1. Spread of Industrialization
Britain – produced one half of the world’s coal and manufactured goods
Cotton industry alone in 1850 was equal in size to the industries of all other European countries combined

2. Steam Engine James Watt, Scottish Engineer
Made changes that enabled the steam engine to drive machinery
Did not need to be located near rivers, Cotton cloth Britain’s most valuable product

3. Food Supply More farmland Good weather Better transportation
New crops - Potato

4. Natural Resources
Many rivers for transporting raw materials and finished products
Abundant supply of coal and iron ore

5. Factors of Production LAND - LABOR - CAPITAL
Food People Capital Markets

6. Labor Population grows
Enclosure movement – large landowners could fence off common lands
Peasants are forced to move to towns and work in factories

7. Capital
Wealthy British entrepreneurs sought new business opportunities
Capital – to invest in new industrial machines and factories

8. Cotton Production! Two steps
Spinners made cotton thread from raw cotton
Weavers wove the thread into cloth on looms
*Cottage industry – usually done in people’s homes

9. Spinning Jenny 1768, James Hargreaves invents Spinning Jenny
Spinning process becomes much faster
Thread produced faster than weavers could use it

10. Flying Shuttle Makes weaving faster
Could produce cloth at a faster rate
However, needed a way to produce more thread from spinners

11. Europe Spreads to Belgium, France, German States
Governments encourage development
Funds for roads, canals, railroads

12. Railroads 1804, first steam powered locomotive ran in Britain (5 mph!)
THE ROCKET! – 1830 – 32 miles from Liverpool to Manchester (20 mph!)
Within 20 years able to reach 50 mph
1850 – 6,000 miles of railroad track

13. Europe: Social Impact Pop Growth – 1750 – 140 million
Decline in death rates, wars and diseases
Increase in food supply, people resistant to disease

14. Cities Britain, 1800 Pop of 1 million 1850, 2,363,000
Over half the population lived in towns and cities
*led to awful living conditions

15. Railroads

16. What do they have to do with stocks?
Look at page
Define corporation
What do they have to do with stocks?

17. Laissez-faire Adam Smith Capitalism

18. Socialism Karl Marx communism

19. Capitalism
Ownership of the means of production (capital) by private investors
Laissez-faire – gov’t shouldn’t be involved in the economy
Individual worker is more important - Competition
Adam Smith

20. Socialism the state owns the means of production (capital)
Gov’t should be in total control & make sure wealth is distributed evenly
Society as a whole is more important - cooperation
Friedrich Engels & Karl Marx

21. Karl Marx Effect Marx writes The Communist Manifesto – 1848
“World History is a history of class struggles.”
Believes the proletariat (working class) is divided against the bourgeoisie (middle class)
After a proletariat victory, a dictator (single ruler with absolute power) will take control.
Theory of socialism – theory in which society, in the form of government, owns the means of production (government owns factories, mills, etc.) One form is known as Communism
1875 – Germany – German Social Democratic Party begins to take hold of German parliament.

22. Karl Marx Socialist Parties and Trade Unions emerged in 1870
Theory on which they were based developed in 1848 by Karl Marx as written in…
The Communist Manifesto

23. Karl Marx Two classes: Bourgeoisie & Proletariat
Bourgeoisie – middle class, including merchants, industrialists, professional people ARE THE OPPRESSORS
Oppressors – owned (land, raw materials, money, factories, etc.) means of production
controlled government and society

24. Karl Marx Proletariat – the working class, WERE THE OPPRESSED
Oppressed – depended on the owners of the means of production (people who worked for the oppressors)
* Bourgeoisie and Proletariat ‘stood in constant opposition to one another’

25. Karl Marx
Struggle would result in a violent overthrow of the bourgeoisie by the proletariat
Economic differences would wither away
Classless society would develop, State withers away

26. Karl Marx Appalled at the horrible conditions in factories
According to Marx, Capitalism was the problem
“All of world history is a history of ‘class struggle’”
Karl Marx & Friedrich Engels

27. Trade Unions in Great Britain
1870s – win the right to strike
Leads to higher wages (more pay), better conditions, and collective bargaining (negotiations between union workers and employers)

28. Trade Unions Some Marxists just wanted reform
Labor Unions used strikes (work stoppage) to raise wages, better working conditions, gain the right to collective bargaining
Negotiations between union workers and employers