All of this was about to change. Industrialization was coming!!
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- Beverly Gaines
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2 England in 1700: Was a rural, agricultural society. Most people lived on farms. They grew their own food, made their own clothing and worked hard Most people were poor and, if harvest failed, they risked starvation. There were no organized social welfare programs Sickness and disease were common, infant mortality was high, and the average life expectancy was low. All of this was about to change. Industrialization was coming!!
3 Industrialization: The process in which a society or country (or world) transforms itself from a primarily agricultural society into one based on the manufacturing of goods and services. Individual manual labor is often replaced by mechanized mass production and craftsmen are replaced by assembly lines.
4 INGREDIENTS OF AN INDUSTRIAL REVOLUTION: CAPITAL: refers both to money and to fixed capital (factories and machines) LABOR: workers NATURAL RESOURCES: materials that occur in a natural state and has economic value. MARKETS: places and audience to buy and sell merchandise to TRANSPORTATION: ability to get goods from one place to another IDEAS, INNOVATIONS, & ENTREPRENEURS: gains made in important technologies to help with production
5 WHY WAS ENGLAND FIRST? The Industrial Revolution took place in England between
6 CAPITAL Gentry (Gentlemen landowners) Many gentry had savings that they could spend to do business Banks Standardized Currency Loans were available Quick transfer of $ possible Stock Exchange Another source of money for businesses Insurance Security for businesses Colonies Large amounts of money from colonies
7 LABOR Many people looking for jobs Why? Enclosure Acts: stated all farmers had to fence their land or lose it. (before most towns had lands owned by the government which all people were allowed to graze their animals on). Farmers had to fence in animals or sell land Most small farmers couldn t afford this and had to sell their land Result: Big farmers got most of the land Many people need workà they go to the cities
8 NATURAL RESOURCES In England: Large deposits of iron-ore and coal Colonies Lots of resources Especially cotton
9 MARKETS Who bought the goods? Increasing population in England Monopoly on markets in colonies
10 TRANSPORTATION Access to canals, rivers, and sea Railroads & steamships Led to over 50% drop in the cost of transportation Led to standardization of time so that there would be no accidents Helped unify country
11 IDEAS, INNOVATION, ENTREPRENEURS Steam Engine: (James Watt) Allowed factories to be built closer to the labor (cities did not have to be near water any more Cotton gin (Eli Whitney) Cotton separated from the seed much quicker Spinning Jenny (James Hargreaves) Bridged the gap between the spinning wheel and the large factories Factory innovations Machines replace hand tools Smelting Created a better quality of iron English encouraged innovations Patent system let inventors profit from their inventions Royal Society gave prizes to encourage innovation Money available for investment in inventions Example: New rich farmers wanted better methods Results: seed drills, reapers, artificial fertilizers Results: Workers need very little skill and received very little pay
12 The Impact of the Railroad
13 Industrial Staffordshire
14 OTHER: Population (Both a cause and effect) Huge increase % increase % increase Why? Better health, food, homes, medicine Lots of new workers Stable government Revolution finished by 1700 Not ruined
15 Economic Ideas/Systems of the Industrial Revolution: Industry brought great wealth to some and imposed hardships on many.
16 Domestic System (also called Cottage Industry) Before the Industrial Revolution, the system in which products were manufactured in homes with materials provided by merchants the workers involved could work at their own speed while at home or near their own home. the production was very slow and the finished product was simply not enough to Output varied A better and faster system of production was needed.
17 Factory System With the Industrial Revolution, machines were made that could weave and spin much faster than people could. Rather than working at home, people worked in factories, tending the machines. People lost the freedom to work when and how they wanted in their own homes. BUT, more cloth was made than ever before
18 Factory Production Concentrates production in one place [materials, labor]. Located near sources of power [rather than labor or markets]. Requires a lot of capital investment [factory, machines, etc.] more than skilled labor.
19 Textile Factory Workers in England looms 150, 000 workers , 000 looms 200, 000 workers , 000 looms >1 million workers
20 Capitalism: an economic system characterized by private ownership and the investment of wealth for profit
21 Laissez-faire: hands-off approach by government to business
22 Adam Smith The Wealth of Nations: In the 1700s, he wrote that the competition between business to make the most money was good for everyone. The best businesses, the ones that made the best goods at the cheapest prices, would win. Needed a free market (so laissez-faire) where individual sellers and buyers act on self-interest
23 Socialism: an economic system characterized by communal ownership of the major means of production and private ownership of the rest
24 Communism: an economic system characterized by communal ownership and the lack of private property. Proletariat= working class Bourgeoisie= middle class
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