Rise of Capitalism, Industrial Revolution, and Labor Movements

Development of Trade and Capitalism

National and international trade grew as transport improved. Different regions specialized in different products.

Capitalism: Money was invested in industries to grow and produce more money for new investments.

1. Leads to more complex companies and societies; people invested capital, and others administered it.
2. Companies sold shares, and the stock exchange market developed.

Banks became increasingly important. They provided loans and invested capital. Financial operations became more complex, and banks and businesses began to use checks and letters of credit.

Spread of the Industrial Revolution

Britain's example was followed by other European countries (Belgium, France, Switzerland, Germany).

Consequences of the Industrial Revolution

• International relevance of countries measured by their level of industrialization.
• Other economic activities received a new impetus with the introduction of technology.
• Urban expansion, factories situated in towns and cities.
• Science and technological research developed.

The New Class Society

• Radical transformation of society led to a wealthy middle class.
• New social class: Proletariat
  • Low wages
  • Long working hours
  • No protection
  • Overexploitation of women and children

The Labor Movement

• Poverty of the working class led to the labor movement.
• Workers organized societies to help each other.
• Luddites: Groups of workers who destroyed machinery and mills.
• Trade unions: Groups that fought to improve working conditions.

Socialism and Anarchism

The First International (IWA)

• Association which integrated a variety of left-wing, socialist, and anarchist political groups, as well as trade unions from various countries.
• It dissolved because of disputes within the different groups.