1. AP World History POD #19 – Revolutions in Europe Impact of the Industrial Revolution

2. Class Discussion Questions McKay – “Industrialization in Continental Europe”, pp. 734-741 McKay – “Capital and Labor”, pp. 740-749

3. What socio-economic philosophy was advocated by Thomas Malthus?  Essay on the Principle of Population (1798)  Argued that population tended to grow faster than food supply and thus would be periodically checked by events such as war, famine, and disease  Urged “prudential restraint” in population- he felt people should marry later in life as a counter to this

4. What is David Ricardo’s “Iron Law of Wages”?  “Iron Law of Wages”  Felt the pressure of population growth would always set wages at subsistence level or a rate just high enough to keep workers from starving

5. How did England attempt to protect and take advantage of the benefits of Industrial Revolution?  the technology and business practices of Great Britain were adapted slowly in continental Europe as a result of the process was slow with uneven spirits and differences in national and regional variations  By 1913 Germany was rapidly closing in on Britain, while the United States passed the first industrial nation in per capita production  Balance of power of the world had changed dramatically by the eve of World War One

6. How did industrialization spread in Europe?  built upon the tradition of the putting out system  inventions were not needed but technology could be “borrowed”  strong national governments could create economic policy and restrictions etc. to foster industrial growth

7. What problems were associated with Continental industrialization economy?  French Revolution had disrupted continental trade and stability and ushered in a period of inflation and social anxiety  Revolution in France cut off Britain from the continent (Napoleon’s Continental System) preventing British machinery and technology from entering the continent  Cheap British good dominated the world marketplace  Few people in continental Europe understood the new complex British machinery  There was a lack of investment capital  Shortage of laborers to work in factories or at least willing to do so

8. How were the problems associated with continental industrialization overcome?  Britain attempted to keep their secrets to themselves, thus it was illegal for skilled mechanics to leave the country until 1825 and machinery was not exported until 1843  Many of these people and machines were able to illegally escape  Entrepreneurs were now willing to take a risk to build a large fortune- limited liability corporations or risk pools were developed to make this process more appealing  Tariff protection was enacted by government  Governments began to assume the cost of large infrastructure expenditures such as the construction of railroads  Banks began to rise in importance with limited stakeholder risk- they were much more willing to take a risk in hope of making a large profit

9. How did industrialization impact the entrepreneurial class?  most early industrialists drew upon their family and friends for capital and labor  many skilled workers were able to start their own factories and acquire significant wealth  as the system evolved these same workers could no longer afford the capital outlay to take the risk

10. How did industrialization impact the bourgeoisie?  long simmering issue between the factory owning bourgeoisie, middle class, and laboring proletariat began to emerge  this became the golden age of the middle class, as they acquired great wealth and social status  a class-consciousness began to emerge

11. How did industrialization impact the factory worker?  many argue that the fate of the factory worker was worse than that of past cottage and agricultural workers (Friedrich Engels)  relentless competition and technological advances hurt the laborer as factory owners tried to reduce labor force numbers and cost

12. How did industrialization impact women and children?  women found limited opportunities and were expected to concentrate on the home and family  the lack of early workers caused factory owners to employ orphaned children

13. What were working conditions in the factory?  most workers were used to their own work pace in the cottage system and disliked the factory system  early factories hired family units as a workforce  men emerged as the family’s wage earner

14. What was the goal and function of early unions?  evolved out of the guild model and looked to protect the rights and status of factory workers  governments outlawed these groups in the name of individual liberty