TEMA 3.

- THE INDUSTRIAL REVOLUTION

1.- INTRODUCTION
Between 1780 and 1850 there was a major transformation of goods production systems: The
Industrial Revolution. It started in Great Britain, and the spread to Europe and the U.S.A.

Following the introduction of energy sources, coal and steam, machines gradually started to
replace manual labour.

Industrial capitalism emerged, based on the private ownership of production systems and free
enterprise. This prompted the growth of the bourgeoisie and the formation of the proletariat,
establishing a class society.

Towards the end of the 20th century, the industrialised countries experienced further economic
growth. The introduction of energy sources, electricity and oil led to a second Industrial
Revolution.

2.- THE PROTO-INDUSTRIALIZATION

Throughout the eighteenth century significant economic changes that preceded industrialization
and are known as the "Protoindustrialization" occurred.

Some farmers combined their work in the field with others aimed at the development of
handicrafts in their own homes when they finished the job in the field. This was called "Domestic
system" (home system). It was a system that did not reach high productivity, but allowed the
farmer to sell these products and improve their quality of life.

Later it was established the "Putting out system", in which a trader provided more and better
tools to these farmers for developing a wider range of products that they gave to the dealer in
exchange for a wage.

Finally, the "Factory System" emerged. All those farmers rather than producing at home, they
met at a local (factory) so that all together with machinery and raw materials produce a large
number of products. These factories grew as we will see ahead, and technological innovations
were added into major industries.

3.- THE FIRST INDUSTRIAL REVOLUTION

What we know as First Industrial Revolution, began in England around 1750 and ended around
1850. This revolution was made possible by a series of transformations: the agricultural
revolution, the demographic revolution, technical innovations and business expansion.
3.1.- THE AGRICULTURAL REVOLUTION
Prior to the industrial revolution occur in the English countryside a number of important
transformations. Traditionally the English countryside was cultivated in a communal way (among
all neighbors) in so-called "openfields". All neighboring cultivated land and profits were
distributed equally. But it had several drawbacks: there were owners (nobody invested in
improving the land) could not be planted what you wanted and such cattle roamed freely
through the fields. All this meant that productivity was very low.

The English Parliament, under pressure from the bourgeoisie, enacted the "Enclosure act". This
law established a division and distribution of communal land among the peasants and the
obligation to encircle. Those peasants who did not have money to encircle should sell them, so
the bourgeoisie bought large tracts of land.

Once fenced, agricultural lands passed into private ownership and the new owners are free to
plant and introducing technological innovations they want. Norfolk system is introduced in place
of “Barbecho” (with the Norfolk system all land is cultivated and resources are obtained to feed
livestock). New fertilizers are introduced. Improving the machinery (thresher, seeder and reaper,
mechanical all), livestock were stocked (not to wander through the fields).

As a result of these production increases dramatically, causing a food surplus and improved
feeding people (no longer die so many people by famine) and increase the economic benefits,
which were reinvested in agriculture and industry.

Another consequence is that increasing population and machining field, rural labor surplus and
many farmers leave the countryside and were installed in the cities to work as laborers in
factories.

3.2.- THE DEMOGRAPHIC REVOLUTION

The European population began a process of growth in the mid-eighteenth century. It went from
140 million in 1750 to 280 million in 1850. In some countries like England that growth was
higher.

This growth was due to the high birth rate remained as it descended mortality.

The mortality declined mainly due to improvements in agricultural production, which made
people not starve and be more resistant to disease.

Moreover there were some advances in hygiene and medicine. Important vaccines were
created.

Life expectancy in Europe will increase from 38 years to 55 years. Also significantly improved.

This overpopulation benefited the industrial revolution, and that came a wider consumer market
(more people meant more sales) and there was ample manpower to work in factories.
3.3.- TECHNOLOGICAL INNOVATIONS.
In Britain had been going on for decades much importance to career technical education in
college and that allowed a lot of inventors and innovations.

The first machines were simple at first and used as an energy source human or animal power
(were driven by workers or animals). Gradually these machines will improve and start using
water as an energy source (hydroelectric). Each improvement favored that occurs more and at
lower cost, thereby increasing product demand and profits. With reinvesting those profits are still
growing and innovating.

The great invention was the steam engine invented by James Watt in 1769. The steam engine
consists of a large boiler water heated to high temperatures with coal (existed long in U.K)
generates steam water that moves a piston and therefore a whole machine.

This mechanization and the use of new energy sources (coal) promoted the generalization of
the factory system (concentrating workers and machines in large industrial buildings: the
factories). Unlike the artisan system in which the craftsman is responsible for all steps of the
production system in the factories there is what is called expertise and division of labor (each
worker is responsible for performing a small part of the production in order to achieve reduced
manufacturing time).

