Industrial RevolutionIndustrial Revolution

Revolution not by speed but by Revolution not by speed but by lasting impact...lasting impact...

IndustrializationIndustrialization

The process of using machines to produce The process of using machines to produce goodsgoods

Why the 18Why the 18thth century? century?

Increased population due to Increased population due to

- decline in mortality (no more plague!- decline in mortality (no more plague!

smallpox inoculation!)smallpox inoculation!)

- new foods, better crops- new foods, better crops

- earlier marriage, more illegitimacy - earlier marriage, more illegitimacy

(as a result of less community controls) (as a result of less community controls)

Why?Why?

Industrial Beginnings: The Cottage IndustryIndustrial Beginnings: The Cottage Industry

- Pre-industrial- Pre-industrial

I. Why did England I. Why did England industrialize first?industrialize first?

A. Agricultural Innovations -

The Enclosure Movement

- larger fields

- New methods (crop rotation!)

SO…Small farm owners out of business

Crop Rotation: The Science of Agriculture

“Enclosed” Lands Today

Effects of new Agriculture:Effects of new Agriculture:“human capital”“human capital”

• Food supply Food supply increased, so…increased, so…

a. Population a. Population

b. More people want more b. More people want more stuffstuff

c. Rural to urban migration – c. Rural to urban migration – move to citiesmove to cities

1. Factors of Production:1. Factors of Production:• Definition: Definition: resourcesresources

needed to produce needed to produce goods and servicesgoods and services

-Land-Land

-Labor (work)-Labor (work)

-Capital ($)-Capital ($)

B. Resources: England had them

2. Raw materials

COAL!

METAL!

WOOL!

And…

WATER…

Canals: Britain’s Canals: Britain’s Earliest Earliest

Transportation Transportation InfrastructureInfrastructure

Coalfields & Industrial Areas

C: Business Friendly C: Business Friendly government government

Why the Continentwas 2nd?

Industrial Production by Country

II. New InventionsII. New InventionsA. Textile production (wool, cotton, etc):A. Textile production (wool, cotton, etc):

- Spinning Mule (powered by water)- Spinning Mule (powered by water)

Big! Not for use at home!

B. FactoriesB. Factories• Large buildings with Large buildings with

large machineslarge machines

• Possible benefits? Problems?

Textile FactoryWorkers in England

1813 2400 looms 150, 000 workers

1833 85, 000 looms 200, 000 workers

1850 224, 000 looms >1 million workers

How did the factory system change workers’

lives?

Rigid scheduleRigid schedule

12-14 hour day12-14 hour day

Dangerous conditionsDangerous conditions

Mind-numbing monotonyMind-numbing monotony

III: The Steam EngineIII: The Steam Engine

• Steam powered!Steam powered!

“The Great Land Serpent”

Railroad’s effect:Railroad’s effect:

1. Cheap transport 1. Cheap transport industrial growthindustrial growth

2. New jobs (for railways workers, miners)2. New jobs (for railways workers, miners)

3. Goods (and people) now traveled farther3. Goods (and people) now traveled farther

The Impact of the Railroad

Labor

Child labor Child labor in the in the

mines: mines: “hurriers”“hurriers”

A.Class Division “Haves” vs. “Have- nots”

Rich vs. Poor

Bosses vs. Workers

III. Effects on society

B. Rural Urban migration

…Rise of cities…and all the problems that come with that

Share in World Manufacturing

Output: 1750-1900

OK, OK…so now people are working for other people OK, OK…so now people are working for other people in factories. So what?in factories. So what?

A MAJOR shift in A MAJOR shift in economic philosophyeconomic philosophy comes with comes with thisthis

WHAT IS WHAT IS ECONOMICSECONOMICS, ANYWAY?, ANYWAY?

-- jobs, industry & working conditions-- jobs, industry & working conditions

-- paying taxes-- paying taxes

-- how much money you make…and how that money is -- how much money you make…and how that money is spentspent

-- restrictions on businesses…and workers-- restrictions on businesses…and workers

??? What kinds of RESTRICTIONS might be placed ??? What kinds of RESTRICTIONS might be placed on businesses? Why?on businesses? Why?

BIG QUESTIONS DURING THE INDUSTRIAL BIG QUESTIONS DURING THE INDUSTRIAL REVOLUTION:REVOLUTION:

-- Should we just TRUST business owners and -- Should we just TRUST business owners and people to “do the right thing”? people to “do the right thing”?

-- Or should the government step in (“interfere”) -- Or should the government step in (“interfere”) to PROTECT workers and restrict business to PROTECT workers and restrict business owners?owners?

What do factory owners want?What do factory owners want?What do workers want?What do workers want?

Economics 101Economics 101: The Spectrum of Government : The Spectrum of Government Interference in EconomicsInterference in Economics

Communism(MORE gvmt. interference)

Laissez Faire

(LESS gvmt. interference)

Karl Marx: “Can’t trust business owners!”

Adam Smith: “Government keep out!”