The Industrial Revolution Begins Take out your notebook/ paper. We’re taking notes today.

What is ‘the economy’? Economy - the way that people make and buy/obtain resources Examples – Agricultural economy (people primarily farm crops to sell) Manufacturing economy (people primarily make things in factories to sell)

Define: Industry What do you think industry is? What about industrialization? Industry - economic activity concerned with the processing of raw materials and manufacture of goods in factories Industrialization – the transition from a primarily agricultural economy to one of manufactured goods Agricultural – farming Manufactured – made in factories

Why do we call it a ‘Revolution’? It was a big CHANGE But first… what was it a change from? Let’s focus on one place, the first place to industrialize…. England.

Agricultural Revolution England, in the mid-1700’s has primarily an agricultural economy Wealth is driven by access to land and farming Some innovators come up with some new inventions that make farming more productive (make more food in less space, with fewer workers) Wealthy people buy up all the land and create mega-farms (this is called the enclosure movement) Spreading seeds takes a long time, Jethro Tull invents the seed drill, which is a machine that plants seeds faster, growing into more crops. Crop rotation – more crops! Selective breeding – better farm animals

Agricultural Revolution - Results More food, more people! Population rises. New machines save labor, fewer jobs in the countryside Higher demand for goods like clothing, things people have to make. At this point, most things are made by piecework in people’s houses. Companies hire people to make things in their homes. This is known as the cottage industry. Farmers begin to move to cities for work New inventions and machinery make factory production of goods easier. The migrated farmers begin to work in the factories – The Industrial Revolution has begun!

But, Why is England special? In particular, England had a lot of resources: Coal, water and iron Harbors and rivers Colonies overseas (additional natural resources) No wars on British soil Some other countries had some of these things, but none of them had all four Factors of Production Land Labor Wealth (Capital) Entrepreneurs

Factor 1 - LAND Land provides raw materials, water power, and a place to build factories and mega farms.

Factor 2 - Labor Labor = the people that do the work.

Factor 3 – Wealth/Capital The money necessary to provide wages for workers, materials, and machinery to run factories.

Factor 4 – Entrepreneur(s) The people that provide money (capital) to businesses who then use that money to buy materials, supplies, and equipment.

NOW LETS BUILD A FACTORY!