The Industrial Revolution

1
The Industrial Revolution

• 1730-1851

2
Scarcity of the Old Regime

• periodic and isolated growth
• assumptions of scarcity
• lack of transportation
• feudal elites concerned with consumption not
  production
• lack of capital stock for productivity
• war, famine, disaster

3
3 Definitions

• substitution of mineral for animal and human
  power
• rising output per capita (person) at declining
  unit cost
• revolution in human control of environment
  (compare Neolithic Revolution)

4
The Classical Economists

• Adam Smith (1723-90)Wealth of Nations
• invisible hand of market (v. mercantilism)
• division of labor
• comparative advantage and free trade
• Thomas Malthus (1766-1834)Essay on Population
• David Ricardo (1772-1823)Iron Law of Wages

5
Prereqs in Britain

• agricultural revolution
• capital from commercial revolution
• credit institutions
• laissez faire (Smith)
• entrepreneurial spirit
• transportation (canals/RRs)

6
The Process

• investment v. consumption
• capital v. consumer goods
• commercial v. technological growth
• self-sustaining growth (take off)
• increasing productivity and competition
• guildscottagefactory
• incremental and takes generations

7
Technological Dynamism

• example of textile industryshuttle, jenny, water
  frame, mule, loom
• mutually reinforcingcoal iron steam RRs
• incremental processrefinement as well as
  insights
• tinkering and theory

8
Impact and Results

• increasing productivity and more consumer goods
• fundamental change in nature of work
• population growth and urbanization
• culture changetime, distance, expectations
• Great Britain v. Ireland
• social, economic, political issues
• working conditions, power, equality