3. Cottage Industry “Putting Out” System Fun for the whole family!

4. Supervision Difficult to supervise rural workers “Holy Monday” SOLUTION: Factory Production

5. Britain c. 1760 Historians: Was there an Industrial “Revolution”? Beginnings

6. Lots of Rivers Cheap, easy transportation Water power Coal Iron Sheep (imported in 16 th century) Why Britain? Natural Advantages

7. National Bank Chartered 1694 No NB in France Source of capital Private Property Rights Aristocracy invested in commerce/industry Not so in France Canals Invention Why Britain? Human Advantages

8. Natural AdvantagesHuman Advantages RiversCanals Coal Free Market Economy IronCapital SheepNational Bank Private Property Rights Enclosures

9. Natural AdvantagesHuman Advantages

10. Water Frame Richard Arkwright - 1768 Held several hundred spindles and required water power to operate

11. Inventions Of the Industrial Revolution Inventions of the Industrial Revolution history ad spinning jenny (intro only) James Hargreaves 1764 Spinning Jenny Richard Arkwright 1768 Water Frame Samuel Crompton 1779 Spinning Mule

12. Mills The Water Frame could not be operated from home. Mills, housing thousands dozens of water frames, were built near rivers.

13. Water power is finite – only so many water frames could be built, and only by major rivers. Goods still produced on a small scale in the countryside. Water power is finite – only so many water frames could be built, and only by major rivers. Goods still produced on a small scale in the countryside. Water Power

14. The British had access to coal, which provided massive amounts of energy in comparison to water, but it was still finite. Coal “Those countries where coal-pits furnish a proper substance for fuel have this advantage over others, that not having the same occasion for forests, the lands may be cultivated.” -- Montesquieu The Spirit of the Laws, XXIII, 14.

15. Ned Ludd Mythical forest dweller Luddites smashed frames that made automated weaving possible. Modern Usage: Anti-technology Luddites Smashing is what Luddites do best!

16. Scottish universities emphasized science and the mechanical arts. Oxford and Cambridge emphasized theology and the humanities. Scottish universities emphasized science and the mechanical arts. Oxford and Cambridge emphasized theology and the humanities. University of Glasgow

18. Steam Engine 1705 First experimental steam engine invented 1769 James Watt (U. of Glasgow) made the existing steam engine (which was being used at Scottish universities for experiments) more efficient. 1770 s Steam engine becomes a major producer of power. A preserved Watt engine at Loughborough University Watt E=mc 2

19. The development of the steam engine allowed people to build factories anywhere. Many factories popped up in cities, such as Manchester and Liverpool. Cities

21. A Foreign Traveler’s Impression Alexis de Tocqueville Alexis de Tocqueville Journeys to England and Ireland Journeys to England and Ireland Visiting Manchester Visiting Manchester Visiting Manchester Visiting Manchester Alexis de Tocqueville Alexis de Tocqueville Journeys to England and Ireland Journeys to England and Ireland Visiting Manchester Visiting Manchester Visiting Manchester Visiting Manchester

22. 1825 – Liverpool to Manchester Railway 1830 – The Rocket clocked a record 16 MPH. Railroads Transportation of goods was still a problem until railroads were developed.

23. A Revolution in Transportation 18 th century – Rousseau walked from Geneva, Switzerland, to Paris (257 Miles) Not unusual at that time! Railroads

24. Goods can now be produced and transported in mass quantities. Railroads

26. Thomas Malthus, Essay on the Principle of Population (1798) Food supply growth is arithmetic, but population growth is geometric. The Malthusian Dilemma Malthus

27. D. Ricardo, Iron Law of Wages Higher wages will only result in population growth. Therefore, workers should only be paid subsistence wages. Population Growth

28. “Dismal Science” Malthus and Ricardo cause others, such as Thomas Carlyle, to refer to economics as the “dismal science.” Their theories were correct in the short run, but wrong in the long run. Production Possibilities Curve (Next Slide)

29. Production Possibilities Curve A good explanation of the PPC can be found here. here New technology can make production (including food) more efficient. http://www.pcecon.com/notes/prodposs.html

30. Standard of Living Depends on Time Period 1820’s, 1830’s, 1850’s… Momentary shock, but conditions improved