Industrial Revolution: Key Factors, Social Classes, and Economic Impact

Industrial Revolution Definition

The Industrial Revolution was not just a technological change with the appearance of machines, but also an economic shift towards economic liberalism and a social change with the emergence of the proletariat (workers). It originated in England and expanded to other countries.

Factors

Demographic

• Increased population due to decreased mortality (better hygiene and nutrition).

Agricultural Revolution

• New cultivation methods and productive systems.
• New land ownership system where common lands were purchased by individuals.

Economic

• Economic liberalism influenced British politicians to facilitate trade and development.

Intellectual (Technical)

• Various technical inventions were driven by existing needs, with each invention leading to another.

Natural

• Presence of raw materials (iron, cotton) and energy sources (coal) favored development.

Commercial

• England had advantages over other countries, allowing it to:
  1. Obtain money to invest in industry.
  2. Acquire cheaper resources.

Driving Engines: Industrial Sectors

The Textile Industry

Capital was invested in new spinning and weaving machinery, resulting in faster production, lower wages, and cheaper raw materials.

The Steel Industry

Implementation was driven by the demand for textile machinery and agriculture. It required large energy resources (coal), advanced technology, and capital investment.

Transport

Applying the steam engine to navigation and land locomotion boosted goods and passenger traffic, mining, steel activities, and the growth of cities.

Social Class Structure

Ruling Class or Wealthy

• Old European nobility and gentry.
• Allied themselves due to fear of working-class revolution.
• Derived revenues from vast land holdings.
• Business bourgeoisie (industrial, commercial, and banking).

Middle Class

• Small business owners, medium landowners, officials, and professionals.

Working Class

• Farmers, smallholders, tenants, laborers, and industrial workers.

Proletariat Characteristics

Employees were not involved in ownership or management, depended on the employer's will, and lost community services (disappearance of guilds).

Workers' Protest Movements

Caused by low wages, excessive working hours, and lack of rights.

Definitions

• Luddite: Protest phenomenon where people destroyed machines, blaming them for unemployment.
• Chartist: Demanded a bill of rights to gain parliamentary representation.
• Utopian: Theories attempting to establish an alternative model to capitalism, suggesting a more just and ideal society.
• Scientific Socialism: Studied capitalism scientifically and proposed a method for achieving socialism.
  Big Ideas:
  • Class Struggle (conflicts between rich and poor).
  • Gain (money taken by the rich from the poor).
  • Workers' Revolution and Dictatorship of the Proletariat (workers take power, state ownership to eliminate private property).
  • Communism (Everything is owned communally).

Anarchists

Opposed capitalism, scientific socialism, and any form of authority.

Capitalist and Market Economy

Are they the same?

Yes, they are essentially the same. In a market economy, most productive activities are undertaken by individuals or private companies, following supply and demand principles with minimal state intervention.

Principles of Economic Liberalism

• Free market.
• Economy based on supply and demand.
• Competition empowers consumers.
• State intervention is limited to ensuring freedom.

New Forms of Business Association

Developed to mitigate competition and declining profits.

Highlights

• Cartel
• Trust
• Holding

Definitions

• Company: A partnership to raise money for an enterprise, with shares distributed based on investment.
• Work of the Owner in the Capitalist Enterprise: Participates in management but not in production.
• Mass Mechanization: Workers become part of the production process, designed to produce more in less time.
• Series Production: Workers specialize in a part of the production process, saving time and effort.