Prelude to the Industrial Revolution (Notes Part I)

Notice: Notes will be released in parts in order to keep things more organized. Pg.553

• The industrial revolution made Britain the richest country in the world. This revolution also spread to many other European countries and the New World.
• However in another fifty years, Germany and the U.S. would beat Britain in this industrial race.

Origins

• Many factors contributed or coalesced in Britain to produce the Industrial Revolution.
• One factor was the agricultural revolution of the 18th Century, changes in methods of farming and stock breeding lead to an increase in food production.
• More people could be fed at less labor and less cost. Ordinary British families could buy food without spending almost all of their income.
• Rapid growth in population also created a greater work force that could run the emerging factories of the industries.
• The British had a ready supply of capital (the value of accumulated goods) to invest in the new industrialized machines and factories that were necessary to house them.
• British had profits from trade and cottage (when entrepreneurs would hire people in homes to make products) industries and also had a centralized bank and well-developed credit facilities.
• Britain also had a large number of individuals that wished to make profit if they had the chance.
• However, this was risky as a fortune that could be gained overnight could also be lost overnight.
• Most small businesses were run as a sole or family proprietorship (enterprise or business).
• Entrepreneurs also brought friends in but could just as quickly oust them.
• Britain had a plethora of natural resources such as iron ore and coal.
• Transportation in Britain was easy as Britain was rather small and had abundant rivers, roads and bridges were constructed with private and public investments, and soon canals were also being built. There were no customs barriers in Britain unlike the continental countries, making trade easier.

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• Britain’s government was also a key factor. Parliament would pass laws that protected private property. This created a favorable business climate as well as a stabilized government.
• A supply of markets gave Britain a place to export her goods.
• Great Britain had a powerful colonial empire also and a well developed merchant marine that could transport goods to any place in the world.
• Britain was able to cheaply produce goods that were wanted abroad, and abroad was not Europe, abroad was America, Africa and Asia. Those areas wanted inexpensive clothes and Britain was the only country that could fulfill that.
• Britain had the highest standard of living and a rapidly growing population.
• Because the demand was too great, entrepreneurs had to find new methods of manufacturing which led to inventions and the industrial revolution.