Industrial Revolution: Impact on Economy, Industry, and Society

The Industrial Revolution

The Industrial Revolution began in England around the 1780s and subsequently spread to Europe and the USA. It consisted of substituting the workforce of people and animals for machines, and replacing craft workshops with factories.

Economic Impact

The primary sector saw a rise in yields and productivity. For example, in 1650, one farm worker fed 1.5 persons, but by 1880, one worker could feed 2.5 persons.

Causes of the Revolution

• Introduction of new machines
• Improved tillage
• Quadrennial crop rotation
• Use of fertilizer to increase production, leading to more animals and more fertilizer (manure), thus improving production
• A new ownership structure of the land: the desire to privatize communal lands brought benefits by allowing them to be cultivated and perform to the maximum, with new crops like potatoes and corn.

Industrial Advancements

The Industrial Revolution brought increased and improved production, with the appearance of large factories with machinery and a large number of workers.

Key Developments

• Innovation: The emergence of the steam engine replaced human and animal effort, and was later applied to factories and transportation (e.g., the train).
• Specialization of Labor: Improvements in transportation infrastructure allowed for the opening of new markets, with faster, cheaper transportation of a larger volume of goods. In 1829, Stephenson's invention of the locomotive caused an increased demand for coal and iron.
• The Cotton Textile Industry: This industry was the engine of the Industrial Revolution, due to the import of cheap raw materials from India and the U.S. (from plantations using slave labor), its mechanization, and rapid profits.

Financial and Political Changes

• Investment banks emerged, providing long-term loans.
• New economic doctrines arose:
  • Liberalism or Free Trade: Advocated by Adam Smith, it opposed state intervention in the economy, believing that supply and demand should regulate the prices of goods and services.
  • Protectionism: Defended the imposition of tariffs on foreign products to make them more expensive and less profitable to import.

French industrial production barely satisfied needs and generated little profit.

Social Transformation

Industrial capitalism transformed the estates of the Old Regime into the social classes of the modern age.

Upper Classes

1. The Bourgeoisie: Replaced and gradually intermarried with the aristocracy. They controlled the media and political parties, imposing their values such as private property and individual success. Their children formed scientific elites, business leaders, and members of political parties.
2. Aristocracy: Lost part of its social relevance.

Middle Classes

There was an increase in liberal professions like doctors and professors. Lawyers imitated the forms and habits of the bourgeoisie. Civil servants, along with liberal professionals, formed a growing middle class.

Lower Classes

The Proletariat (industrial workers and peasants) only had their workforce and their children. Their situation was precarious, with 14-hour workdays, child labor, and unsanitary housing.

Growth of Businesses and Finance

• Businesses grew in size.
• Banks and listed companies gained importance in the financial sector.
• The Textile Industry: Characterized by small investments, quick sales, and high profits.
• Mining, Steel, and Railways: Required large capital investments, leading to companies issuing shares traded on stock exchanges.