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 17 th Century Systematic application of new techniques –Enclosures, late 17 th 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 17 th 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 Production 1.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 19 th 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 Smith 1723–1790 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

Capitalism Theory 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

Communism Theory 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