Period of profound economic and social
changes, caused by the increasing use of
machinery in production.
Agrarian societies gradually
changed into industrial ones.
All changes began in Britain
(2nd half of 18th century)
Two stages:
1st Industrial Revolution (started 1760)
2nd Industrial Revolution
(started 1870)
DEMOGRAPHIC REVOLUTIONS
English population started to
grow in the late 18th century
Death rate decreased and birth
rate remained high.
This decrease was caused by
several reasons
Improvements in nutrition and advances in
agriculture and diets.
Personal and public hygiene improved, with
cleaner people, streets and water.
Advances in public health, such as the vaccine against
smallpox, and the construction of new hospitals.
All of the new advances caused fewer deaths by epidemics.
More demand for agricultural
and insdustrial products.
More jobs appeared.
AGRICULTURAL REVOLUTION
Innovations in agriculture and livestock
due to increased demand for food.
Farming techniques
Four-field system of crop rotation
replaced the three-field system.
Manure, a natural
fertiliser, increased due to
better fed livestock.
Iron plough replaced the wood
plough (late 18th century)
New farming
techniques introduced.
Land ownership and use
Land became private property
Livestock farming
Part of the land was used to grow fodder (food
for livestock), so livestock increased.
Primary sector production
increased
More income for farmers, who
started to be able to save
money.
OTHER FACTORS
AFFECTING ECONOMIC
GROWTH
Extensive markets
British domestic
market had good
infrastructures
and no domestic
tariffs.
Products sold in many foreign colonies
Trade made a lot of profit, which was invested in new
industries.
New mentality
Bourgeoisie was
more open to
investment,
business risk and
pursuit of profit.
Abundance of
iron and coal
Necessary to
build and
run new
factories.
THE FIRST INDUSTRIAL
REVOLUTION
FROM WORKSHOP TO
FACTORY
Until the 18th century, most
products were made in workshops.
In late 18th century, new machinery was invented,
which manufactured products more quickly.
Factories replaced workshops.
First machines
were powered by
hydraulic energy
Then, steam engine
invented
(steam-powered)
Division of labour
established, which
increased production and
productivity
THE TEXTILE
INDUSTRY
A lot of cotton grown in
Britain, which made their
textile industry have a cheap
and abundant raw material.
Textile industry was the
first to introduce
technical innovations in
spinnign and weaving.
British textile industry
expanded with the
introduction of
steam-powered machines.
Cotton British
products were
sold
internationally.
The textile boom
also increased
activity in other
sectors
THE IRON
INDUSTRY
Until 18th century,
most iron in Britain was
imported from Sweden.
After 1709, Abraham Darby
invented the blast furnace to
smelt iron using
coal-derived products.
Henry Cort invented a
new furnace in late 18th
century, able to make
lots of wrought iron.
More demand for
machines and tools due
to more iron
manufacturing.
ECONOMIC
LIBERALISM
Liberalism spread greatly
during the 1st stages of the
Industrial Revolution.
Adam Smith thought economic
activities should be governed by
principles of economic freedom
(in which ''freedom'' meant freedom
to create companies, hire
workers...)
He thought of guilds as
obstacles and believed the
state shouldn't intervene
in economy.
He said this because of
how prices and salaries are
regulated by the Law of
supply and demand.
He defended
division of labour, as
it increased
production and
productivity.
THE TRANSPORT
REVOLUTION
ADVANCES IN NAVIGATION
Fast and safe transport
was needed because of
the growth of industrial
production in Britain.
Before the 18th
century, road travel
was slow, dangerous
and uncomfortable;
after 1750, new roads
built and old ones
repaired.
River travel was still
cheaper, so many canals
were constructed.
Steam engine was soon used in
navigation, and in 1807 the first
line of commercial steamboats
appeared.
Only used for river travel at
first, then became more used
in the sea.
THE RAILWAY AGE
Railway was possible
due to 2 advances
Iron, used to
build trains
and railways.
Steam engine,
used to power
locomotives.
First
steam-powered
locomotive built,
followed by the
appearance of the
first cargo railway
and the opening of
the first public
transport railway.
Railway transported products to
their markets safely and fastly.
Railways were built all over the world, even
intercontinentally.
IMPACT OF THE
TRANSPORT
REVOLUTION
TRADE
Transport times and
costs reduced.
It was also
easier for
people to
travel.
SPECIALISATION IN
WORLD ECONOMY
Industrialised
countries specialised
in manufacturing and
exporting.
Colonies
provided them
with raw
materials.
MINING, METALLURGY
AND IRON INDUSTRY
They provided raw materials for the
construction of means of transport, so the
industries strenghtened.
DAILY LIFE
Nutrition improved.
Easier to emigrate to distant
places.
THE SECOND INDUSTRIAL
REVOLUTION
NEW ENERGY SOURCES AND
INDUSTRIES
2 new energy sources
ELECTRICITY
Used to power machines, trains,
railways or forms of
communication.
PETROLEUM
First oil was drilled in 1859
It became more
important because of the
invention of combustion
engine.
Some industries grew in importance
IRON AND STEEL
INDUSTRY
It expanded after the
invention of Bessemer
converter
This produced large amounts
of steel at a low price.
CHEMICAL
INDUSTRY
Raw materials
were used to
make new
products.
ELECTRICAL
INDUSTRY
Electricity was
produced and
distributed at a
large scale.
USA and Germany continued being being the
leading industrial powers.
LARGE COMPANIES AND BANKING
When the Industrial
Revolution began, small
and single-owner
companies were common.
Family businesses didn't have enough
money to hire workers or buy machinery.
Corporations were created.
In them, the capital was divided into shares,
which were traded on the stock market.
Whoever bought them participated in the
business as a shareholder.
Banks became important institutions,
due to them lending money to
companies or being intermediaries
between companies and private
individuals.
Individuals saved
money on banks, which
invested in on
industries or businesses.
Financial capitalism was born.
NEW SYSTEMS OF
PRODUCTION
In the late 19th
century
TAYLORISM
F. Taylor invented a production process
divided into small and timed tasks.
Each worker specialised in one task, and
was paid accordingly to it.
ASSEMBLY LINE
Used by Henry Ford on his automobile factory.
Produced pased form one worker
to another.
MASS PRODUCTION
Assembly line use prepared the way for mass
production.
Many parts of the product
were manufactured, then
everything was put
together.
Lots of good made, production
costs reduced.
Different types of corporate groups
emerged.
CARTEL
Association between companies in the
same line of business.
They did agreements to control production
and distribution, and to set prices.
HOLDING COMPANY
Controls other companies because of
owning most of their shares.
TRUST
Association of companies, which covered all stages in
manufacturing together.
Their goal was
to control the
market and to
eliminate
competititon.
Government sometimes regulated cartels and trusts if they created unfair monopolies.