What was one effect of the Industrial Revolution?

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The Impact of the Industrial Revolution
Financing and Banking

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The change from hand production methods to machines to increase productivity

The Industrial Revolution started around 1760 and ended between 1820 and 1840. It originally began in Europe and slowly shifted over to the United States in the early 1800s. The latter half of the 18th century saw massive changes in the production of goods. Manufacturers were turning away from hand production methods towards machines to increase productivity.

The era saw new changes in chemical manufacturing, iron production, textile production, as well as across many other industries. The rapid development of steam power and water power were two of the core driving factors of the industrial revolution. It was a turning point in human history, changing how products were produced and the overall standard of living for a vast majority of the population.

The first industrial revolution in the 18th century should not be confused with a subsequent industrialization period, which occurred later in the 19th and 20th centuries and saw changes in metal (specifically, steel), electric, and automobile production.

The original industrial revolution began in England with the British textiles business and spread across other parts of Europe. Thousands of miles of canals and roads sprung up across Britain to assist the growth of the revolution. Also, steam-powered trains, both freight and passenger, became much more popular and helped transport goods across Europe.

The industrial revolution focused on economies of scale and turning to mass production of products. Economies of scale bring fixed and variable cost advantages to increases in production and technological advances.

The Impact of the Industrial Revolution

The Industrial Revolution caused an everlasting impact on society and the living standards that we are familiar with today. It would be challenging to find many aspects of life that were not altered by the first industrialization period on the economy, production, and people.

Employment opportunities and wages increased across various sectors. Factories began to be a more appealing job, given the potential increase in income and benefits. It also increased the demand for housing in cities, subsequently improving the overall city layout, planning, and education systems. Due to increased education and the need for more advanced technologies, new inventions skyrocketed. Such a mindset ultimately continued to accelerate the revolution and all of its beneficiaries.

Gross domestic product (GDP) per capita began to grow with the industrial revolution, alongside the development of the modern capitalist economy. It was the beginning of consistent GDP growth for the next century. Countries that capitalized on industrialization started to rely less on imports and became more self-sufficient.

However, there were also some downsides to the industrial revolution. As a result of the extremely rapid changes in production, cities and governments saw new problems arise. Inner-city pollution saw an abrupt rise from factories and increased population as more workers moved to the cities. Living conditions in some places plummeted; sewage and waste flooded the streets and rivers.

Additionally, working conditions in factories decreased as companies tried to cut costs and become more profitable to stay ahead of their competitors. Child labor and employee health issues arose. The governments ended up implementing labor, pollution, and other regulations to ensure the safety of its people and the economy.

Financing and Banking

During the Industrial Revolution, banks saw greater importance in financing, specifically geared towards industrial financing. The growth demanded more capital from entrepreneurs and current business owners. Although technology costs were decreasing, the overall demand for infrastructure funding was on the rise.

Financing came from several sources; merchants, aristocrats, and wealthy families were all key contributors at the start. With the ever-increasing demand, general and specialist banks became more common and would provide long-term loans to these entrepreneurs in the revolution.

Summary

The Industrial Revolution, also known as the First Industrial Revolution, changed the way companies operated and resulted in an everlasting impact on the societies we see today. It stretched across the 1700s to 1800s.

Through economies of scale, businesses streamlined their processes and created more products at reduced costs. It increased employment opportunities and the wages associated with them. Workers flocked to cities to find work at the factories being set up, which, in the beginning, often paid more than farming.

Cities saw changes in their planning to adjust for the mass influx of people and to keep living conditions acceptable. Governments put in regulations to keep factory workers safe and reduce the exponential increase in pollution that the era saw.

The change also saw entrepreneurs and current businesses in more need of capital. Banks developed to be able to supply the necessary capital for these high-growth areas.

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The Industrial Revolution is one of the most significant events in human history and had a profound effect on many nations throughout the world. While the Industrial Revolution first began in Britain in the 18th century, and took place throughout the centuries that followed, its impacts can still be seen in our lives today. For example, the Industrial Revolution led to many of the following: the growth of socialist movements and labor movements, feminist movements, urbanization, and our modern consumer society.

One of the primary causes of the Industrial Revolution was the emergence of laissez-faire capitalism as an economic system. Laissez-faire capitalism is a highly individualistic ideology in which the government plays as little a role as possible in the economic decisions of a country. Historians often refer to the ideology of the Industrial Revolution as classical liberalism since it included the principles of laissez-faire capitalism while also promoting basic individual rights. This political and economic climate created a situation in which wealthy factory and mine owners were able to exploit working-class people. As a result, this led to horrible working conditions for the people of the Industrial Revolution. For example, child labor was a common feature of the Industrial Revolution with children as young as four working in dirty and dangerous conditions without protection from the government. As time passed, socialist ideologies emerged in response to this exploitation. Several prominent socialist ideologies that emerged at the time included: Marxism and utopia socialism. Marxism is best associated with Karl Marx and the system of ideas he established in his books ‘The Communist Manifesto’ and ‘Das Kapital’. In each book, he argues against the exploitation of the working-class and for a more equitable society in which there are no class divisions. Utopian socialism is best associated with Robert Owen, who owned a factory in New Lanark, Scotland, during the time period of the Industrial Revolution. He operated the profitable business while also treating his workers well. For example, he provided basic education and healthcare to his workers while also paying them a decent wage. He proved it was possible for wealthy owners to still make a healthy profit while sharing their wealth with their workers. The growth of these socialist movements was significant because of the impact they had on the world in the decades and centuries that followed. For example, throughout the 20th century socialist ideologies transformed classical liberal societies and laissez-faire capitalism to a more mixed economy based upon the principles of the welfare state and modern liberalism. As such, most modern democracies include elements from both sides of the economic spectrum.

