THE INDUSTRIAL REVOLUTION

While the American and French Revolutions encouraged political change, an economic revolution was also occurring

The effects of the Industrial Revolution were just as far-reaching

It brought about fundamental changes in the way goods are made

It introduced mass production, the factory system, steam power, and linked science to the development of technology

INTRODUCTION

How does the free enterprise system work?

What factors caused the Industrial Revolution?

How did the Industrial Revolution change the ways people lived?

THE BIG QUESTIONS

Economics – how people meet their needs by making, distributing, and using goods and services.

The three economic questions – What should be produced How should it be produced? Who should get it?

Three ways to answer these questions – Traditional economy Ruler or government decides Free Enterprise (economic freedom)

ECONOMIC FACTORS

FREE ENTERPRISE SYSTEM

The economic freedom to make own choices (what to buy, where to work, what to make)

The right to own property, invest in business, to make a profit

Consumers have choices Government interference is limited Supply and Demand (how much is available

and how much consumers are willing to buy)

THE INTERACTION OF SUPPLY AND DEMAND

Low Demand / Large Supply

High Demand / Short Supply

PR

ICES

PR

ICES

THE RISE OF INDUSTRY

Began in Great Britain in the 1700s Britain had all the factors necessary for

production Geography Colonial possessions Political stability Global trade Prosperous agriculture Thriving middle class

INNOVATIONS IN TEXTILE MANUFACTURING

Advances in science helped inventors take a practical approach to problems

New inventions The Spinning Jenny (1764) used a single

wheel to control several spindles at a time . Increased thread production

The Steam Engine (1769) improved by James Watt and made steam power available for mechanical purposes (moved factories away from rivers and streams)

SHIFTING TO THE FACTORY SYSTEM

Prior to Industrialization, craftsmen worked at home (spinning and weaving wool, cotton, and linen by hand) – The Domestic System

Factories replaced this system Machines driven by water or steam power Many workers could be supervised and

could work at once Rate of production increased Prices dropped and demand increased

WHY ENGLAND?

Large supplies of raw materials (from colonies)

Plentiful supplies of coal and water Engineers and craftsmen were skilled at

making machinery

As demand grew for less costly British textiles, more and more factories were built , employing greater numbers of workers

SOCIAL CHANGES

Working conditions Factory owners grew richer and more powerful Conditions of the working class worsened

(unsafe, long hours, low pay, women and children exploited)

Urbanization Fewer farm workers were needed Large numbers of people moved to cities (one

of the larges population shifts in history) Cities were crowded and unsanitary Pollution increased

CONTINUED…

Growth of capitalism (another name for free enterprise)

Men, women, and children all worked in factories

Moved from villages to towns and lived in more crowded apartments

Disease spread

CHARACTERISTICS OF 19TH-CENTURY CAPITALISM

Role of the Entrepreneur: The means of production (factories) were owned by people known as entrepreneurs organize, manage, and assume responsibility for a business in hopes of making a profit.

Role of the Workers: Former farm workers left their homes in the countryside for jobs in more populated and industrialized areas. These workers provided their labor, for which they received wages.

Role of the Government: Nineteenth-century governments followed a policy of laissez-faire. This meant that the government did not interfere in relations between workers and business owners.

CHANGES IN TRANSPORTATION TECHNOLOGY

Steam engines were applied to boats (early 1800s)

Powered locomotives, thus creating railroads (1820s)

Increased need for coal, iron, and steel Greatly stimulated the growth of heavy

industry

THE SECOND INDUSTRIAL REVOLUTION

Brought on by the constant stream of innovation Introduction of electricity brought improvements to

Chemical industry Petroleum industry Steel industry

Combustible engines - automobiles Inventors

Thomas Edison – phonograph, motion pictures, light bulb (1870s)

Alexander Graham Bell – telephone (1876) Marie Curie – studied radioactivity and won a

Nobel Prize for discovering radium