Industrial Revolution and Socioeconomic Transformations
Rail and Steam Power
Rail
Used in mines to transport mineral wagons, the innovative rail system with steel wheels and tabs prevented derailment. Stephenson’s 1829 locomotive revolutionized transportation by using steam power. This innovation shortened journeys, increased travel safety, and made freight cheaper.
Steamboats
Iron steamboats replaced sailing vessels. The first steamboats began running in the U.S. around 1807, and by 1847, ships could cross the Atlantic Ocean.
Liberalism and Capitalism
Liberalism
In the 18th century, Adam Smith established key economic principles:
- Personal interest and research drive economic growth.
- Market mechanisms balance interests by adapting supply to demand through prices.
- Free trade and minimal government intervention are essential.
Capitalism
Industrial capitalism is a system where the means of production (factories, machinery, and resources) are privately owned by a small group (the bourgeoisie). Workers exchange their labor for wages. The lack of planning and constant production increases led to cyclical economic crises.
Expansion of Capitalism
By the early 19th century, industrialization spread to France and Belgium. Between 1850 and 1870, Russia, Germany, the U.S., and Japan also industrialized. Their model involved foreign technology and capital, a significant role for banks, and greater state intervention. Southern and Eastern Europe remained largely rural, with the latter not industrializing until the 20th century.
A New Industrial Organization
In the 19th century, industrial production shifted towards mass production to increase productivity, reduce manufacturing time, and lower costs. High capital investment led to industrial concentration and larger companies. Agreements to restrict competition, set prices, and establish areas of influence emerged. This led to cartels (agreements between companies), trusts (mergers of firms), holdings (financial groups controlling multiple companies and banks), and monopolies (exclusive rights to market a product).
The First Labor Associations
Workers initially opposed machines, protesting their displacement of labor (Luddism). During the 19th century, they developed class consciousness, recognizing their shared social problems and goals. This led to the creation of worker organizations:
- Mutual Aid Societies: Originating in Britain in the late 18th century, these were initially illegal but legalized in 1825.
- Trade Unions: In 1834, the Grand National Consolidated Trades Union was founded, uniting workers from different trades.
Marxism and Socialism
In the mid-19th century, Karl Marx and Friedrich Engels criticized the exploitation of the working class and advocated for a workers’ revolution to overthrow capitalism. This revolution would establish a worker-led state, socialize property, and achieve a classless society. From the late 19th century, Marxists promoted the creation of socialist parties to advocate for worker-friendly legislation (universal suffrage, progressive income tax, 8-hour workday).
Anarchism
Thinkers like Proudhon, Bakunin, and Kropotkin shared core principles: individual liberty, social solidarity, criticism of private property, collective ownership, and rejection of state authority. Anarchists opposed political participation and the organization of workers into parties.
Agricultural Problems in Spain
Liberal land reform did not provide farmers with property ownership. Most remained laborers, with a minority migrating to cities. Cheap labor and lack of mechanization hindered productivity. Low agricultural yields and rural poverty provided little economic stimulus. Land ownership was concentrated in large estates with absentee owners who profited from low wages.
The Catalan Textile Industry
In the 18th century, Catalonia had a significant calico (printed cotton) production. In 1802, cotton imports stimulated yarn spinning and the modern textile industry. Mechanization began in 1830, using British machines. In 1833, the first steam engine began operating in Catalonia. Due to the lack of coal, many industries were located near the coast for imports. From 1860, industries moved to riverbanks to utilize hydropower, forming industrial colonies.