The Industrial Revolution: Transformations and Impact
The Industrial Revolution
Features
- Technological innovations were applied to economic activities. New machines were invented to tap into new energy sources like coal and oil, and to generate electricity.
- Factories emerged, revolutionizing manufacturing. Previously, goods were manufactured in workshops.
- Production shifted towards sales. Before the revolution, most production was for home consumption or local markets.
Consequences
- Machinery significantly increased output. It became possible to produce many more products, leading to lower prices.
- Cities multiplied and their populations increased. Many farmers migrated to cities to work in factories.
- Society transitioned from agrarian to industrial.
Phases of Industrialization
- First Industrial Revolution (starting in 1760)
- Second Industrial Revolution (starting in 1870)
- Third Industrial Revolution (occurring in the present day)
Factors Driving the Industrial Revolution in Britain
The Industrial Revolution began in Britain in the late 18th century due to several factors:
- Demographic Growth: Declining mortality rates led to population growth, increasing demand for agricultural and industrial products, and providing more manpower.
- Agricultural Revolution: Crop rotation replaced fallow periods, and iron plows replaced wooden ones. Increased productivity fed the growing population.
- Mineral Resources: Britain possessed abundant coal, a crucial resource for industrialization.
- Expanding Markets: Growing markets created demand for British products.
- New Mentality: A focus on investment and profit fueled innovation.
Great Britain as the First World Power
Britain became the first industrial power:
- Textile Industry: The cotton textile industry employed around 350,000 people in spinning and weaving. Cheap, high-quality British textiles dominated global markets.
- Steel Industry: The steel industry flourished. Using coke (a coal derivative) instead of charcoal prevented deforestation and boosted blast furnace construction.
Industrial development was significantly aided by James Watt’s invention of the steam engine, which was applied to mining, industry, and transportation. Coal provided abundant, cheap, and powerful energy, but also caused significant pollution.
The Transportation Revolution
Existing transportation methods couldn’t keep up with the demand for moving products to markets.
- Pre-industrial Transportation: Sailing ships transported bulky goods, while wagons moved people and goods over land.
- 19th Century Innovations: The steamship and railroad emerged.
Impact of the Transportation Revolution
New transportation methods increased speed, capacity, and safety, leading to a significant economic impact:
- European goods reached distant markets.
- New jobs were created.
- Coal consumption and iron production increased.
Daily life also changed:
- Diets improved.
- Emigration to other countries and continents became easier.
The Rise of Corporations
At the start of the Industrial Revolution, most businesses were small and family-owned. As companies grew in the 19th century, individuals struggled to finance them. This led to the emergence of corporations:
- Joint-Stock Companies: A company’s capital is divided into shares that are bought and sold on the stock exchange.
- Issuing stock allowed companies to raise capital without relying on bank loans, facilitating investments.
The Second Industrial Revolution
Industrialization spread from England to the Continent, with France and Belgium among the first to industrialize.
From 1870, large-scale capitalism, or the Second Industrial Revolution, developed. This period saw the growth of new industries and energy sources, and the creation of larger companies. New energy sources included:
- Electricity: Edison invented the dynamo for electricity generation and the light bulb.
- Oil and its Derivatives: Used for nearly all modes of transportation.
Key new industries included chemicals, electricity and its application to telecommunications, automotive, and metallurgy. These businesses required significant capital, which banks provided. Germany, Japan, and the U.S. became prominent during the Second Industrial Revolution, with the U.S. emerging as a major world power by World War I.