Karl Marx

Robert Owen

Child Labor in the Industrial Revolution

Another feature of the Industrial Revolution that has left an impact on the world was the emergence and growth of labor unions. A labor union is a group of people within a particular job or industry that join together to fight for improved working conditions. During the time period of the Industrial Revolution, working-class people were often exploited by wealthy owners. As stated in the previous paragraph, the dominant ideology of the Industrial Revolution centered on individualistic values such as classical liberalism and laissez-faire capitalism. As such, there were very few government regulations in place to protect workers. Out of this emerged different socialist movements that focused on improving the lives and conditions for industrial workers. At the same time, the idea of labor unions became popular across industrial societies. Workers formed and used unions in order to protest for a variety of things, including: shorter hours of work, higher rates of pay, safe working conditions, basic education and healthcare. Today, labor unions remain an important part of many modern democratic societies. They continue to fight for the same things that workers did in the Industrial Revolution, and have played a vital role in improving life for workers.

The third impact of the Industrial Revolution was the establishment of early feminist movements and the role of the revolution on women. The Industrial Revolution had a profound impact on the lives of women. Before the advent of industrialization women were often tasked with traditional jobs such as making and repairing clothing. However, since the textile industry benefitted greatly from the numerous inventions that were created during the time period, clothing shifted from a traditional role of women to a mass produced good in factories. As a result of their shifting role, women entered the workforce in textile mills and coal mines in large numbers. Women were not valued the same as men in the workplace, and were therefore often paid much less than men. For example, while male British industrial workers were often paid 10 shillings per week, women were paid half that. At the same time, socialist values were emerging in the Industrial Revolution, as workers began to protest and fight for more equal rights. The early feminist movements also emerged out of this time period, as women began to organize and protest for more equality in society. One of the first things that women began to fight for was the right to vote. Throughout the 1800s, women were denied the right to vote, but this changed in most industrial societies in the early 1900s, as the governments began to extend rights to women. Today, the feminist movement continues as women fight for equal pay, maternity rights and more.

Women in the Industrial Revolution

Another impact of the Industrial Revolution was its contribution to urbanization. The Industrial Revolution first began in Britain in the 18th century due in part to an increase in food production, which was the key outcome of the Agricultural Revolution. As such, the Agricultural Revolution is considered to have begun in the 17th century and continued throughout the centuries that followed, alongside the Industrial Revolution. Through different measures, such as the Enclosure Movement, many farmers and their families were forced from their land and moved to more populated centers in search of work. As a result, industrial cities and towns grew dramatically due to the migration of farmers and their families who were looking for work in the newly developed factories and mines. For example, in 1750 nearly 80% of the population in Britain lived on farms, but by 1850 that number was cut to just 50%. Along with the mass migration of people, Britain also experienced a rather large population boom in the early years of the Industrial Revolution. The increased food production of the Agricultural Revolution led to this increase, and allowed British families to expand. For example, in 1700 the total population of Britain was around 5.5 million people, but it soon expanded. Just 100 years later the population had increased to over 9 million and by 1840 it was nearly 16 million. Due to the increased population and the poverty of most working-class families, it was common for large families to live in relatively small rooms. This population increase combined with the mass migration of people greatly impacted the living conditions for people in the industrial towns and cities. Urbanization was one of the key features of the Industrial Revolution and continues still today. For example, the United Nations reported in 2009 that for the first time in history there were more people living in urban areas than rural areas. The trend continues still.

Richard Arkwright

Eli Whitney

One of the final impacts of the Industrial Revolution was the numerous inventions and innovations from that time period, which still impact our world today. The modern consumer lifestyles of people in most Western democracies would not be possible without the advances made in the Industrial Revolution. For example, the textile industry benefited greatly from several important inventions. The textile industry was based on the development of cloth and clothing. Before the start of the Industrial Revolution, which began in the 1700s, the production of goods was done on a very small scale. Historians refer to this method of production as the ‘cottage industry’. Simply put, the cottage industry refers to a period of time in which goods for sale were produced on a very small scale, usually in a home. In this system, people produced goods, such as wool, in their homes or on their own farms and then sold it to local communities since long distance transportation was uncommon. In contrast, industrialization allowed goods to be produced in a central location and on a mass scale. It also led to the creation of inventions that helped speed up the production method of many goods, but most noticeably in the textile industry. Throughout the 1700s, inventors such as Richard Arkwright, Eli Whitney, James Hargreaves, John Kay and Edmund Cartwright, developed machines and techniques that helped improve production, especially in terms of the textile industry. They allowed quick and efficient mass production which is a key feature of modern systems of production and trade. As well, other key inventions, such as the telephone, steam engine, and automobile have transformed our modern lives. Without these inventions, our society would lack the current convenience and efficiency that we enjoy.

In conclusion, there were several important impacts that emerged from the major events of the Industrial Revolution. For example, the growth of socialist movements and labor unions led to increased rights for working-class people, which has left a legacy of rights enjoyed by modern people. For example, these movements helped establish basic rights such as child labor laws and minimum wage laws. Next, the economic opportunities created by the Industrial Revolution allowed entrepreneurs and inventors to take risks and establish businesses. This process helped create a strong middle class, since the benefits were no longer exclusively held by the wealthy. Finally, the rights movements of the workers in the Industrial Revolution extended to other groups, including women, who protest and won the right to vote in the early 20th century.