Industrialism is the name for the economic
changes which began in Britain in the 1700's
and swept through other western nations
Prior to the Industrial Revolution, people lived in
small villages, raised their own food and made
their own goods.
Textiles are cloth and cloth products. People in
Britain made clothes in their cottages and homes
and merchants traveled from cottage to cottage
buying and selling wool, cotton and clothes.
The invention of textile machinery was the
beginning of industrialization.
In the early 1700's, the British government
passed a law to allow landowners to enclose
their property. This allowed them to raise larger
crops and fence off pastures.
Enclosure allowed farmers to make more money,
which they began investing in banks with
bankers. Bankers looked to help people make
more money. Bankers provided capital.
Many peasants had to move off the land with
enclosure, and they moved to the cities. They
became available for work in industry.
This is called labor.
People began to live healthier in the 1700's due
to the discovery of new foods and the
diminishing of diseases like the Black Plague.
James Hargreaves invented a spinning jenny to
weave cotton into thread quickly
Richard Arkwright developed a way to power a
spinning machine with water
Edmund Cartwright made a powered loom that
could spin the thread into cloth as quickly as it
Powering the New Machines
James Watt designed a steam engine that could
power the new machines in 1769.
Steam soon replaced water as the major source
Coal, Iron and Steel
Henry Cort found a way to use coal to turn iron
ore into pure iron.
Iron became cheaper and coal mining became a
Henry Bessemer invented an inexpensive way to
turn iron into steel, a stronger substance than
Because machines got so much bigger, they
began to be placed in factories---places where
people who operated the machines could come
In order to afford the new machines and
equipment for industry, people began making
partnerships and corporations.
A corporation sells shares in the company to
In 1807, Robert Fulton (American) developed a
boat powered by steam.
In the 1800's, steam-powered locomotives were
Britain's advances gave them an advantage over
other countries. British government passed laws
to make the new inventors and owners happy so
they would not move to other countries.
The Factors of Production
In order for a country to industrialize, the factors
of production are needed. Britain had all the
necessary factors of production for industry.
Land is the most important factor of production.
Land represents all natural resources. These
are minerals, water, wood, soil, etc. Because
natural resources may be exhausted, they
represent the idea of scarcity.
Labor represents people available to work in
industry. Because of enclosure and a growth in
population, there were more people available to
work in the factories in Britain.
Capital is money and the ability to create wealth.
Banks lend money. Equipment makes products.
Thus, both equipment and cash are capital.
Inventors and business investors are called
entrepreneurs. They create ways to make
money through ideas and organizations.
The British government favored industry and
passed laws to help people build industry.
Effects of Industry
People lived longer lives
1. People moved around more: Immigration
2. People moved to cities and cities got larger:
3. The average person had more wealth
4. Wealth was concentrated in the Middle Class
Owners of factories became a class called
5. Workers became increasingly less wealthy;
they were called laborers, commoners, serfs...
These countries became
industrialized after Britain
The United States
Industrialized countries were concentrated in the
west and became more advanced than those in
The New Faith in Science
Electricity, telegraphs, telephones, cars, planes
all were inventions made to create wealth.
Because they made people's lives easier, people
began to trust scientific discoveries to solve
problems in societies.
The New Social Order
For hundreds of years, power in societies rested
with nobles (the aristocratic class). They owned
land but did not work. Nobles were born nobles.
The new factory owners were able to live like
wealthy nobility. Owners became the new
wealthy or the new rich (nouveau riche ).
The Working Class
Entire working class families, children and adults
had to work to make enough money to live. They
worked for wages. Working conditions were poor
and work hours were long. Eventually new laws
were passed to ease some of their struggles.
New Political Ideas
What should the role of government be in the
New Societies created from industrialization?
Liberalism is the political philosophy based on
the ideas of the Enlightenment. The ideas of
liberalism are different than the ideas of liberals
Basic Principles of Liberalism
● People have basic rights
● People should have equality before the law
● Governments should be limited by constitutions
● Elected assemblies or parliaments should make
● Voters should be male citizens
British economist Adam Smith believed that
government should not interfere with business.
Many of the new middle class agreed with him.
This became known as laissez-faire, a french
term meaning “to let be”
Jeremy Bentham and John Stuart Mill were two
British thinkers who believed that the role of
government should be to promote the greatest
good for the greatest amount of people.
Otherwise the government is not useful—this is
Utilitarianists supported more rights for women,
better education and improved health services.
Socialists believed that factories, land, capital
and raw materials (the means of production)
should be owned and controlled by the society
through the government.
Marx was a German living in London with a
wealthy industrialist family (Engels). He believed
that the competition among the social classes
was harmful to society. He thought that the
working class (proletariats) would rise up and
create a communist society, which would have
not classes---everyone would be equal. He used
the French revolution as an example.
Understanding the four ideas about
government and the economy
Laissez Faire capitalism
Supply and Demand Capitalsim—
how it works
Demand: the desire for products
Supply: the availability of products
Cost of Productions: what it costs the owner to
make the product
Price: what the consumer pays for the product
Profit: Price minus cost
Scarcity: the concept that all of these forces
operate in a world where there is never enough
Opportunity Cost: the second best thing to do
All things being equal, people will demand more
of a product at a lower rather than higher price
Other demand determinants: fashion, trends
All things being equal, producers will make more
of a product when they can sell it at a higher
In theory, supply and demand will work against
each other to create a fair market price---and
people will get the best goods at the lowest
The Iron Law of Wages
According to David Ricardo, labor follows the
same forces as supply and demand. The wage
is the price of labor.
In order for prices and wages to be fair and
societies to get the best goods at the lowest
prices, laissez faire capitalists believe that
government should not interfere with the
economy or at least interfere very little
Liberalist and Capitalists
Utilitarian capitalists suggest that government
must intervene in the economy to insure equality
and justice to the most people. Otherwise the
working class lives will never improve, because it
is not profitable for owners to treat them better.
Some people wish for a government that
controls some of the means of production in the
interest of equality and justice.
Marx did not think the government should
interfere in the economy but allow the natural
revolution of the proletariats to occur, the end
result would be a classless society.
Artists and writers reacted to the Age of Reason
by valuing feelings and imagination
Poets like William Wordsworth (Britain) and
Johann von Goethe valued nature and the past.
Beethoven was the first romantic musician. His
work expressed strong emotion.
Some writers and artists turned away from
romanticism and focused on ordinary people in
While romanticists turned from industrialist
society, realist tried to examine it.
Modernism and Impressionism
Modernists studies social problems in their work,
such as alcoholism, crime and women's rights.
Some believed that the outer world was merely a
reflection of the inner world of an individual.
Impressionists were artists that studies the way
light effected objects.
Science and Medicine
In 1868, Louis Pasteur proved that germs
caused diseases and heating germs could cure
Joseph Lister improved surgery with sterile
Gregor Mendel uncovered the principles of
Albert Einstein proved that space and time were
relative, not permanent He also developed the
theory of relativity.
Plants and animals change over time according
to the laws of survival of the fitness and natural
Some people applied his ideas to society to
justify the inequalities of industrial capitalism.