Economic Transformation and Social Structure in the 19th Century

Economic Concepts

Crisis of Overproduction

A cyclical recession caused by an excess of supply relative to the consumption capacity of society.

Capitalism

An economic system based on the principles of economic liberalism, characterized by private initiative and a free market.

Spread of Capitalism and Industrialization

• Origin: Great Britain.
• Early 19th Century: Belgium.
• Second Half of 19th Century: France, Germany, USA, and Japan.
• Last Decades: Southern Europe (Italy, Spain), Austro-Hungarian Empire, and Russia.

Meiji Restoration

Occurring in 1868 in Japan, this event marked the abolition of feudalism and the beginning of industrialization in the country.

The Second Industrial Revolution (1880–1914)

Key Innovations and Industry

• Energy: Electricity and oil; electric and combustion engines.
• Transport: Trams, undergrounds, cars, and airplanes.
• Production: Mass production, Taylorism, and Fordism.
• Business: Industrial concentration, cartels, trusts, holdings, monopolies, and the rise of banking.
• New Sectors: Automotive, chemical, food, and capital goods industries.
• Technology: Telephone, cinema, photography, light bulbs, and reinforced concrete.
• Medicine: Advancements in antibiotics, vaccines, and drug production.

Class-Based Society

Social Hierarchy

• Upper Bourgeoisie: Large factory owners, merchants, and bankers. The ruling class, often mixed with the old nobility.
• Middle Class: Liberal professionals and middle-level officials.
• Petite Bourgeoisie: Artisans, shopkeepers, and farmers with access to higher education.
• Working Class (Proletariat): The largest and most disadvantaged group, including factory workers, shop assistants, and day laborers. They owned no property and worked for wages.

Labor Conditions

Liberalism abolished guild regulations, leaving workers without legal protections. Conditions included:

• Long hours for low wages.
• Unhealthy and dangerous working environments.
• Arbitrary dismissal.
• Child labor without access to education.
• Women paid 40% less than men.

Comparison: Bourgeoisie vs. Working Class Housing