Industrial and American Revolutions: Economic & Political Changes

First Industrial Revolution

Industrialization: a revolution in the way work was done — from work performed by hand at home or in a workshop to work done by steam-powered machinery in factories.

Factors of Production

Factors of Production: land, labor, and capital resources — the basic resources that are combined to create useful goods and services.

Laissez-faire and Labor Conditions

Laissez-faire: a free-market approach that eases the process of obtaining resources but can also reduce protections for workers. Effects during the Industrial Revolution included:

• Greater population density in industrial areas — more people, more jobs, more products
• Long working hours with few breaks
• Reliance on unskilled labor and minimal safety regulations

Classical Economic Laws

• Law of Self-Interest: people work for their own benefit.
• Law of Competition: competition forces producers to improve quality and efficiency.
• Law of Supply and Demand: prices and production are influenced by supply and demand levels.
• “The Invisible Hand”: as supply increases, prices tend to fall — a metaphor for self-regulating market forces.

Economic Systems

Capitalism: an economic system that features private ownership of the means of production.

Mercantilism: a system in which a country attempts to amass wealth through trade with other countries, exporting more than it imports and increasing stores of gold and precious metals. It is often considered an outdated system.

Labour Organization

Division of Labour: the separation of a work process into a number of tasks, with each task performed by a separate person or group.

Specialisation of Labour: similar to division of labour, but emphasizes individuals or groups becoming specialized in specific tasks.

American Revolution

The Declaration of Independence: a break-up letter to King George III declaring the thirteen colonies independent from British rule.

Foundations of U.S. Government

The U.S. Constitution: designed to create a government and to provide the framework for civil rights and institutions. It has been amended 27 times.

The Bill of Rights (Amendments I–X): drafted by James Madison in 1789; the first ten amendments enumerate specific protections and freedoms for citizens.

Federalism and Separation of Powers

Federal System / Federalism: the division of power between national and state governments; originally associated with supporters of the Constitution (Federalists).

Checks and Balances: a method to ensure that no branch of government becomes more powerful than the others.

Branches of Government

• Legislative Branch (Congress): makes laws and has the power to raise and support armies.
• Executive Branch (President): carries out and enforces the law; manages the executive functions of government.
• Judicial Branch (Courts): interprets laws and limits the power of the other branches through judicial review and interpretation.

Conflict and Warfare

Proxy War: a proxy war is an armed conflict in which external powers use third parties to fight on their behalf. (The Seven Years' War was a proxy conflict in many theaters because combatants often fought outside their own homelands.)