Industrial Revolutions & Their Impact: A Historical Overview
The First Industrial Revolution (1760-1830)
Overview
The First Industrial Revolution was a radical shift in production, transitioning from manual labor in small workshops to machine-based work in large factories. It began in England around 1760 and spread across Europe by 1830, primarily impacting the textile and steel industries. Steam power emerged as the dominant energy source.
Causes
- Political Climate: The political landscape after the 18th-century revolutions aligned the interests of the landed aristocracy and the bourgeoisie, fostering an entrepreneurial spirit and legislation that promoted economic growth.
- Population Growth: Improved nutrition and reduced mortality led to increased demand for products and a larger labor pool for factories.
- Transportation and Communication: Advancements in these areas boosted trade and facilitated the development of internal markets.
- British Colonial Dominance: This provided capital, raw materials, and markets for industrial goods.
- Resource Availability: Abundant energy and mineral resources, such as coal and iron, fueled industrial development in Britain.
- Agrarian Revolution: This spurred population growth, provided labor for industries, and contributed capital for factory construction.
Consequences
- Global Power Shift: International influence became based on industrialization rather than land or military might, creating a divide between developed and underdeveloped nations.
- Urbanization and Economic Growth: The revolution fueled population growth, urban expansion, and the development of other economic activities, further bolstering capitalism.
- Rise of the Industrial Proletariat: A new class-based society emerged, leading to the formation of the industrial proletariat and the rise of labor movements and anti-capitalist ideologies due to harsh working conditions.
- Scientific and Technological Advancements: The revolution fostered significant progress in science and technology.
The New Class Society
The political and industrial revolutions dismantled the stratified society of the ancien régime, establishing a new class system based on wealth and merit. The bourgeoisie became the dominant group, while workers formed the subordinate class. The nobility, despite losing privileges, retained much of their power and wealth, particularly in Southern and Eastern Europe. The peasantry remained the largest group.
International Relations in Europe (1871-1914)
The Bismarckian System (1871-1890)
Germany, Austria-Hungary, and Russia formed an alliance against France to isolate the latter after its loss of Alsace and Lorraine in the Franco-Prussian War. This system aimed to prevent a Franco-Russian alliance. However, it ultimately failed due to the Austro-Russian rivalry over the Balkans, leading to an armed peace.
Armed Peace (1891-1914)
This period of peace saw European powers re-arming and forming two alliance blocs: the Triple Entente (France, Russia, and the United Kingdom) and the Triple Alliance (Germany, Austria-Hungary, and Italy). This ultimately led to the First World War.
The Second Industrial Revolution (1870 Onwards)
Overview
Beginning in the U.S. and Germany, the Second Industrial Revolution involved significant technical and organizational changes.
Technical Changes
New energy sources like electricity (for lighting and engines) and oil (for engines) were adopted.
Changes in Work Organization
- Fordism: Henry Ford’s concept of mass production in large factories.
- Taylorism: Frederick Taylor’s system focused on time-saving measures, including minimizing worker movement within factories.
Progress of Economic Activities
- Agricultural Improvements: New electric-powered machinery increased production and yields, improved food preservation, and cheaper transportation streamlined distribution.
- Transportation and Communication Advancements: Electricity revolutionized vehicles, leading to the emergence of the car in 1886. Navigation improved, and aviation emerged with the Wright brothers’ first flight in 1903 and Bleriot’s Channel crossing in 1909. Railway expansion facilitated westward expansion in the U.S. and eastward expansion in Russia, along with increased immigration. The Panama Canal’s completion in 1914 reduced travel times and costs between the Atlantic and Pacific.
- Communication Breakthroughs: The telephone (Bell, 1876), phonograph (Edison, 1877), cinema (Lumière brothers, 1895), and radio (Marconi, 1906) transformed communication.
The Development of Capitalism
Large-Scale Capitalism
The need for substantial capital to finance new machinery and factories led to large-scale capitalism, characterized by corporate and financial concentration.
Corporate Concentration
Businesses merged to eliminate competition and control markets. Key forms of concentration included:
- Cartels: Agreements between businesses to fix prices or divide markets.
- Trusts: Mergers of several companies of the same type to achieve similar goals as cartels.
- Holding Companies: Companies that control others through majority share ownership.
Financial Concentration
Large banks emerged, providing credit to industries and becoming shareholders in industrial, commercial, and agricultural enterprises. Major banks included Deutsche Bank (Germany) and Crédit Lyonnais (France).
Social Changes
While the bourgeoisie maintained social dominance, the proletariat in Western countries saw improvements in their living conditions due to lower prices from mass production. Labor movements pressured states to implement labor and social legislation, regulating working hours and providing insurance, particularly in Germany, France, and the UK.
Changes in the Labor Movement
- Increased Membership: As states recognized freedom of assembly and association, labor movements grew and socialist parties emerged, advocating for social reforms and political power. The German Social Democratic Party was formed in 1875.
- Revival of Labor Internationalism: The Second International, founded in Paris in 1889, focused on socialist issues, including the conflict between pure Marxists and revisionists. It condemned imperialism and war, promoting solidarity among peoples.