The Industrial Revolutions: Transforming Economies and Societies
The Industrial Revolution
Economic and Social Transformations
The Industrial Revolution was a period of significant economic and social change, marked by a new model of economic development that drastically altered living conditions.
Key Figures and Concepts
Adam Smith
A leading economist of the 18th century and a proponent of free trade, Adam Smith is considered the father of capitalism. His seminal work, The Wealth of Nations (1776), argues that a nation’s wealth lies in its labor, society consists of individuals driven by self-interest, and the state should not interfere with the economy.
Thomas Robert Malthus
A 19th-century economist, Malthus is best known for his Essay on the Principle of Population. He argued that population growth, which increases geometrically, would eventually outstrip food production, which increases arithmetically, leading to the need for population control.
Free Trade
This new economic system, emerging with the Industrial Revolution, is characterized by the division of capital and labor, individual appropriation of profits, a class-based society, and continuous technological renewal.
Demographic Revolution
A rapid population increase occurred due to improved nutrition (driven by agricultural advancements), medical progress, declining mortality rates, and better hygiene.
Class Society
Society divided into groups based on economic status: the bourgeoisie (dominant middle class) and the working class (employees).
Protectionism
An economic system that safeguards national trade by restricting imports and making foreign goods more expensive.
Key Developments
- Enclosures: 18th-century laws that significantly impacted land use for maximum benefit.
- George Stephenson: British engineer who invented the locomotive in 1829.
- James Watt: Scottish inventor who, with Matthew Boulton, patented the improved steam engine in 1769.
- Railways: A crucial mode of transport during the Industrial Revolution.
- Crop Rotation: The four-year Norfolk system, combining cereals with turnips or clover, became widespread.
- Advances in Textile Machinery: Innovations like Kay’s flying shuttle (1733), spinning machines (late 18th century), and Cartwright’s power loom (1785) increased productivity and lowered costs.
The Second Industrial Revolution
Late 19th Century and Beyond
The Second Industrial Revolution, marked by new scientific and technological discoveries, transformed work organization, business practices, and society. It led to significant growth in production, trade, and transport, as well as migration and the industrialization of other countries. Europe’s political and economic dominance expanded, with significant colonial interests in Asia and Africa.
New Energy Sources
Oil and electricity emerged as new energy sources. Electricity offered advantages over coal, being cheaper, transportable, cleaner, and more versatile. However, it could not be easily stored in large quantities. Oil, commercially exploited from 1859 in the USA, became a dominant energy source due to its higher calorific value and numerous derivatives. Improvements in the internal combustion engine by Daimler and Benz led to the development of the automobile.
Transportation Advancements
Railways continued to expand, while electricity enabled new transport systems like trams and subways. Improvements in shipbuilding shortened transoceanic voyages, facilitating European migration. The Panama Canal (1904) and Suez Canal (1869) further enhanced trade routes. The invention of the tire, pedal, automobile, and airplane revolutionized transportation.
Population Growth and Migration
Europe’s population doubled during this period. Uneven wealth distribution led to significant economic imbalances and migration to the U.S. and Latin America. Rural exodus continued and intensified.
Changes in Work and Business
The 1870s economic crisis, caused by overproduction, led to changes in work organization and business practices. Large companies survived, while small businesses struggled. To enhance productivity and competitiveness, companies adopted mass production, standardized models, and Taylor’s assembly line. Industrial concentration increased, leading to various forms of mergers and monopolies. Multinational corporations emerged, leveraging global resources and minimizing costs.
Increasing International Competition
By 1914, Britain faced competition from Germany, which became a leading industrial power. Industrial progress led to increased production and trade. The economic crisis of 1870-1880 prompted a return to protectionism. The internal market and trade flourished, with the rise of department stores, purchasing agreements, and mail-order services. Banks played a crucial role in financing investments.