3.4.- PIONEERS INDUSTRIES: TEXTILE AND STEEL

3.4.1.- TEXTILE INDUSTRY
The English textile industry was the first sector in which technical improvements discussed
above were applied. Why? First, the population has grown and the first thing he will demand will
be textiles; Moreover England where acquire numerous colonies had cotton and other tissues in
large amounts and cheap.

In the manufacturing process of a textile involves two processes: spinning and weaving. The
machines introduced improved these two processes and reduced turnaround times.

Among the improvements made to both find:

 WEAVING:
 In 1733, Kay invented the Shuttle Wheel.
 In 1785, Cartwright invented the Mechanical Loom.
 SPINNING:
 In 1765, Hargreaves created the Spinning Jenny
 In 1767, Arkwright created the Water Frame.
 In 1779, Crompton created the Mule Jenny.
3.4.2.- STEEL INDUSTRY
Another of the first sectors to industrialize was the steel. The ironworks were installed near the
mining centers because it required lots of coal (coal and coke). Iron and steel for the
construction of new tools, new machines and above the railroad was needed. When
construction begins large-scale railroad, the steel industry will be greatly favored.

Some of the most important innovations were:

 Puddle Technic for Iron: Invented by Henry Cort. It Cleaned the impurities in the iron.
 Bessemer Converter: Invented by Bessemer. It transformed the iron in Steel.

3.5.- REVOLUTION OF TRANSPORT

3.5.1.- THE RAILWAY AND STEAMBOAT
A basic requirement for the industrial revolution is to have a good communication network to
deliver raw materials to factories and products to consumers quickly and cheaply.

The English situation was exceptional in that it is a country with a favorable relief (no large
mountainous terrain) which created a good network of paved roads. Besides the high rainfall on
the island made their rivers were navigable.

But the most important revolution came with the railroad. At first rail wagons were used to
transport the coal extracted from the mines. But everything changed when Stephenson joined
the steam engine locomotive, which could connect cities and industrial centers and trade grew
enormously, and of course cheapened prices. The first line was built passenger joined the cities
of Liverpool and Manchester in 1830. From there, England built an extensive rail network.

Subsequently the steam was applied to boats. It was previously sailed with sailboats. Now the
steamboat, built in iron and moved with shovels will be generalized. These systems were slowly
improving.

3.5.2.- THE INCREASE OF TRADE

The Industrial Revolution led to a market economy, that is no longer produced for own
consumption, but surplus sold in the domestic and foreign markets were generated. This trade
increased by improving the purchasing power of the population, population growth, increased
production and improved transport.

They also began to extend economic ideologies such as free trade. This theory argues that
there should be free trade between countries to achieve economic growth. However, countries
begin to use protectionism, which meant charge fees (taxes) to those countries wishing to
import products
4.- THE INDUSTRIAL CAPITALISM
The industrial revolution boost a new economic system: "Capitalism". Capitalism is based on an
economic ideology: economic liberalism.

4.1.- ECONOMIC LIBERALISM

Economic liberalism is an ideology espoused by Adam Smith in his book "The Wealth of
Nations". In this work, Adam Smith established the principles of economic liberalism:

 Self-interest and the pursuit of maximum profit is the engine of the economy. "The sum of
individual selfishness leads to the public good".
 The state should refrain from intervening in the economy. This was called the "Laissez-
Faire" (leaving do, in French), which was saying that the state should let companies
compete freely and from trading freely with other countries. The state should only be a
referee ensuring that laws were met. "An invisible hand regulates the functioning of the
market economy"
 The market is balanced thanks to the law of supply and demand. The law of supply and
demand serves to regulate the amount of goods on the market and set your price. The law of
supply and demand has 3 features:
o When there is more supply than demand for products, prices tend to fall.
o When prices drop, demand increases.
o When there is more demand than supply of products, prices tend to rise again.
o And so a vicious cycle that regulates the economy and supposedly should balance
the supply and demand for it was the same and the prices would be established on
this basis is formed.
 The supply and demand also regulates the wages of workers. If there are more supply of
workers for a position, the salary will be less. If there are less supply of workers for a job,
wages will be lower (why a person with a university education or has a special gift-for
example football players- charged more money than someone who does not have much
training in a job that could do either).

4.2.- BANKS AND FINANCES

The industrial revolution and the creation of businesses or technical innovations require much
capital (money). Entrepreneurs do not have much money to start a business or buy new
equipment, so they had to resort to banks to get that funding.

Thus, the bank becomes a cornerstone in the new capitalist system. On the one hand, savers
deposited their money in banks in exchange for banks would keep interest and is offered to you
(benefits). Meanwhile businesses that require money, demanded money loans to banks; these
loans should be returned along with some interest (extra money for having left the money).

