The Industrial Revolution

I. Demographic Change

 Prior to the eighteenth century, the levels of populations seemed to flow in

cyclical, or wave-like patterns, depending on natural phenomena such as
crop failures, plagues, etc.
 Around 1730, a new era in Europe’s demography began. During the 18th
century;
-Europe’s population skyrocketed, jumping from 120 to 190 million. Prussia,
Sweden, Spain, France, and especially England experienced tremendous
population increases during this period.
-After this time, the cyclic behavior of the populations stopped, and Europe’s
population simply continued to increase.
 The rapid population growth was, according to historians, caused by a
decline in mortality rates in all the countries except for England. The decline
in mortality rates occurred b/c Europe began to enjoy a more stable and
better food supply
 Disease was still a major problem, but, on the whole, mortality rates declined.

II. Economic Growth

 During the 18th century, overall wealth also increased, although the growth
was not consistent. Still, the overall trend was a positive one.
 Significant growth began around 1730 and continued until 1815. This period
was characterized by gradual price inflation
- The growth, however, did not affect all sectors of society in the same way. Though
the gradual increase in prices was good for landlords, employers, merchants, and
landed peasants, it was very bad for the poor, landless peasants, who could barely
afford to live.
 Protoindustrialization led to increased manufacturing and population growth
in rural areas. Additionally, it strengthened marketing networks, helped
merchants get more $
III. Changes in Industry
 Though, during the 18th century, most industries remained the same,
dramatic change was beginning to occur, especially in the manufacturing of
cotton cloth. The changes in industry were meant to increase the
productivity of labor through new technologies.
 Increases in performance: before Europeans could change the format of
industry, they had to face major obstacles and make changes that affected the
very structure of European society.
-Europeans faced many difficulties as they attempted to change the structure of
the economy, such as:
-Small Market Size: since European countries were cut off from one another for
both physical and political reasons, merchants were forced to deal with very limited
markets. This slowed the growth of specialized manufacturing and limited the
mobility of capital and labor.
-Skewed Distribution of Wealth → since the aristocracy used most of the income,
merchants would cater to their desires and make small quantities of luxury goods,
as opposed to lots of cheap goods that would be accessible to the public. This
screwed up supply and demand.
-Property Rights/Privileges → these traditional institutions worked against
innovation, as rents and tolls often sucked up capital that would otherwise be
available to both would-be consumers (peasants) and the entrepreneurs
(merchants).
-Guild/Government Regulations → were huge problems for the merchants. As
the guild regulations established a standard, traditional procedure for industry,
which was not be changed, they made innovation exceedingly difficult. Government
restrictions on economic activity and licensing of monopolies only made it more
difficult for merchants.
-Cultural Attitudes → as many Europeans, especially the nobles, still regarded $
as dirty and simply wanted to have their titles, going into business was discouraged.

III. Laissez-Faire Economics

 Many Europeans began to question and criticize the barriers that prevented
further industrialization and innovation. They called for less control of the
economy.
 Adam Smith: a Scottish philosopher who epitomized the concerns and
desires of the age, and wrote An Inquiry into the Nature and Causes of the
Wealth of Nations
-Smith believed that $ was not actually wealth, but only showed it, and that
real wealth consisted of the added value of manufactured items produced by
invested capital. Most importantly, however, he stated that economic
progress required that each individual be allowed to pursue his/her self-
interest freely w/out restrictions for this would lead to economic growth.
- Smith also introduced the concept of the invisible hand that stated that if all
individuals follow their own self-interest, it would be for the economic good
of everyone, since everyone will do what they do best.
 Laissez-faire economics really caught on, especially in England, and in 1786
France and Britain signed a free-trade treaty. Guilds were growing weaker,
and in 1791, the French got rid of them. In the 1790s, the English also began
to pass laws against them, and the merchants gained freedom.

IV. England Begins to Industrialize

 England was the first nation to develop a social structure supportive of
innovation and economic growth. So, why was it England? This is b/c of
many advantages, such as:
-Geography: England was close to the sea, which allowed trade w/foreign nations
and colonies. Also, England had two great resources essential to industry, iron and
coal, as well as a lot of good, productive farmlands.
-Existing Capital to Invest → the English began with a store of capital from the
colonies, which led to the creation of a banking and investing system – the Bank of
England – in 1694. The bank took responsibility of England’s public dept, sold
shares to the public, and met the interest payments for shareholders. This helped
stabilize the markets.
-Free Trade → the English had markets in their colonies, the other European powers
(free trade agreement w/ France in 1786) and the Spanish colonies b/c of the
Treaty of Utrecht.
-Labor Supply → slavery, cheap labor (peasants) due to the Enclosure Acts, which
drove the peasants out of the communal farmlands and made them look for work.
-Friendly Political Environment → since the gentry were in control of the
government (since they had Parliament) they could pass laws favorable to the
merchants.
-Navy

V. Cotton Begins Industrialization

 Since England had developed a social structure supportive of
industrialization, all it needed was a take off industry, or an industry that
would begin a pattern of industrialization all the others would follow. In
England’s case, this industry was cotton manufacturing.
 Due to the slave labor in the plantations, there was a very large supply of raw
cotton. There was also a very high demand for the durable, cheap cotton
goods. However, the putting-out system had reached its limits in
productions, so merchants were ready to take the next step towards
industrialization.
 Richard Arkwright: inventor of the water frame, which was able to twist
fibers into thread using waterpower.
 James Watt: inventor of the steam engine. Arkwright asked Watt to use steam
engines to drive his spinning machines, and the first factories were created.
 Edmund Cartwright: inventor of a power-driven loom.
-Though the opposition of handloom weavers and technical flaws made the
loom not really become available until the 19th century, once it became
available, both spinning and weaving could go incredibly fast.
 The cotton industry was revolutionized by the 19th century, for goods could
be made incredibly fast, and merchants could house all their workers in
factories and watch them work.
-After industrialization, the price of cotton fell tremendously, and it became
available to many poorer people.

VI. Changes in Agriculture

  In England, many peasants were able to leave the country and go to the city,
where they found work as factory laborers, because of the new agricultural
techniques, which caused an increase in efficiency and productivity.
 If it hadn’t been for these changes, the peasants could not have left.
 Convertible Husbandry: instead of letting land lie unused every second or
third year
 Charles Townshend: innovator who proved the value of planting turnips
instead of resting land.
 Jethro Tull: noble who was into agricultural innovation.
-In addition to convertible husbandry, innovators experimented with selective
breeding of animals.
 Enclosure Movement: throughout Europe, all towns shared communal lands,
which were divided into small plots. This made it very difficult to change
agricultural techniques, since the village as a whole had to agree to a certain
technique.
 But, in England, Parliament was able enclose all the land in a village, even
against the will of the village itself. In the end, the communal field system
was practically eradicated in England, leading to the domination of rural
society by great landlords and their tenant farmers. Enclosure also forced
many peasants to leave for the cities, where they could then find work.
 . Since, throughout the continent, peasants were barely surviving, they had
little time to worry about efficiency; change came very slowly, especially in
Eastern Europe.