Industrial Revolution: Britain’s Transformation & Rise of Capitalism
The Industrial Revolution: A Fundamental Economic Shift
The Industrial Revolution marked a fundamental change in the production of goods, leading to profound social and cultural repercussions. Industrialization emerged in the 18th and 19th centuries, unfolding in various stages across different nations. Britain spearheaded this revolution, achieving success by producing more in less time and at a lower cost.
Capital: The Engine of Production
Capital encompasses any element that, in conjunction with human effort and nature, contributes to production. It serves as a medium of exchange and constitutes the tools, machines, premises, and other resources involved in the production process.
British Industrialization: A Pioneering Model
The British Industrial Revolution commenced in England in the last third of the 18th century, around 1780, and subsequently spread throughout Europe. It became a pioneering model due to several key factors:
Factors of Production: The British Model
- Formation of a vast, open market with free circulation: Britain removed obstacles hindering free movement, dominating the seas and overseas trade.
- Capital stock: Commercial expansion and benefits from new agricultural techniques generated substantial capital.
- Creation of a stable financial system: Savings and investment fueled the global banking industry and the stock market.
- Increased agricultural production: This sustained the population engaged in industry, as less labor was needed in agriculture due to improved techniques and changes in land ownership. Crop rotation, fertilizers, new species, and improved livestock breeding led to the enclosure of fields.
- Global population growth: High birth rates and decreased mortality, coupled with improved nutrition and health systems, contributed to population expansion.
- Technological innovations in the textile industry: The focus was on simple and inexpensive clothing, particularly cotton. The application of the steam engine to the textile industry boosted production, making it cheaper and more efficient. This marked the rise of the first factories.
- Changes in energy sources: Coal mining and metallurgy advanced with the use of coke, a coal with higher calorific value and durability. The introduction of the steam engine helped remove impurities from iron.
- Emergence of the railroad and steamboats: These innovations drove greater demand for iron and coal, reducing costs and improving trade and communication.
- Other factors: Human ingenuity and entrepreneurial spirit played a crucial role in driving industrialization.
The Second Industrial Revolution and the Rise of Large-Scale Capitalism
Other European countries, however, lacked some or all of these conditions. From 1850 to 1870, nations like Germany and the U.S. experienced high economic growth, surpassing the British model by 1914. This second stage, characterized by large-scale capitalism, differed from British liberal capitalism. It involved the introduction of new technologies and industries, service sector development, state intervention, and ideological and mental shifts.
New Technologies and Industries
- Energy sources: Electricity and petroleum gas emerged.
- Industrial advancements: The combustion engine, steel, nickel, and aluminum industries flourished.
- Chemical innovations: New technologies led to chemical soaps, detergents, fertilizers, explosives, rubber, pasteurized and condensed milk, and plastics.
- Technological breakthroughs: The automotive industry, radioactivity, Edison’s lamp, photography, and cinematography emerged.
Service Sector Development
There was a significant increase in jobs in offices, shops, banks, and insurance. New activities emerged in sales, advertising, publishing, teaching, and administration.