Sometimes, it was necessary so much money that the bank couldn’t lend you or the employer
didn’t want to ask for them to the bank (to avoid having to pay interest)
Corporations are born then: in which the capital provided comes from many people. This capital
is divided into shares and each person have a number of shares as they had contributed. If the
company went well, your actions were worth more money; if it was wrong, shares lost value. At
any time you could sell your shares on the stock exchange and the shares will be acquired by
any other person.

5.- THE SECOND INDUSTRIAL REVOLUTION

Following the first phase of the industrial revolution, which lasted from 1750-1850 and affected
mainly to England and then spread throughout Northern Europe, USA and Japan. It will be
given a second Industrial Revolution, which will last from 1870-1914, when starting the First
World War, in which Britain will lose its leadership for USA and will extend over wide areas of
the planet. We call II Industrial Revolution, due to a series of changes in all sectors of the
industry succeed.

5.1.- NEW ENERGY SOURCES: ELECTRICITY AND OIL

As we saw during the first industrial revolution, the main source of energy was coal, which
produced steam that moves steam engines. It is now replaced by the oil and electricity

THE OIL: Charged particular importance with the discovery of combustion engines (Benz) and
explosion (Diesel). These two engines used derivatives of gasoline (Petrol, Diesel and
Kerosene) to operate especially cars (Henry Ford will be the driving force in the automotive
world in the early nineteenth century). Since then oil has been an irreplaceable source of
energy.

ELECTRICITY: The electricity had been known since antiquity, but was not known to produce
industrially. There were several inventions that enabled the development of electricity. Volta
invented the battery in 1800. Gramme the dynamo in 1872 (the dynamo allowed to produce
electricity), Edison the light bulb in 1879, in 1882 Edison also launch the first power station. The
electricity was applied to other inventions like the telegraph, telephone (Graham Bell in 1876),
radio (Marconi in 1895) or transport (metro and tram). He also served for lighting homes and
cities.

5.2.- NEW SECTORS OF PRODUCTION

Along with the textile and steel industries emerged new sectors or industries that become
pointers:

 CHEMICAL INDUSTRY: dyes, explosives (dynamite to mine), fertilizers, medicines, cleaning

products, artificial fibers (nylons or neoprene) and rubber (for wheels for example) were
manufactured.
 NEW STEEL: new metals such as nickel, stainless steel or aluminum were created. Along
with iron and steel were very important for the development of railways or navigation, or new
sectors such as automotive, industrial war or skyscrapers.
 THE FOOD INDUSTRY: Cans of food or industrial refrigerators, which improved food
preservation for long-distance trade was made

5.3 NEW FORMS OF INDUSTRIAL ORGANIZATION

The Second Industrial Revolution with new innovations, made changes in production systems
and working to make them more productive and profitable. Thus arose especially two new forms
of industrial organization: Taylorism and Fordism.

THE TAYLORISM

The idea came from an engineer, Taylor. He divided the work into small tasks (as this, every
worker should be dedicated to a single part of the production), whose duration is clocked exactly
to avoid wasting time. With these measures would reduce the time and therefore production
costs.

THE FORDISM

It was employed by Henry Ford in his automobile company. The cars would be produced in
series and to do the assembly, in which the pieces passed from one worker to another and
reduced the time and cost of production greatly.

5.4 NEW FORMS OF CONCENTRATION OF CAPITAL

The new production techniques and innovations were created by companies to try to reduce
competition. This provoked new ways of raising capital, companies merged, the most powerful
absorbed weaker and was intended to control the various branches of production. They
highlighted three formulas of concentration:

 The Cartel: Agreement between companies to fix prices, production quotas and thus share
the market (today we can see this at the petrol stations)
 The Trust: Grouping of companies to cover all stages of the production of an article to
dominate the market and eliminate competition. (Imagine several computer companies
dedicated to one thing each -disc drive, graphics card, displays, keyboards, etc. come
together to not have to buy anything to another company)
 The Holding: Corporation of companies in the same sector, controlled by a single company
that owns most of its shares ( the Inditex group has companies like Zara, Pull & Bear,
Massimo Dutti, etc, all are engaged the textile sector but they are the same company).

