Journal #14 Why is the steam engine significant?

The Spread of Industrialization

But . . . Population growth Agricultural improvements Continental Europe during the 18th C. had developed similarly to Britain in these ways: Population growth Agricultural improvements Expanded industry Growth of foreign trade But . . .

Lack of good roads and problems with river transit Continental Europe lagged behind Britain in its move toward industrialism because: Lack of good roads and problems with river transit Toll stations and customs barriers increased the cost and price of goods Guild restrictions Different business mentality: Dislike of competition High regard for family security Unwillingness to take risks and thriftiness

AS well as . . . Upheaval associated with wars of the French Revolution and Napoleonic eras Continental system disrupted communication making it hard for the continent to keep up with new tech. Wars caused problems with trade and created political and social instability Because of these different circumstances, industrialization developed differently on the continent than in Britain.

Continental differences Continental countries borrowed techniques and practices from Britain Role of Government: Paid for tech. ed. programs Exempted foreign industrial equipment from import taxes Financed some factories Helped finance transportation improvements Set up tariffs on imported goods

Joint-stock investment banks Starting with less expensive machines, Britain had been able to industrialize largely through private capital Advanced industrial machines required larger amounts of capital. Joint-Stock Investment Banks: Accepted savings from many depositors— developed large capital resources—invested on a large scale in railroads, mining, and heavy industry