Industrial Revolution

Industrial Revolution

It was the transition to new manufacturing processes in 18th and 19th century.It completely changed the economy and societyThe agricultural revolutionThe main reasons for agricultural revolution was the transition from the open field system to the closed field systemOpen field system: Peasants had strips of land in each field Everyone grew the same crops Animals grazed in the same lands Close field system: Each person had a single piece of land They could grow whatever crops they wanted The lands could be brought or sold Poorer farmers sold their land and became wage labourers

Consequences of EnclosureClosed field system increased productivity and farmers started investing more in improving their land.As a result of higher producivity, fewer people needed to work in agriculture.They created space labourers

Background to the Industrial Revolution

Before the Industrial Revolution, almost all goods were made by hand by artisans. They were very skilled but they only could do a small number of products

In the 17th century, the system of manufacturing started to change.Clothes were made by domestic system (merchants paid people to make products in their own homes)

CHANGES IN 18th CENTURY BRITAINThe first half of this century was a time of innovation and investment: The scientific revolution and Enlightenment led to scientific advances and new ideas The domestic system created merchants Growing trade -> Britisch merchants had money to invest Patents ( a government licence that gives an inventor the exclusive right to use or sell his or her invention) In Britain: There were spare labourers They created demand for more goods because population grew The British Empire provided raw materials

The start of the Industrial Revolution

THE INVENTION OF THE STEAM ENGINEFirst, British people used wood for heating but in the 18th century there were few forests left so they started to use coal instead. The demand of coal started to grow also so they needed to dig deeper mines.How the Newcomen engine was used in mines: Coal was burtned to produce steam, which pushed up the piston This moved the beam, which produced an up and down motion to pump the water

STEAM-POWERED MACHINES IN FACTORIESIn 1788 James Watt had greatly improved the esteam engine:he increased its efficiencyhe made it turn a wheel rather than provide up and down motionEarly machines were powered by humans, horses or water but thanks to Watt they could used steam engines instead.Machines became much bigger and more powerful.And this is considered the true start fo the Industrial RevolutionThese machines were used to manufacture metal parts for other machines

A revolution in transport

British factories made much more goods than before so they could supply more all over the world but they needed to transport them safely and quickly.All of it led to a revolution in trasnportThe first improvements were to roads (tools: to pay road maintenance), this made road travel quicker.The owners of coal mines and factories bulit canals.Horses coul pul much heavier loads

STEAMSHIPS AND STEAM TRAINSSteam enfines became smaller and more powerful The firs steamship was used on a canal in Scotland in 1803 The first steam train was used at an ironworks in wales in 1804 In 1830 the Liverpool and Manchester Railway became the firs passenger railway to use steam engines Steam trains made it much quicker and easier to transport goods and peopleTrains helped to transform the economy and society

Industrialisation of Europe and the United States

New manufacturing processes spread to other countries, this process is known as industrialisation The French Revolution and Napoleonic Wars created political instability Taxes and duties restricted trade between European regions and countries After the Congress of Vienna -> European countries hd absolute monarchies, and middle-class merchants and business owners had little political influence Bristish industrialists tried to keep their innovations secret The first regions to industrialise were Europe and United StatesNew factories and mines wer often established by Britishcapital and by importing British engineers and skilled workersIn the second half of the 19th century the expansion of the railways greatly accelerated the industrialisation

Liberal economics and banking

The changes brought about by the Industrial Revolution led to the development of new economic theoriesIn the 18th century European believed in mercantilismIn The Wealth of Nations, Adam Smith proposed a new theory: a nation's wealth is all of the goods that it producesAccording to Smith, the best way to increase wealt is to encourage free enterprise: to allow people to spend and invest their money however they like, with as little goverment interference as possible All businesspeople have a selfish desire to make a profit Trade is good for both buyers and sellers Competition helps to keep prices low He was the first people to recommend the division of labour. Adam's ideas had a big influence on modern capitalims and he is considered the father of liberal economics

JOIN STOCK COMPANIESIn a join stock companies, the company's capital is divided into shores. The investors share the risks and profits from the company' investmentsTrading with America and Asia was very profitable but you could also lose your whole investment if a vessel snk or was attacked by piratesDuring the Industrial Revolution, Railways and canals were often built by joint stock companies

BANKINGAs trade grew during the 18th century, banks became increasingly important. They provided: They acted as intermediaries between savers and borrowers: they accepted deposits from savers, and led money to companies They helped governments to borrow money They made ir much easier for their clients to move money from one place to another. If a person had money deposited at a bank, he could ask for a bill of exchanged