1. The Industrial Revolution

2. 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.

3. 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

4. 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

5. 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???

6. 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)

7. 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)

8. 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...

9. 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.

10. 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

11. 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)

12. 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.

13. 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.

14. 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?