6.- THE NEW INDUSTRIAL SOCIETY

Before the Industrial Revolution, society was divided into classes, privileged and unprivileged
and accessed it by birth. With the industrial revolution class society (Upper Class, Middle Class
and Class Lower) emerged. In class society social differences were not established by birth, but
by wealth. Supposedly anyone can reach the high class with their work, effort and intelligence.
Also assumed that all social groups were legally equal and have the same rights and freedoms.
It basically divided into the following groups:

THE OLD NOBILITY

The old nobility lost much of its political and economic influence with the liberal and industrial
revolutions. They had removed their privileges and they were forced to pay taxes. Most of the
nobility had no entrepreneurship and economic power remained grounded in land ownership.
Some of them began to marry with bourgeois and started businesses (many bourgeois got
peerages). However, long continued flaunting key positions in the administration, diplomacy
(ambassadors and consuls), in the military or in politics.

BOURGEOISIE

The bourgeoisie was the class that after the political and industrial revolutions won the political
and economic power. They were the owners of industry, business and trade, also sported the
main political office. However, representing a heterogeneous group. There was a HIGH
bourgeoisie (controlled large factories, were large landowners and big bankers). There was also
a middle bourgeoisie (composed of highly qualified independent professionals such as lawyers,
university professors, architects, doctors, etc.). And finally the little bourgeoisie (small
shopkeepers, artisans, officials, etc.).

Today the term bourgeoisie is used to designate the economically wealthier classes.

THE PROLETARIAT

The term proletariat is identified with the working class factories. They lived in cities, in class
neighborhoods nearby industries. They sold their labor for wages. Suffered harsh working
conditions (12 or 14 hours, child labor, no holidays or days, low wages, unsafe or hygienic
conditions at work, no unemployment, no retirement, no health insurance). The workers' districts
likewise lacked hygienic conditions (no electricity, no clean water, dirt roads, no sewers, etc.), all
this made multiple diseases arise.

THE PEASANTRY

The peasants were still the majority of the population and were anchored in its traditions, its
immobility, its strong religious and political rejection of new ideas.

With the end of feudal privileges, farmers stopped relying on their masters and became
laborers, whose working conditions were similar to those of the proletariat (working long hours
for low pay and no rights). There were small peasant landowners, whose situation was
somewhat better than the laborers.
7.-THE LABOR MOVEMENT
The industrial revolution and capitalism brought as a consequence that the bourgeoisie tried to
get the maximum benefit at the cost of imposing the workers living conditions, pay and working
very hard.

The labor movement was the set of initiatives undertaken by the workers to try to improve those
conditions. They first emerged in England and in most industrialized countries. In the twentieth
century political parties emerge working ideology.

7.1 EARLY LABOR MOVEMENT

Some of the initiatives undertaken by the workers were:

 The Luddite: It was a movement started spontaneously in England and was based on
destroying machines as the workers blamed his bad situation. This movement was severely
repressed by governments.
 Chartism: This was a movement political. Its name comes from "The letter of the people"
that the workers sent to the British parliament demanding universal suffrage and
improvements. The movement also failed.
 Friendly Societies: The workers were gradually becoming aware that they belonged to the
same class and should help each other. Thus were born these mutual aid societies that
relied on deposit part of the salary to help each including if ever any member was
unemployed or sick.
 Trade Unions: At first workers' associations were outlawed, but in 1825 were allowed in
England. Thus arose the first unions by branches of production (for example union spinners).
In 1834 the "Great Trade Unions," a labor union formed by workers in different trades arose.
The goal of unions was to improve the situation of the workers, their first demands were
aimed at an improvement in wages, reduced working hours and regulation of child labor.

7.2 THE WORKERS IDEOLOGIES: MARXISM, SOCIALISM AND ANARCHISM

MARXISM

Marxist thought was theorized by Marx and Engels. Denounced the exploitation of the working
class and defended the workers revolution to destroy capitalism.
By a workers' revolution, the proletariat conquer power and create a dictatorship of the
proletariat. Private property will be eliminated and socialize everything (everything is for
everybody). Disappear class society and communist society would be born (no classes and no
difference). Everyone would work for the state, with the same conditions and the same wages
(as that, so would all be equal).
SOCIALISM

Broadly speaking we could say that the socialists seek to create political parties and through
elections introduced in parliament and thus promote a more favorable legislation for workers (8-
hour day, progressive taxation, universal suffrage, end child labor, social security, vacation pay,
pensions, etc).

ANARCHISM

The term anarchism comes from a Greek word meaning "without authority and without power."
Its main thinkers were Bakunin, Kropotkin and Proudhon Like communism criticized capitalism
and sought to destroy, but with different methods.
Anarchism has several features:
 Do not believe in any kind of authority (state), but advocated individual freedom.
 Reject the political game, do not believe in political parties or elections or in parliaments.
Your way to achieve power would be a spontaneous general strike working.
 The social organization must be structured from below: From small self-sufficient
communities by universal suffrage would decide everything.
 No private property exist, everything would be collectivized (everything belongs to everyone
and everyone would work for everyone)
 They gave great importance to education, only with education, man is free.