Second Industrial Revolution: Capitalism and Innovations
Second Industrial Revolution and Great Capitalism
Unlike Britain, other European countries lacked certain preconditions. However, between 1850-1870, industrialization gained new momentum, marking the Second Industrial Revolution. Germany and the United States experienced rapid economic growth, surpassing the British model by 1914. These changes enabled other regions, including Japan, to join the industrial race.
The second phase introduced large-scale capitalism, characterized by new technologies, service sector growth, state intervention, and changes in financing and management. This led to ideological shifts.
New Technologies and Industries
This era saw advancements beyond existing techniques, driven by science and technology:
- New Energy Sources: Electricity, oil, and natural gas.
- New Industries: Internal combustion engine, improved steel production (Bessemer, Siemens-Martin, Thomas Gilchrist), nickel, and aluminum.
- New Technologies: Chemical, steel, nickel, and aluminum.
- Applications: Caustic soda, fertilizers, dyes, acids, explosives, rubber, plastics.
- Transportation: Cars, bicycles, dynamo, Daimler-Benz diesel engine.
- Electromagnetism and Radiation: X-rays, radio waves, radioactivity.
- Lighting: Edison lamp.
- Entertainment: Photography, cinema.
These innovations, originating in technical schools and laboratories in Germany and the U.S., quickly impacted daily life.
Service Sector Development
The tertiary sector grew significantly, with increased jobs in offices, shops, banks, and insurance companies. New professions like sales and advertising emerged, alongside professionalization in public administration and education.
State Intervention
Outside Britain, states drove industrialization through protectionist policies, imposing tariffs and customs duties. By 1875, states replaced the commercial bourgeoisie, promoting railways, legislation, and corporate concentration.
Changes in Company Financing
Unlike Britain’s family-based reinvestment, Europe and the U.S. utilized banks for industrial investments. This led to joint-stock companies and corporate concentration, facilitating scientific research and large-scale production.
Transformation in Business Management
Businesses shifted from family control to management by managers, engineers, and executives. New production methods like Taylorism (Frederick W. Taylor) and Fordism (Henry Ford) emerged to maximize efficiency.
Changes in Mentality and Ideology
Liberalism gave way to economic nationalism in Germany, supporting imperialist theories and doctrines. This unrest led to socialism.
Transportation
Until 1860-1870, sea and river transport were dominant. Railways played a crucial role in creating national markets and became international. Steam engines improved river and sea navigation.
New Means of Transport
- Bicycle: Became popular in the 1880s.
- Motorcycle: Followed the bicycle.
- Car: Introduced by Daimler and Benz (1885-1886), initially a luxury item.
Agrarian Crisis
Cheaper food and raw materials from other continents caused a crisis, despite protective measures.
Communications
Industrialization revolutionized communications with the mail, telegraph, and telephone. Marconi’s first radio broadcast and inventions like the microphone, phonograph, gramophone, and photography marked this era.