The Industrial Revolution

What is it? Major change in the way goods are produced in the late 18th century through the 19th century. Machine production replaces hand production.

Origins Where does it begin? Why does it begin in Britain? Great Britain Why does it begin in Britain? Natural resources (including large labor supply) Colonies Economic prosperity Capital (Investment) Entrepreneurs (willing to take risks – profit motive) Stable Government Strong Navy Protect trade

Impact of Agricultural Revolution Helps spur Industrial Revolution (actually works both ways) Ind. Rev also helps Ag. Rev by providing new machinery to help grow crops more efficiently How does Ag. Rev lead to Ind. Rev? New farming methods (Crop Rotation) = increased population (labor source) Enclosure movement forced small farmers out Where do they go? -Urban centers (cities) where factories (large buildings where goods are manufactured – mass produced) are located -Leads to Urbanization -People migrating to city areas in mass numbers

Short Term Effects of Urbanization and Industrialization Some cities become overcrowded, unsanitary, and dangerous places to live (especially early on) Cholera epidemics widespread Life expectancy could sometimes be low (esp. early in Industrial Revolution) Working conditions could sometimes be difficult for factory workers **However, life expectancy and standard of living generally increase overall in industrialized nations Middle class grows and prospers Tension develops between labor and management Human nature???

Short Term Effects Cont. Industrialism spreads to nations and areas with the same favorable conditions as Britain (U.S.) War of 1812 (blockade) = greater economic independence in U.S. New Business Techniques Corporations A business owned by stockholders who share in the profits but are not responsible for company’s debt. (Helps fund larger operations - expansion)

Long Term Effects Reform Rise of the labor movement (Unions) Workers unite to help solve problems associated with early industrialism (poor working conditions, blacklists, etc...) Abolition of slavery Slavery not compatible with industrialism Industrial nations among the first to outlaw slavery Women’s rights Ex ... Suffrage movements? Right to vote Education (Accessible for more people) Need for educated work force (problem solving skills)

Long Term Effects Cont. Imperialism New Economic Theories Seizure of a country or territory by a stronger country in order to secure resources Industrialized nations (Britain, France, U.S. and later Japan, Germany, Russia, and others) establish colonial empires New Economic Theories Laissez-Faire (Capitalism), Socialism, Communism, etc...

Laissez-Faire Capitalism Economic system based on private ownership of property Government stays out of the business sector “let do” Adam Smith Wealth of Nations “Invisible Hand” competition/self-interest will guide resources most productive use.

Socialism Redistribution of wealth by government; government owns or controls the means of production Still some private ownership of small businesses by individuals on a limited basis Supposed to answers “evils” of capitalism

Marxism (Communism) Final stage of socialism; (Socialism on steroids!!!) elimination of social classes; replace competition with cooperation (Utopia?) Karl Marx and Friedrich Engels History advances through conflict Economics were the major force of change “Class struggle” Proletariat (Workers) v. Bourgeoisie (Middle Class)

Modern Terms Market Economy (Free-Market) Command Economy Ruled by supply and demand; individuals own property and make decisions that drive the economy Command Economy Government makes most or all of the economic decisions (Socialism, Communism) Mixed Economy Contains elements of both market and command.

Examples (No need to write these) Jeans produced because people buy them. Jeans are produced because the government decides to produce them to meet the needs and wants of citizens. An individual owns a grocery store; she decides what to stock in the store and pays her workers the lowest wages for which they will work. An individual manages a grocery store for the government; government decides what items will be stocked and sets the wage rate for workers. An individual owns a grocery store; he decides what to stock in the store and pays his workers a minimum wage set by the government.

Questions What are the disadvantages to an individual in each of the three systems? Which one do you think connects best with the Enlightenment? Why?