Industrial Revolution: Transport, Capitalism, and Social Classes

Railway and Steamship

The railroad was originally used in mines to transport ore cars moving on rails. A truly innovative phenomenon was Stephenson's locomotive in 1829, which triggered the steam-powered railway era. The first passenger line connected Manchester and Liverpool in 1830.

The steam engine was also applied to shipping, where steamboats replaced sailing vessels:

• 1807: First steamboats began operating in the United States.
• 1847: Ships began crossing the Atlantic Ocean in just 15 days.

Trade Growth

The Industrial Revolution gave way to a market economy producing goods for increasingly large markets. Improved transport systems permitted an increase in internal trade. Foreign trade also increased considerably by the mid-century.

While some supported free-trade theories—arguing that trade between countries encourages economic growth—many states beginning their industrialization imposed protectionism, defending domestic industry through import taxes.

Liberalism and Capitalism

Adam Smith established the core principles of liberalism:

• Personal interest and the pursuit of maximum profit drive the economy.
• Interests are balanced in the market through a price mechanism that adapts supply to demand.
• The state should not interfere in the economy, allowing for free trade.

Capitalism is structured as a system where the means of production are privately owned. However, the lack of planning and the continuous increase in output often generated economic crises.

Banking and Finance

Banks became vital institutions in the development of capitalism, acting as intermediaries between savers and industrialists needing capital. Public corporations emerged, where company capital is split into shares, which can be bought and sold on the stock market.

Social Differences

Social status was no longer established by birth, as in the Old Regime, but by wealth. The estate society gave way to a class society, structured into two main groups: the bourgeoisie and the proletariat.

The Bourgeoisie

• Big Bourgeoisie: Bankers, investors, and owners of large factories.
• Middle Liberal Bourgeoisie: Professionals, officials, and merchants.
• Petite Bourgeoisie: A high number of employees and shopkeepers.

The bourgeoisie eventually mixed with the old nobility to become the center of social life.

The Working Class

The industrial proletariat consisted of urban factory workers. Their working and living conditions were extremely harsh: shifts lasted from 12 to 14 hours a day, and wages were insufficient to support a family.