History 155 American Business History Lecture 6 Overview of the Industrial Revolution Shelley Morrisette

Review of Prior Lectures and Readings:  Whaling Industry  Wealth of Nations  The Business of Slavery  American Mercantilism  Free Trade

Industrial Revolution Images

Objectives for the Lecture:  Why was the Industrial Revolution a Revolution?  It may appear as an evolution, but it impacts the population in an immediate and revolutionary manner!

Source: Brad DeLong

GDP/Per Capita by year YearGDP/Per Capita YearGDP/Per Capita Source: Brad DeLong

GDP Per/Capita Qatar$143,427 2.Luxembourg$92,049 3.Singapore $82,762 6.Norway$66, United States$54, China$12, India$5, Central African Republic $600 Source: WHO

How long does it take to earn an hour of light?  Today:½ second of work (new bulb)  1950:8 seconds of work (incandescent)  1880:15 minutes of work (kerosene lamp)  1800:6 hours of work (candle) Source: Matt Ridley

What was the Industrial Revolution?

When did it occur?

Industrial Revolution Timeline 1793: Cotton Gin 1763: Steam Engine 1837: Morse Code/Telegraph 1786: Steam Boat 1829: Typewriter 1845: Sewing Machine

What were the outcomes of the I.R.?

Answers  Huge migration of cities  Factory system launched  Mass production of goods  Industrial capitalism  Increased standard of living  Expansion of democracy  Power of ordinary people rises  Increased leisure time  Science and research stimulated  Foreign markets for goods

Why is it important?

Answers  Changed the world – forever!  Industrialization destroyed workers’ independence  Huge investments required to operate large businesses – modern capitalism  Overproduction  Monopoly power  Unemployment  Mass produced goods were cheaper  Increased standard of living

What was good about the I.R.?

Answers  Country and people became wealthier  Child mortality decreased  Literacy increased  Life expectancy increased  Overall health and wellbeing increased  Workers received more political power  Growing middle class

What was bad about the I.R.?

Answers  Until regulation and laws were enacted, businesses created many externalities that included:  Pollution  Child – labor  Work death/accidents  Monopoly profits  Political influence/corruption  Workers lost independence

When did it end?

Answers  There is no date certain. Many historians use different dates for different countries:  England (1760 – 1880)  USA (1800 – 1908)  Many other countries are industrializing now!  China  India  Vietnam

What does it all mean?

Answers  Industrialization is good and bad. With regulation the bad can be managed.  For industrialization to occur a power source is necessary  Energy and GDP are perfectly correlated  Energy must be – cheap, plentiful, reliable, dense, and scalable  All countries of the world want to industrialize because it means more “stuff” for their citizens  People want stuff – smartphones, jeans, cars, etc.

Next time  Impact of Industrial Revolution  Communication/Transportation/Production/War  Economics  Politics  Society/Culture/Quality of Life  Backlash of Industrial Revolution  Romanticism  Marxism/Socialism  Luddites

Questions?