corn Law League, 1845Anti-Corn Law League, 1845

4 Give manufactures more outlets for Give manufactures more outlets for their products.their products.

4 Expand employment.Expand employment.4 Lower the price of bread.Lower the price of bread.4 Make British agriculture more Make British agriculture more

efficient and productive.efficient and productive.4 Expose trade and agriculture to Expose trade and agriculture to

foreign competition.foreign competition.4 Promote international peace through Promote international peace through

trade contact.trade contact.

Thomas MalthusThomas Malthus

Population growth willPopulation growth willoutpace the food outpace the food supply.supply.

War, disease, or famineWar, disease, or faminecould control could control population.population.

The poor should have The poor should have less children.less children.

Food supply will then Food supply will then keep up with keep up with population.population.

David RicardoDavid Ricardo

““Iron Law of Wages.”Iron Law of Wages.”

When wages are high,When wages are high,workers have moreworkers have morechildren.children.

More children create aMore children create alarge labor surplus thatlarge labor surplus thatdepresses wages.depresses wages.

The Utilitarians:Jeremy Bentham & John

Stuart Mill

The Utilitarians:Jeremy Bentham & John

Stuart Mill The goal of society is The goal of society is the greatest good for the greatest good for the greatest number.the greatest number.

There is a role to play for government There is a role to play for government intervention to provide some social safetyintervention to provide some social safetynet.net.

Jeremy BenthamJeremy Bentham

The Socialists: Utopians & Marxists The Socialists: Utopians & Marxists

People as a society would operate and own People as a society would operate and own thethemeans of production, not individuals.means of production, not individuals.

Their goal was a society that benefited Their goal was a society that benefited everyone, not just a rich, well-connected few.everyone, not just a rich, well-connected few.

Tried to build perfect communities [Tried to build perfect communities [utopiasutopias].].

Government Response

Government Responsek Abolition of slavery in the Abolition of slavery in the

coloniescoloniesin 1832 [to raise wages in in 1832 [to raise wages in Britain].Britain].

k Sadler CommissionSadler Commission to look intoto look intoworking conditionsworking conditions

Factory ActFactory Act [1833] – child labor.[1833] – child labor.

k New Poor LawNew Poor Law [1834] – indoor [1834] – indoor relief.relief.

Poor houses.Poor houses.

k Reform BillReform Bill [1832] – broadens [1832] – broadens thethevote for the cities.vote for the cities.

British Reform Bill of 1832

British Reform Bill of 1832

British Reform BillsBritish Reform Bills

By 1850: Zones of Industrialization

on the European Continent

By 1850: Zones of Industrialization

on the European Continent

ù Northeast France.Northeast France.ù Belgium.Belgium.ù The Netherlands.The Netherlands.ù Western German states.Western German states.ù Northern ItalyNorthern Italyù East Germany East Germany Saxony Saxony

Industrialization By 1850

Industrialization By 1850

Railroads on the Continent

Railroads on the Continent

Share in World Manufacturing

Output: 1750-1900

Share in World Manufacturing

Output: 1750-1900

The Politics of IndustrializationThe Politics of Industrializationù State ownership of some industries.State ownership of some industries.) RRs RRs Belgium & most of Germany. Belgium & most of Germany.

ù Tariffs Tariffs British Corn Laws. British Corn Laws.ù National Banks granted a monopoly National Banks granted a monopoly

on on issuing bank notes.issuing bank notes.) Bank of England.Bank of England.) Bank of France.Bank of France.

ù Companies required to register with Companies required to register with the government & publish annual the government & publish annual budgets.budgets.

ù New legislation to:New legislation to:) Establish limited liability.Establish limited liability.) Create rules for the formation of Create rules for the formation of

corporations.corporations.ù Postal system.Postal system.ù Free trade zones Free trade zones Ger. Ger. ZollvereinZollverein

Why didn’t India, China, or Why didn’t India, China, or Japan flourish and Japan flourish and

industrialize?industrialize?

Why not there?Why not there?

• Many Asian societies did not develop a Many Asian societies did not develop a merchant class or a consumer classmerchant class or a consumer class

• Agrarian and land reforms to increase Agrarian and land reforms to increase populations and encourage innovationspopulations and encourage innovations

• Labor was manual in nature and change Labor was manual in nature and change to machine oriented takes timeto machine oriented takes time

• Import and export markets- Demand Import and export markets- Demand EconomyEconomy

ConclusionsConclusions

• Technological, socio-economic, and cultural Technological, socio-economic, and cultural changeschanges

• Women’s and children’s roles change in Women’s and children’s roles change in different waysdifferent ways

• Bringing “progress” to mankindBringing “progress” to mankind• Slaves of the land now slaves to the Slaves of the land now slaves to the

machine?machine?• Agrarian society to urban societyAgrarian society to urban society• Pro’s and con’sPro’s and con’s

1750-19141750-19141750-19141750-1914

The Industrial Revolution

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Transcript of The Industrial Revolution