History 155 American Business History Lecture 6 Overview
History 155 American Business History Lecture 6 Overview of the Industrial Revolution Shelley Morrisette
Review of Prior Lectures and Readings: ØWhaling Industry ØWealth of Nations ØThe Business of Slavery ØAmerican Mercantilism ØFree Trade
Industrial Revolution Images
Objectives for the Lecture: ØWhy was the Industrial Revolution a Revolution? ØIt may appear as an evolution, but it impacts the population in an immediate and revolutionary manner!
GDP Per Capita History 7000 6800 6500 6000 5500 5000 4500 4000 3800 3500 3000 2500 2000 1650 1500 1000 679 113 116 109 138 141 160 00 18 00 17 00 16 00 15 00 14 00 12 00 10 0 80 0 20 0 0 00 -1 0 00 -2 0 00 -5 00 00 -1 00 50 -2 0 00 00 -3 -1 00 00 00 0 190 00 113 20 112 75 112 19 103 50 103 19 93 92 00 92 19 500 Source: Brad De. Long
GDP/Per Capita by year Year GDP/Per Capita -1000000 92 1200 109 -300000 92 1400 109 -25000 93 1500 138 -10000 103 1600 141 -5000 103 1700 160 -2000 112 1800 190 -1000 112 1900 679 0 113 1950 1650 200 113 1975 3800 116 2000 6800 1000 116 Source: Brad De. Long
GDP Per/Capita 2014 1. 2. 3. 6. Qatar Luxembourg Singapore Norway 10. United States $143, 427 $92, 049 $82, 762 89. China $12, 010 125. India $5, 327 $66, 937 $54, 597 198. Central African Republic $600 Source: WHO
How long does it take to earn an hour of light? ØToday: ½ second of work (new bulb) Ø 1950: 8 seconds of work (incandescent) Ø 1880: Ø 1800: 15 minutes of work (kerosene lamp) Source: Matt Ridley 6 hours of work (candle)
What was the Industrial Revolution? https: //www. youtube. com/watch? v=3 Efq-a. NBkvc
When did it occur? https: //www. youtube. com/watch? v=Jh. F_z. Vr. Z 3 RQ
Industrial Revolution Timeline 1763: Steam Engine 1793: Cotton Gin 1786: Steam Boat 1837: Morse Code/Telegraph 1829: Typewriter 1845: Sewing Machine
What were the outcomes of the I. R. ?
Answers ØHuge migration of cities ØFactory system launched ØMass production of goods ØIndustrial capitalism ØIncreased standard of living ØExpansion of democracy ØPower of ordinary people rises ØIncreased leisure time ØScience and research stimulated ØForeign markets for goods
Why is it important?
Answers ØChanged the world – forever! ØIndustrialization destroyed workers’ independence ØHuge investments required to operate large businesses – modern capitalism ØOverproduction ØMonopoly power ØUnemployment ØMass produced goods were cheaper ØIncreased standard of living
What was good about the I. R. ?
Answers ØCountry and people became wealthier ØChild mortality decreased ØLiteracy increased ØLife expectancy increased ØOverall health and wellbeing increased ØWorkers received more political power ØGrowing middle class
What was bad about the I. R. ?
Answers ØUntil regulation and laws were enacted, businesses created many externalities that included: Ø Pollution Ø Child – labor Ø Work death/accidents Ø Monopoly profits Ø Political influence/corruption Ø Workers lost independence
When did it end?
Answers ØThere is no date certain. Many historians use different dates for different countries: ØEngland (1760 – 1880) ØUSA (1800 – 1908) Ø Many other countries are industrializing now! Ø China Ø India Ø Vietnam
What does it all mean?
Answers ØIndustrialization is good and bad. With regulation the bad can be managed. ØFor industrialization to occur a power source is necessary ØEnergy and GDP are perfectly correlated ØEnergy must be – cheap, plentiful, reliable, dense, and scalable ØAll countries of the world want to industrialize because it means more “stuff” for their citizens ØPeople want stuff – smartphones, jeans, cars, etc.
Next time ØImpact of Industrial Revolution ØCommunication/Transportation/Production/War ØEconomics ØPolitics ØSociety/Culture/Quality of Life Ø Backlash of Industrial Revolution Ø Romanticism Ø Marxism/Socialism Ø Luddites
Questions?
- Slides: 25