What were the causes and effects of the Industrial Revolution What were the causes and effects of the Industrial Revolution? Notes #19

Before nations could industrialize, they first had to develop adequate food supplies (to feed growing populations). Agrarian Revolution

The Industrial Revolution began in Britain due to its ample supply of human resources (workers) . . .

. . . and natural resources (coal, iron ore, and rivers).

The process of industrialization in Britain was also aided by its use of water power from rivers . . . Water-wheel

. . . and availability of investment capital.

All of these factors combined caused factories to form and a mass production of goods to occur in Britain (and later in other nations).

As a result of the Industrial Revolution, the mass production of goods made the prices of goods cheaper and easier to purchase.

As more goods were sold, businesses grew and business owners sold shares of their companies to stockholders. Stock certificate

New Social Class Structure With more money being earned, the middle class increased in number and in power. New Social Class Structure Upper Class: Very rich business and industrial families. Upper Middle Class: Business people and professionals, such as doctors, lawyers, etc. Lower Middle Class: Other professionals, such as office workers, shop owners, teachers, etc. Working Class: Factory workers and small farmers.

In order to be closer to available factory jobs, more workers moved to urban areas.

In response to unsafe working conditions in factories, workers formed labor unions to help bring about labor reforms.

James Watt’s steam engine Improvements in energy sources and transportation were developed, such as the steam engine and locomotive. James Watt’s steam engine

Overall, a general rise in the standard of living occurred in Europe.

The Industrial Revolution resulted in the development of two significant economic theories:

1. Laissez-faire capitalism: written about by Adam Smith in The Wealth of Nations, which argued that governments should not interfere with business, creating a market economy.

2. Communism: written about by Karl Marx and Friedrich Engels in The Communist Manifesto, which argued that all the evils of industrial society would disappear if . . . Karl Marx Friedrich Engels

. . . the proletariat (workers) united to overthrow the capitalist (privileged) class and private property no longer existed.