The Second Industrial Revolution: Capital, Labor, and Global Expansion

The Second Industrial Revolution: Key Changes

The Second Industrial Revolution (c. 1870–1914) was a process characterized by rapid economic and technological innovation. It brought profound changes, including:

• New energy sources and technological advancements.
• Demographic growth and development.
• Changes in business organization and labor practices.
• Increased organization of international trade.

The New Organization of Capital and Labor

Business Concentration

Small companies often could not afford the necessary innovations, leading to the rise of corporate giants who controlled the market and imposed prices. Key forms of concentration included:

• Horizontal Concentration: Organized by companies working in the same branch or sector.
• Vertical Concentration: Involves complementary companies in different stages of production.

Business Associations and Control

• Cartel: A business association formed to restrict or eliminate competition.
• Trust: The fusion of different enterprises into a new, single entity.
• Holding: A financial company that owns capital in various miscellaneous firms to control them.
• Monopoly: A situation where a single manufacturer or distributor has exclusive control over a product or service.

Series Production and Labor Methods

Taylorism (Scientific Management)

Taylorism is a method of industrial organization aimed at increasing productivity by eliminating useless movements of workers and saving time. It is organized into assembly lines where materials and tools reach the worker via a conveyor belt.

Fordism

Fordism is characterized by mass (series) production using assembly lines, which significantly lowers the cost per unit, resulting in lower consumer prices.

Assembly Line Labor

Also known as Working in Chain, this method requires each worker to perform a specific, repetitive task in the manufacturing process.

Economic Systems and Imperialism

• Free Trade: An economic system based on the free circulation of goods and services without tariffs.
• Protectionism: An economic system that imposes tariffs on imported goods to protect domestic industries.
• Imperialism: A system where the culture, politics, and economy of dependent territories are organized according to the interests of a dominant country.

Forms of Colonial Administration

Imperial powers established various administrative structures for their dependent territories:

• Colonies (Direct Rule): Territories that lacked self-government and were directly subordinated to the metropolitan government, which exercised political control through occupation.
• Colonies of Exploitation: Characterized by systematic exploitation of resources. Limited population emigrated from the mother country to manage operations, focusing on resource extraction.
• Settler Colonies: Areas where a large European population emigrated. Settlers enjoyed rights and privileges similar to those in the metropole, often imposed upon the indigenous populations.
• Protectorates: Territories where the indigenous government remained and acted formally, but was overseen and controlled by the metropolitan administration.
• Domains: Areas, typically with low indigenous populations (often focused on mining or agriculture), where white settlers established their own government and parliamentary system.
• Mandates: Established after World War I to administer territories previously belonging to the defeated powers, placed under the supervision of the victorious nations.