Second Industrial Revolution & Imperialism: Defining Eras

The Second Industrial Revolution (1870-1914)

Key Developments and Impacts

The Second Industrial Revolution, spanning from 1870 to 1914, marked a period of unprecedented growth and transformation. This era saw significant advancements that fueled a dramatic increase in production:

• New Sources of Finance: The emergence of institutions like banks, joint-stock companies, and stock exchanges revolutionized capital formation.
• Innovative Business Structures: New organizational models such as cartels, trusts, and holding companies reshaped industries.
• Technological Breakthroughs: Continuous technological advancements drove efficiency and innovation.
• New Energy Sources: The widespread adoption of oil and electricity powered new machinery and industries.
• Emergence of New Industries: Sectors like electrical, food, chemical, automobile, and consumer goods industries flourished.

These developments led to profound consequences:

• Transformation of Work: The organization of work evolved significantly, notably with the development of the assembly line.
• Rise of Consumer Society: A consumer society began to emerge, though access to luxury items remained largely exclusive to the upper classes. Conversely, the lower classes often struggled to afford basic consumer goods.
• Economic Instability: This period also witnessed the onset of economic crises.

Global Expansion of Industrialization

The Second Industrial Revolution's expansion varied across nations:

• United States: Characterized by rapid industrialization and a high level of mechanization.
• Germany: A leader in the development of the iron and steel industries.
• Great Britain: Retained industrial power, though its global dominance began to wane compared to previous eras.
• France: The fourth most important industrial power, experiencing slower but consistent growth.
• Japan: Lacked significant private business investors, leading to substantial state intervention in industrial development.
• Russia: Industrialized later than other major powers, primarily through state investment.

Understanding Key Business Structures

During this era, several new business and financial structures became prominent:

• Joint-Stock Company (JSC): A company formed by individuals who each contribute a part of the capital. Investors buy shares and receive a proportional part of the business's losses or profits.
• Bank: Institutions that lend money to businesses in return for interest.
• Stock Exchange (SE): A marketplace where shares in companies are bought and sold.
• Cartel (CA): Horizontal associations of different companies working in the same industry, making collective decisions about production and prices to limit competition.
• Trust (TR): Vertical associations formed by various companies working in different industries, using their combined size to control the market for their products and eliminate competitors.
• Holding Company (HC): Large financial companies that earn profits by buying and holding shares in other companies, thereby controlling them.

Imperialism: Late 19th and Early 20th Centuries

Motivations and Consequences of Colonial Expansion

Imperialism, a defining feature of the late 19th and early 20th centuries, was based on the conquest and occupation of territories, known as colonies, by developed nations.

The primary driver of imperialism was the rise of finance capitalism, but several other factors contributed:

• International Prestige: European colonies served as symbols of national power and international prestige.
• Population Growth and Unemployment: Rapid population growth in Europe led to unemployment, prompting many to emigrate to colonies.
• Scientific Progress: Scientific curiosity and the desire for new discoveries spurred expeditions into colonial territories.
• Belief in Racial Supremacy: A pervasive belief in the supremacy of white people often justified colonial rule and exploitation.

However, imperialism also brought significant consequences:

• Political Rivalry: Colonies became arenas for intense political rivalry among imperial powers.
• Economic Disruption: Indigenous artisan crafts often disappeared, and the world economy became organized unequally, benefiting the colonizers.
• Demographic Shifts: Population in the colonies increased due to decreased mortality rates, though often accompanied by exploitation.
• Social and Racial Segregation: Colonial societies were marked by severe social and racial segregation.