Economic Liberalism, Chartism, and Industrial Revolutions

Economic Liberalism and Chartism

Economic liberalism is a doctrine that proposes favorable development through the free market and minimal state intervention in economic affairs. Proponents wanted the recognition of private property and individual profit.

Chartism was a movement that petitioned Parliament, demanding political reforms, universal manhood suffrage, laws to protect workers' interests, and salaries for Members of Parliament (MPs). It was active from 1838 to 1848.

Population Growth and the Industrial Revolution

Population growth encouraged agricultural and industrial development because there was an increased demand for food and manufactured products. The Agricultural Revolution enabled population growth and industrial development because it made possible the production of enough food for the growing population. Increased trade encouraged industrial development because the profits from trade were invested in industry. Technological progress meant that products could be produced more quickly and in greater quantities, and therefore, products were cheaper.

Estate System vs. Class-Based Society

The estate system was determined by closed groups, and an individual's social group could not change because it depended on their family background. However, in a class-based society, everyone can change their social group because it depends on wealth and occupation.

The proletariat worked in factories; their wages were usually very low, and they didn't own the property of the industry. In contrast, the industrial bourgeoisie had large profits and were the owners of factories.

Marxist Theory

Marx and Engels proposed that the workers would become the owners of the means of production, not as individuals, but rather as members of the society they all belonged to. Key concepts include class struggle, the dictatorship of the working class, and a communist economy and society.

The Second Industrial Revolution (1870-1914)

The Second Industrial Revolution took place from 1870 to 1914. It was characterized by rapid industrialization due to an increase in the importance of the financial sector in industry and the rise of finance capitalism.

Innovations and Changes

• New Sources of Finance:
  • Joint-stock companies
  • Banks
  • The Stock Exchange
• New Business Structures:
  • Cartels
  • Trusts
  • Holding companies
• New Technological Advances:
  • Improvement of the Bessemer process
  • Dynamite, stainless steel, and artificial fibers
• New Sources of Energy:
  • Electricity
  • Oil
• New Industries