Economic Liberalism and Urbanization in the 18th Century

The First Industrial Revolution

The First Industrial Revolution consisted of a set of changes that turned a deep, exclusively agricultural and trade-based economy into an industrialized economy through the application of new machinery. This process began in Britain around 1760 and later spread to other European countries.

Key Causes and Factors

• The Agricultural Revolution: Increasing agricultural yields through the application of new techniques and the use of new tools.
• Population Growth: Decreased mortality due to improved feeding and hygiene.
• Expansion of Trade and Transport: The development of a trade surplus produced economic expansion, which helped finance the industry.

The First Major Industries

• Textile: Technical innovations and the new organization of work produced the transformation of the manufacturing industry.
• Steel: A new energy source, coal, was used to replace charcoal, alongside the use of blast furnaces.
• The Steam Engine: Designed by James Watt, it was used in textiles, mining, and steel. It was also utilized in ships and railroads.

The Rise of Economic Liberalism

With the Industrial Revolution and the development of capitalism, economic liberalism gained momentum. It was based on freedom across all sectors of the economy. The most prominent representative was Adam Smith.

Basic Principles of Liberalism

• Labor is the primary source of energy and wealth.
• Personal interest favors the interest of the community.
• Economic activity is regulated by the law of supply and demand.
• Private enterprise must have maximum individual initiative.
• The exchange of goods must be free.

The application of economic liberalism favored venture capitalists, who could act without restraint. This created serious social injustices, which eventually led to the labor movement.

Life in the Industrial City

Industrial activity drove the growth of cities, which changed their appearance: walls were demolished, and factories, railway lines, and stations proliferated. New neighborhoods were built for the working class and the bourgeoisie. Improvements occurred widely in public and domestic lighting, as well as the transit of persons and vehicles.

These changes were a reflection of modernization and economic growth, but they also acted adversely on the urban environment. The city became segregated into neighborhoods, and the disparity between social classes was quite evident.