British Industrial Revolution: Rise and Decline in the 19th Century
The British Primacy in the Industrial Revolution
Early Dominance and Global Impact
Britain was the first industrial country in the world, generating a quarter of the world’s production. With its global primacy, it also became the first industrial nation. In the 19th century, it maintained its industrial and commercial prowess. However, after 1870, it lost its primacy to other nations. The United States exceeded its total production, and Germany did the same in the first decade of the 20th century. On the eve of World War I, Britain was still a leading industrial nation but handled only one-sixth of the total trade, closely followed by Germany and the United States.
In Britain, agriculture was still the activity employing the most labor. The textile, coal, and engineering industries remained the mainstays of the economy, although the steel industry had a significant impact. Regarding the coal industry, Britain had a per capita income twice that of its main European rivals. The rapid industrialization of neighboring countries, poor in coal, increased exports of this resource.
Key Industries and Technological Advancements
As for the technology industry, its origins can be found in the three industries mentioned:
- The textile industry: Builders and repairers needed machines.
- The steel industry: Produced its own machinery.
- The coal industry: Required effective pumps and cheap transport, leading to the creation of the steam engine and railways.
Due to the development of railways, foreign demand for experts provided equipment and British capital, strongly stimulating the entire economy. Similarly, the development of the shipbuilding industry, which transitioned from sail to steam and from using wood to iron and later steel in the manufacture of its boats, was also a great encouragement.
Challenges and Relative Decline
Despite such remarkable achievements, England could not maintain its superiority indefinitely as less developed nations, but well-equipped with resources, such as the United States, began industrializing. Several explanations have been offered for this disappointing performance. Some are very technical and relate to commercial terms, investment patterns, and the difficulty of accessing raw materials and natural resources. In addition, iron ore was gradually depleted or could not compete with cheaper prices abroad.
Another possible cause of the relative decline is attributed to entrepreneurial factors. While Britain initially had victorious and aggressively dynamic entrepreneurs, the new generation did not exhibit the dynamism of their ancestors, preferring a lifestyle of affluent gentlemen and leaving daily operations in the hands of employees.
Signs of Stagnation
The late introduction of high technology was a sign of business lethargy. For example, the textile industry resisted the introduction of advanced spinning and weaving machines. Britain was the last of the industrial countries to adopt compulsory public elementary education. Among all the great nations, Britain was the one most dependent on both exports and imports for its material well-being. Therefore, it depended on the trade policies of other nations.
On the other hand, in the second half of the century, the central role of banks and insurance assumed an even greater contribution to income.
Conclusion: A Legacy of Progress
In conclusion, despite all this, in the 19th century, the real per capita income of the British increased, income distribution became more equal, extreme poverty decreased, and in 1914, the average Briton enjoyed the highest standard of living in Europe.