1. The Industrial Revolution

2. Prior to Industrialization 10% people lived in cities Cottage Industries Man-powered machines Life dependant upon agricultural seasons Low production = low consumption= low earnings

3. Causes of the Industrial Revolution Agricultural Production Growing Population Increased Demand

4. Causes of the Industrial Revolution Mother Necessity Stability – Economic – Political – Social

5. 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

6. Agricultural Revolution 17 th Century New Farming Technology –Threshing Machine: mechanical separation of grain from stalk –Seed Drill: uniform seeding

7. 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

8. 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

9. 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

10. The Factory System Textile Industry Consolidated production Power-driven machinery –Spinning Jenny –Water Frame –Spinning Mule –Flying Shuttle

11. The Steam Engine Mother Necessity! Thomas Newcomen, 1692 James Watt, 1763 –Increased efficiency –More applicable and economical

12. 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!

13. Transportation Revolution Mother Necessity High cost of moving materials and finished products Increased distance between production and markets Land –Advantages –Disadvantages Water –Advantages –Disadvantage

14. 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

15. Waterways Preferred medium for heavy bulky loads Widen and deepen streams Canal Boom Limitations

16. Steam-Powered Water Transport 1807, Robert Fulton’s “Clermont.” Revolutionized water transport Mid-1800’s Transatlantic transport Time is Money!

17. 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”

18. 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.

19. 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

20. 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!)

21. Obstacles to Industrialization on the Continent French Revolution & Napoleonic Wars Disunity Tradition Geography

22. Labor Conditions dangerous & hazardous working conditions Long hours/low pay Pay not equal for equal work Few Options

23. 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

24. The New Industrial Class Structure The New Working ClassThe New Middle Class

25. The New Industrial Class Structure Upper Class Upper Middle Class Lower Middle Class Working Class Impoverished Class

26. Lower and Middle Class Housing Tenements Middle Class Housing

27. Travel

28. New Economic Theories

29. 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

30. David Ricardo 1772–1823 The “Iron Law of Wages” Low wages keep workers trapped No solutions to breaking cycle of poverty

31. Adam Smith 1723–1790 Father of Capitalism The Wealth of Nations Self-Interest Laissez-Faire

32. 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

33. Capitalism Theory v Reality Human Nature –Selfish –Impatient Problems?

34. 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

35. Revolution of the Proletariat Inevitable Workers react to abuses/exploitation of a mature capitalist state Means of ensuring a happy harmonious society

36. 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

37. Communism Theory vs Reality? Human Nature –Selfish –Impatient Problems?

38. Positive Immediate Effects Increase in Factories Transportation Mother Necessity Changes in daily life Rise of urban class Prosperous middle class

39. Negative Immediate Effects Exploitation Conditions Women & Children Pollution Overcrowded Uneducated WC

40. Long-term Effects Labor Unions Affordable products Industry & commerce Competition Education

41. Long-term Effects Conditions for WC WC in politics Women’s movement Government involvement Middle Class dominate Mass media

42. Long-term Effects Entertainment Urban Centers – Economic – Political – Social Cultural

43. The Gilded Age On the Surface –All that is good Underneath the Surface –Nasty side-effects