The Industrial Revolution
The Industrial Revolution
What is it?
change in the way goods
are produced in the late 18th
century through the 19th
Machine production replaces
does it begin?
does it begin in Britain?
Natural resources (including large labor supply)
Entrepreneurs (willing to take risks – profit motive)
Impact of Agricultural Revolution
spur Industrial Revolution (actually works
Ind. Rev also helps Ag. Rev by providing new
machinery to help grow crops more efficiently
How does Ag. Rev lead to Ind. Rev?
farming methods (Crop Rotation) = increased
population (labor source)
forced small farmers out
► Where do they go?
-Urban centers (cities) where factories (large buildings
where goods are manufactured – mass produced) are
-Leads to Urbanization
-People migrating to city areas in mass numbers
Short Term Effects of
Urbanization and Industrialization
cities become overcrowded, unsanitary, and
dangerous places to live (especially early on)
Cholera epidemics widespread
Life expectancy could sometimes be low (esp. early in
conditions could sometimes be difficult
for factory workers
**However, life expectancy and standard of living
generally increase overall in industrialized nations
► Middle class grows and prospers
► Tension develops between labor and management
Short Term Effects Cont.
spreads to nations and areas
with the same favorable conditions as
War of 1812 (blockade) = greater
economic independence in U.S.
business owned by stockholders who
share in the profits but are not
responsible for company’s debt. (Helps
fund larger operations - expansion)
Long Term Effects
Rise of the labor movement (Unions)
unite to help solve problems associated with
early industrialism (poor working conditions,
Abolition of slavery
►Slavery not compatible with industrialism
►Industrial nations among the first to outlaw
►Ex ... Suffrage movements?
Right to vote
Education (Accessible for more people)
for educated work force (problem solving skills)
Long Term Effects Cont.
Seizure of a country or territory by a
stronger country in order to secure
Industrialized nations (Britain, France,
U.S. and later Japan, Germany, Russia,
and others) establish colonial empires
►New Economic Theories
Laissez-Faire (Capitalism), Socialism,
system based on private
ownership of property
Government stays out of the business sector
Wealth of Nations
Hand” competition/selfinterest will guide resources most
of wealth by
government; government owns or
controls the means of production
Still some private ownership of
small businesses by individuals
on a limited basis
Supposed to answers “evils” of
stage of socialism; (Socialism on
steroids!!!) elimination of social classes;
replace competition with cooperation
► Karl Marx and Friedrich Engels
History advances through conflict
Economics were the major force of
►Proletariat (Workers) v. Bourgeoisie
►Market Economy (Free-Market)
Ruled by supply and demand; individuals
own property and make decisions that
drive the economy
Government makes most or all of the economic
decisions (Socialism, Communism)
Contains elements of both market and
Examples (No need to write these)
Jeans produced because people buy them.
Jeans are produced because the government decides
to produce them to meet the needs and wants of
An individual owns a grocery store; she decides what
to stock in the store and pays her workers the lowest
wages for which they will work.
An individual manages a grocery store for the
government; government decides what items will be
stocked and sets the wage rate for workers.
An individual owns a grocery store; he decides what
to stock in the store and pays his workers a minimum
wage set by the government.
are the disadvantages to an
individual in each of the three systems?
one do you think connects best
with the Enlightenment? Why?