Transcript History 155 American Business History Lecture 6

History 155
American Business History
Lecture 6
Overview of the Industrial Revolution
Shelley Morrisette
Review of Prior Lectures and Readings:
Whaling Industry
Wealth of Nations
The Business of Slavery
American Mercantilism
Free Trade
Industrial Revolution Images
Objectives for the Lecture:
Why was the Industrial Revolution a Revolution?
It may appear as an evolution, but it impacts the population in
an immediate and revolutionary manner!
GDP Per Capita History
7000
6800
6500
6000
5500
5000
4500
4000
3800
3500
3000
2500
2000
1650
1500
1000
500
0
679
92
92
93
103
103
112
112
113
113
116
116
109
109
138
141
160
190
Source: Brad DeLong
GDP/Per Capita by year
Year
GDP/Per Capita
Year
GDP/Per Capita
-1000000
92
1200
109
-300000
92
1400
109
-25000
93
1500
138
-10000
103
1600
141
-5000
103
1700
160
-2000
112
1800
190
-1000
112
1900
679
0
113
1950
1650
200
113
1975
3800
800
116
2000
6800
1000
116
Source: Brad DeLong
GDP Per/Capita 2014
1.
2.
3.
Qatar
Luxembourg
Singapore
$143,427
$92,049
$82,762
6.
Norway
$66,937
10. United States
$54,597
89. China
$12,010
125. India
$5,327
198. Central African
Republic
$600
Source: WHO
How long does it take to earn an hour of light?
Today:
½ second of work (new bulb)
1950:
8 seconds of work (incandescent)
1880:
15 minutes of work (kerosene lamp)
1800:
6 hours of work (candle)
Source: Matt Ridley
What was the Industrial Revolution?
https://www.youtube.com/watch?v=3Efq-aNBkvc
When did it occur?
https://www.youtube.com/watch?v=JhF_zVrZ3RQ
Industrial Revolution Timeline
1763: Steam Engine
1793: Cotton Gin
1786: Steam Boat
1837: Morse Code/Telegraph
1829: Typewriter
1845: Sewing Machine
What were the outcomes of the I.R.?
Answers
Huge migration of cities
Factory system launched
Mass production of goods
Industrial capitalism
Increased standard of living
Expansion of democracy
Power of ordinary people rises
Increased leisure time
Science and research stimulated
Foreign markets for goods
Why is it important?
Answers
Changed the world – forever!
Industrialization destroyed workers’ independence
Huge investments required to operate large businesses – modern
capitalism
Overproduction
Monopoly power
Unemployment
Mass produced goods were cheaper
Increased standard of living
What was good about the I.R.?
Answers
Country and people became wealthier
Child mortality decreased
Literacy increased
Life expectancy increased
Overall health and wellbeing increased
Workers received more political power
Growing middle class
What was bad about the I.R.?
Answers
Until regulation and laws were enacted, businesses created
many externalities that included:
 Pollution
 Child – labor
 Work death/accidents
 Monopoly profits
 Political influence/corruption
 Workers lost independence
When did it end?
Answers
There is no date certain. Many historians use different dates
for different countries:
England (1760 – 1880)
USA (1800 – 1908)
Many other countries are industrializing now!
 China
 India
 Vietnam
What does it all mean?
Answers
Industrialization is good and bad. With regulation the bad can
be managed.
For industrialization to occur a power source is necessary
Energy and GDP are perfectly correlated
Energy must be – cheap, plentiful, reliable, dense, and scalable
All countries of the world want to industrialize because it
means more “stuff” for their citizens
People want stuff – smartphones, jeans, cars, etc.
Next time
Impact of Industrial Revolution
Communication/Transportation/Production/War
Economics
Politics
Society/Culture/Quality of Life
Backlash of Industrial Revolution
 Romanticism
 Marxism/Socialism
 Luddites
Questions?