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Introduction
As the middle ages ended feudalism came to an end in Europe due to Renaissance and other developments. The rise in towns and cities created a demand for goods which in turn stimulated the production of manufactured goods. But for a long time, the techniques and organization for the production of goods did not undergo any significant improvement. It was during the latter half of the 18th century that the methods of production were revolutionized.
Industrial Revolution is used to describe these developments because the changes came rapidly and they had far-reaching effects on World history.
Capitalism
This new system of economy emerged in Europe around the 15th century and emerged as an important form of economy that has continued to be an economic system in most present-day countries.
Features of Capitalism
- Instruments and means of production i.e. industries are owned by private entrepreneurs and the purpose of production is profit.
- The profit or wealth earned by the entrepreneur was used mostly as an investment for further increasing the means of production.
- Workers were wage earners who did not own anything.
- Profit was the only motive for production and selling in the market.
- This system became a replacement for the feudal system where goods were produced for local consumption but the wealth produced was for personal use or consumption by the owner.
- Economic life in capitalism was fast-moving as owners had an incentive to increase the means of production so that profits could be increased. Unlike capitalism in feudalism, there is no incentive to produce more and economic life is static.
Industrial Revolution
The desire to produce more goods at a cheaper price and thus increase profits gave rise to the industrial revolution. It led to the beginning of the Industrial Revolution in England in 1750. The Machine Age had started and soon people started losing out jobs to machines. The industrial revolution changed the way of thinking rapidly. More inventions came up that changed people’s lives.
Industrial Revolution also led to the creation of the Factory System that used machines and steam power in place of humans and animals for production.
The factory system meant that the Capitalists, who were people who brought investment and owned the means of production, set up factories that made finished products. The finished products were also under the ownership of capitalists who decided where to sell them. They earned profits and invested them to further increase the means of production.
The factory system turned early capitalism into Industrial Capitalism.
Birth of Industrial Revolution – England
England became the birthplace of the industrial revolution because of the following reasons:
- It had accumulated vast capital, that could be invested to create factories, from its overseas trade and colonial possessions. It had emerged as the unrivaled leader in Europe during the trade wars. The continuous supply of raw materials can be ensured from the colonies.
- The end of feudalism and serfdom created a class of people who were not tied to the land but could take any occupation. The big landowner in England consolidated their land holdings and ousted the small landowners. This created no shortage of labor in factories.
- A stable system of government was created in colonies and this was under the influence of the capitalist class. Thus there was no problem with government interference in the economy.
- England had plenty of sources of Iron and coal which were needed for the industries.
- The system of shipping was developed by England which made it a powerful force in Europe. These could be used for transporting finished products in colonies which would also become consumers.
Textile and Transport Revolution in England
Indian calico cloth made in Calicut, Dacca muslin in Dhaka and Kashmir shawl from Kashmir were very popular in the English market. The English traders then imported raw materials and made textile products in England for higher profits. The series of inventions further boosted the growth of textile industries in England.
- Powerloom – Speed up spinning
- Cotton gin – Speed up cleaning of cotton
- Steam engine – easy transportation of goods
- Blast furnace – cheaper and easier way of producing steel.
Transport revolution in England when Railways were started to transport coal from mines to ports and then also from ports to factories. Roads called macadamized roads were built to facilitate smoother transport by land and since water transport was easier than land transport canals were built.
Agriculture Revolution
The revolution in agriculture started before the industrial revolution as the demand for more food production was created. Mechanization of agriculture was done as the machines were used to reap and thresh. Steel plows and harrows were used for cultivating cash crops and raw materials for industries.
In the pre-industrial revolution, the land was allowed to lie fallow every third year to regain its nutrients. However, this wasn’t possible after the industrial revolution as demand for agriculture increased. Crop rotation became a popular technique to achieve balance.
The land Consolidation movement was the “Enclosure Movement”. In this, the big landowners consolidated their land holdings and evicted the small peasants. They also usurped the common pastures and grazing grounds and the small grazers and peasants had to move to cities and towns. They did whatever work was available at the wage offered. The industrialists benefited from this as there was cheap and easily available labor.
The peak of the Industrial Revolution in England
Tariff barriers
As industrialization spread to other countries production of goods started increasing. But as England was far ahead of others in the industrial revolution, its goods were far better and cheaper than their own goods.
The governments were forced to impose high import duties on goods which made them non-competitive over domestic goods. As every country started imposing tariff barriers to protect local industry, The need to explore and find new markets were felt and this fueled the race for colonies.
Race for raw materials
As countries started industrialization they wanted more and more raw materials to fuel their growth. They captured colonies and exploited them for their own benefit. The economy of the colony was subordinated and this phenomenon was called “Imperialism”.
Imperialism created friction between countries as they fought over colonies and dominance over a region. They created exclusive rights to trade with them and ruthlessly exploited the local population. Countries that industrialized late wanted to snatch colonies from developed nations. The countries that had colonies wanted more.
Consequences of the Industrial Revolution
People lost their traditional occupations and migrated to cities. The social bonds and constraints of village life were broken. The conditions of towns and cities deteriorated which created consequences for people.
However, the change the industrial revolution brought was creating an international consciousness amongst the people as trade was carried out between countries, and things that happened in one part affected the other.
Laissez faire – Leave us Alone doctrine
The capitalists had laissez-faire as a religion, it meant leave us alone. The governments should not interfere in industry and capitalists alone should be responsible for managing the affairs of industry.
The industrial revolution created miserable conditions for workers which led to reforms in industry and increased state interventions. These created the current system of labor reforms prevalent even today.
- Slums were created around industries as workers had to live nearby and a large number of workers created congestion and disease. After the epidemic outbreaks government reformed the housing policy for workers.
- Women and children provided cheap labor and so were employed for long hours. Soon factory reforms were passed to regulate work hours and ban child labor.
- Unions couldn’t be formed and the right to strike didn’t exist. However today in most countries it’s a legal right.
- Employers could fire workers anytime and workers had no security or other benefits. For a long time, they weren’t given the vote. However in the middle of the 18th century “Chartist movement” began and soon by 1929, all adults got the right to vote.
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