The Industrial Revolution

Prior to Industrialization

• 10% people lived in cities• Cottage Industries• Man-powered machines• Life dependant upon agricultural

seasons• Low production = low consumption=

low earnings

Causes of the Industrial Revolution

•Agricultural Production• Growing Population• Increased Demand

Causes of the Industrial Revolution

• Mother Necessity

• Stability

– Economic– Political– Social

Agricultural Revolution 17th Century

• Systematic application of new techniques– Enclosures, late 17th century: organize and keep track

of crops, land, and animals; more efficient– Selective Breeding: best animals = best breeds = best

quality– Four Field System: crop rotation

Agricultural Revolution 17th Century

• New Farming Technology– Threshing Machine: mechanical

separation of grain from stalk – Seed Drill: uniform seeding

Results of Agricultural Revolution

• Subsistence to Commercial Farming

• Increased Food Supply = Decrease Price

• More $ for stuff leads to demand for consumer goods

• Less labor needed on farms

• More labor available

Factors of Production1. Land

– Resources,Markets,Transportation Routes

– Access to iron, coal, water

2. Labor

– Work force to operate

– Skilled and unskilled

3. Capital

– Access to money for investment

– Fixed assets (machines, buildings, stuff to make/more stuff

Costs of Production

• Cost of bringing a product to market• What are the costs?• Market Price - Cost of Production =

Profit• Entrepreneur’s goal: keep low

The Factory System

• Textile Industry• Consolidated

production • Power-driven

machinery– Spinning Jenny– Water Frame– Spinning Mule– Flying Shuttle

The Steam Engine

• Mother Necessity!• Thomas Newcomen,

1692• James Watt, 1763

– Increased efficiency– More applicable and

economical

Coal-Iron-Steel

• Heart and Soul of Industrialization

• Fuel for power• Material for machines,

bridges, boats, trains,rails, steam engines, pipes…

• Henry Bessemer– Cheap steel!

Transportation Revolution

• Mother Necessity• High cost of moving materials and finished

products• Increased distance between production and

markets• Land

– Advantages– Disadvantages

• Water– Advantages– Disadvantage

Roads

• Early 19th Century very poor• Best roads = shortest routes• Animal Drawn wagons• Only “Light” Loads• Many Limitations• John McAdam

– Thin packed layers of crushed rock

Waterways

• Preferred medium for heavy bulky loads• Widen and deepen streams• Canal Boom • Limitations

Steam-Powered Water Transport

• 1807, Robert Fulton’s “Clermont.”• Revolutionized water transport• Mid-1800’s Transatlantic transport• Time is Money!

Steam Powered Train

• 1801, Richard Trevithick first attached a steam engine to a wagon.

• George Stephenson, “Rocket” the first practical steam locomotive

• How Fast? • Rocket Speed “24 MPH”

The Liverpool and Manchester Railway

• The first widely-used steam train was the Liverpool & Manchester Railway.

• Started a boom in railway building for the next 20 years.

• By 1854, moderately-sized town in England was connected by rail.

Britain Takes the Lead Great Britain’s advantages:

• Plentiful iron and coal• A navigable river system • Colonies that supplied

raw materials and bought finished goods

• A government that encouraged improvements in transportation and used its navy to protect British trade

• Freedom from destructive wars

Britain Takes the Lead

• A strong commercial infrastructure that provided merchants with capital to invest in new enterprises

• Stable wealthy class willing to invest

• Entrepreneurs willing to organize and manage businesses (take risks!)

Obstacles to Industrialization on the Continent

• French Revolution & Napoleonic Wars

• Disunity

• Tradition

• Geography

Labor Conditions

• dangerous & hazardous working conditions • Long hours/low pay• Pay not equal for equal work• Few Options

Child Labor: Movements to Regulate • “good for

economy”• “builds character”• Factory Act of

1833:– Number of hours– Who could work– Time for school– Textile Mills only

The New Industrial Class Structure

The New Working ClassThe New Middle Class

The New Industrial Class Structure

• Upper Class

• Upper Middle Class

• Lower Middle Class

• Working Class

• Impoverished Class

Lower and Middle Class Housing

Tenements

Middle Class Housing

Travel

New Economic Theories

Thomas Malthus 1766–1834

• An Essay on the Principle of Population (1798),

• food supply would not meet the needs of the growing population

• Demand for food will keep wages low

David Ricardo 1772–1823

• The “Iron Law of Wages”

• Low wages keep workers trapped

• No solutions to breaking cycle of poverty

Adam Smith1723–1790

• Father of Capitalism• The Wealth of Nations• Self-Interest• Laissez-Faire

Capitalism• An economic model that calls for control of the

economy by individual households and privately owned businesses. – Producers and Consumers– Self-interest– Free Market– Laws of Supply and Demand– Economic Questions

• Role of Government– Ensure Competition– Protect Property– National Security– Provided goods/services not provided in the Free Market

CapitalismTheory v Reality

• Human Nature– Selfish– Impatient

• Problems?

Karl Marx 1818–1883

• Influential economic and social thinker Communist Manifesto

• Das Kapital• Haves vs Have Nots

– Bourgeoisie vs Proletariat

• Class struggle• Public ownership of

means of production

Revolution of the Proletariat

• Inevitable

• Workers react to abuses/exploitation of a mature capitalist state

• Means of ensuring a happy harmonious society

Proletariat Revolution

1. Seize means of production

2. Collective ownership of property

3. Dictatorship of Proletariat

4. World Wide Workers Revolution

5. Establishment of a classless society– No need for government, military, police

CommunismTheory vs Reality?

• Human Nature– Selfish– Impatient

• Problems?

Positive Immediate Effects

• Increase in Factories• Transportation• Mother Necessity• Changes in daily life• Rise of urban class• Prosperous middle class

Negative Immediate Effects

• Exploitation• Conditions• Women & Children• Pollution• Overcrowded • Uneducated WC

Long-term Effects

• Labor Unions

• Affordable products

• Industry & commerce• Competition

• Education

Long-term Effects

• Conditions for WC

• WC in politics

• Women’s movement

• Government involvement

• Middle Class dominate

• Mass media

Long-term Effects

• Entertainment

• Urban Centers

– Economic

– Political

– Social•Cultural

The Gilded Age• On the Surface

– All that is good

• Underneath the Surface

– Nasty side-effects