Industrial Capitalism and Its Impact on 19th-Century Society

Industrial Capitalism

The Industrial Revolution, originating in Britain, propelled the rise of capitalism and liberalism. This system subsequently spread throughout Europe, the USA, and Japan.

In the eighteenth century, Adam Smith defined economic liberalism. He posited that self-interest was the driving force of the economy, prices adjusted supply to demand, and the state should not interfere with free trade.

Under these principles, capitalism is based on a system where the means of production are privately owned.

When supply outpaces demand, businesses fail, stockpiles accumulate, and unemployment rises. This chain of events leads to economic crises.

Banks played a crucial role, providing loans and facilitating payments through checks and bills. They acted as intermediaries between savers and industrialists.

Corporations emerged due to companies' need for substantial capital investment.

During the nineteenth century, industrialization spread to countries like France and Belgium, with a focus on steel and textiles. Between 1850 and 1870, Russia, Germany, the USA, and Japan also industrialized, driven by technological advancements, the role of banks, and greater state intervention.

Southern Europe experienced limited industrialization, primarily in rural areas. Western Europe did not fully industrialize until the twentieth century.

The National Convention

The National Convention was the name given to the National Assembly. It is divided into two periods: the Jacobin period and the fall of the Jacobins.

Liberalism and Nationalism

Liberalism is a political system where the individual is a citizen, and all citizens constitute the nation, which holds sovereignty.

Nationalism is a political ideology where the people govern themselves and defend their sovereignty.

Liberalism, Democracy, and Popular Sovereignty

Liberalism: Initially, national sovereignty was based on census suffrage.

Democracy: Aligned with the basic tenets of liberalism.

Popular Sovereignty: Advocates for the participation of all male citizens in political life through universal suffrage.

Italian Unification

In 1859, Count Cavour initiated a war against Austria, securing the annexation of Lombardy. Garibaldi overthrew the monarchs of the central and southern Italian states. Victor Emmanuel was subsequently proclaimed King of Italy. The Austrians ceded Veneto, and in 1870, the Papal States were annexed.

The Steel Industry

The development of the steel industry was facilitated by Darby's use of coking coal in 1732, which produced high heat output. Later, Bessemer invented a converter to transform iron into steel. This stimulated new processes like slag removal and the manufacture of iron sheets.

Free Trade Theories

Two main theories emerged: free trade and protectionism.

Capitalism and Cyclical Crises

Capitalism is a system where the means of production are privately owned by a small group, the bourgeoisie. Workers, without property, exchange their labor for wages. Crises occur due to a lack of planning and the constant increase in production.

Unions and Their Initial Demands

Unions aimed to improve workers' conditions. Their initial demands included the right of association, reduced working hours, pay increases, and the regulation of child labor.