THE INDUSTRIAL REVOLUTION

 While the American and French Revolutions encouraged political change, an economic revolution was also occurring  The effects of the Industrial Revolution were just as far-reaching  It brought about fundamental changes in the way goods are made  It introduced mass production, the factory system, steam power, and linked science to the development of technology INTRODUCTION

 How does the free enterprise system work?  What factors caused the Industrial Revolution?  How did the Industrial Revolution change the ways people lived? THE BIG QUESTIONS

 Economics – how people meet their needs by making, distributing, and using goods and services.  The three economic questions –  What should be produced  How should it be produced?  Who should get it?  Three ways to answer these questions –  Traditional economy  Ruler or government decides  Free Enterprise (economic freedom) ECONOMIC FACTORS

FREE ENTERPRISE SYSTEM  The economic freedom to make own choices (what to buy, where to work, what to make)  The right to own property, invest in business, to make a profit  Consumers have choices  Government interference is limited  Supply and Demand (how much is available and how much consumers are willing to buy)

THE INTERACTION OF SUPPLY AND DEMAND Low Demand / Large Supply High Demand / Short Supply PRICES

THE RISE OF INDUSTRY  Began in Great Britain in the 1700s  Britain had all the factors necessary for production  Geography  Colonial possessions  Political stability  Global trade  Prosperous agriculture  Thriving middle class

INNOVATIONS IN TEXTILE MANUFACTURING  Advances in science helped inventors take a practical approach to problems  New inventions  The Spinning Jenny (1764) used a single wheel to control several spindles at a time. Increased thread production  The Steam Engine (1769) improved by James Watt and made steam power available for mechanical purposes (moved factories away from rivers and streams)

SHIFTING TO THE FACTORY SYSTEM  Prior to Industrialization, craftsmen worked at home (spinning and weaving wool, cotton, and linen by hand) – The Domestic System  Factories replaced this system  Machines driven by water or steam power  Many workers could be supervised and could work at once  Rate of production increased  Prices dropped and demand increased

WHY ENGLAND?  Large supplies of raw materials (from colonies)  Plentiful supplies of coal and water  Engineers and craftsmen were skilled at making machinery  As demand grew for less costly British textiles, more and more factories were built, employing greater numbers of workers

SOCIAL CHANGES  Working conditions  Factory owners grew richer and more powerful  Conditions of the working class worsened (unsafe, long hours, low pay, women and children exploited)  Urbanization  Fewer farm workers were needed  Large numbers of people moved to cities (one of the larges population shifts in history)  Cities were crowded and unsanitary  Pollution increased

CONTINUED…  Growth of capitalism (another name for free enterprise)  Men, women, and children all worked in factories  Moved from villages to towns and lived in more crowded apartments  Disease spread

CHARACTERISTICS OF 19 TH -CENTURY CAPITALISM Role of the Entrepreneur: The means of production (factories) were owned by people known as entrepreneurs organize, manage, and assume responsibility for a business in hopes of making a profit. Role of the Workers: Former farm workers left their homes in the countryside for jobs in more populated and industrialized areas. These workers provided their labor, for which they received wages. Role of the Government: Nineteenth-century governments followed a policy of laissez-faire. This meant that the government did not interfere in relations between workers and business owners.

CHANGES IN TRANSPORTATION TECHNOLOGY  Steam engines were applied to boats (early 1800s)  Powered locomotives, thus creating railroads (1820s)  Increased need for coal, iron, and steel  Greatly stimulated the growth of heavy industry

THE SECOND INDUSTRIAL REVOLUTION  Brought on by the constant stream of innovation  Introduction of electricity brought improvements to  Chemical industry  Petroleum industry  Steel industry  Combustible engines - automobiles  Inventors  Thomas Edison – phonograph, motion pictures, light bulb (1870s)  Alexander Graham Bell – telephone (1876)  Marie Curie – studied radioactivity and won a Nobel Prize for discovering radium