The Spread of Industry throughout Europe

The Industrial Revolution: Overview of Era

Painting - Cottonopolis (farmland surrounded by factories)

Information below is adapted, in part, from the Giant EHAP Review Guide at HistoryTeacher.net.

Demographic Change

Prior to the eighteenth century, the levels of populations seemed to flow in cyclical, or wave-like patterns, depending on natural phenomena such as crop failures, plagues, etc.

Around 1730, a new era in Europe's demography began. During the 18th century (which is considered, demographically, to begin in 1730), Europe's population skyrocketed, jumping from 120 to 190 million. Prussia, Sweden, Spain, France, and especially, England experienced tremendous population increases during this period. After this time, the cyclical behavior of the populations stopped, and Europe's population simply continued to increase.

The rapid population growth was, according to historians, caused by a decline in mortality rates, as opposed to an increase in birthrates, in all the countries except for England. The decline in mortality rates occurred because Europe began to enjoy a more stable and better food supply due to improvement in the average climate, the opening of more farmland, and an improvements in transportation systems. Disease was still a prevalent issue, but, on the whole, mortality rates declined.

Economic Growth

During the 18th century, overall wealth increased, although the growth was not consistent. In the first decades of the century, prices remained stable, due in part to the economic consequences of the War of the Spanish Succession. Significant growth began around 1730 and continued until 1815. This period was characterized by gradual price inflation, which reflected growing demands for goods from a growing population. This inflation stimulated the economy, and, although there were some problems, generally it helped the economy. The growth, however, did not affect all sectors of society in the same way. Though the gradual increase in prices was good for landlords, employers, merchants, and landed peasants, it was very bad for the poor, landless peasants, who could barely afford to live.

Proto-industrialization is the economic development that occurred just prior to the rise of the factory system and may have led to it. Proto-industrialization, a.k.a. the putting out system, was a system in which merchants distributed raw materials to peasants' households. Those peasants would then create the requested items within the time frame given. The merchant must then arrange for pickup of the finished good, then sell it. The system had its positives:

increased manufacturing in rural areas.
strengthened marketing networks.
allowed additional income opportunities for peasants.
increased demand for goods (with the peasants making more money, they could spend more money as well).

But it also had its negatives:

overburdens the merchants.
proves to be fiscally wasteful - the amount of money to send the materials, pick up the materials is more than if all were housed together.
there is no oversight, more products could possibly be produced if the process could be streamlined and the workers held to a standard of maximum productivity.

Changes in Industry

Though, during the 18th century, most industries remained the same, dramatic change was beginning to occur, especially in the manufacturing of cotton cloth. The changes in industry were meant to increase the productivity of labor through new technologies. This replacement of workers with new tools and machines, which is known as factor substitution, eventually led to the factory.

Increases in performance in industry always depend on the structure of the society. Before Europeans could change the format of industry, they had to face major obstacles and make changes that affected the very structure of European society. Europeans faced many difficulties as they attempted to change the structure of the economy, such as:

Small Market Size - since European countries were cut off from one another for both physical and political reasons, merchants were forced to deal with very limited markets. This slowed the growth of specialized manufacturing and limited the mobility of capital and labor.
Skewed Distribution of Wealth - since the aristocracy held and spent the majority of the income, merchants would cater to their desires and produce small quantities of luxury goods, as opposed to creating an abundance of cheap goods that would be accessible to the public. This negatively affected supply and demand, causing the supply to never really match the demand.
Property Rights/Privileges - these traditional institutions worked against innovation, as rents and tolls often used up capital that would otherwise be available to both would-be consumers (peasants) and entrepreneurs (merchants).
Guild/Government Regulations - were the root of some of the largest problems for the merchants. As the guild regulations established a standard, traditional procedure for industry, which was not to be changed, they made innovation exceedingly difficult. Government restrictions on economic activity and licensing of monopolies only made it more difficult for merchants.

Laissez-Faire Economics

Many Europeans began to question and criticize the barriers that prevented further industrialization and innovation. They called for less control of the economy.

Adam Smith was a Scottish philosopher who epitomized the concerns and desires of the age. His novel, An Inquiry into the Nature and Causes of the Wealth of Nations (1776) discussed his philosophy regarding economics. Smith believed that money was not actually wealth, but only represented a portion of it. Real wealth consisted of the added value of manufactured items produced by invested capital. Most importantly, however, he stated that economic progress required that each individual be allowed to pursue his/her self-interest freely without restrictions for this would lead to economic growth. Natural divisions of labor and specialization, he stated, should be encouraged. This philosophy became known as laissez-faire, or "let them alone" economics. Smith also introduced the concept of the invisible hand which stated that if all individuals follow their own self-interest, it would be for the economic good of everyone, since everyone will do what they do best. The government was to step aside and allow the market to regulate itself.

Laissez-faire economics began to catch on, especially in England, and in 1786, France and Britain signed a free-trade treaty. Guilds were growing weaker, and in 1791, the French outlawed them. In the 1790s, the English also began to pass laws against the guilds, and the merchants gained freedom.

Why Great Britain?

Learn why England was the first nation to industrialize by reviewing the activity below.

Other reasons for Great Britain’s leading role in Industrialization:

Cottage Industry - Great Britain had already established a cottage industry model whereby people were working in the textile industry. This labor force just moved to the newly formed factories. These factories were necessary because of the size and expense of the new innovative machinery.
Textile production – Great Britain was the birthplace of many of the innovations that increased the output in the textile industry. The flying shuttle, the spinning jenny, and the water frame all made mass production of textiles possible and allowed for increased output and export.
Transportation - Great Britain led the way in terms of transportation. They were the first country to have a public railway and the first to use steam engines. These steam engines pulled trains on standardized tracks which allowed for the movement of goods to coastal cities for export to other countries. Also, Great Britain, a country with many rivers, built canals to help move goods to coastal areas as well. Boats did not just float down canals but were pulled by teams or draft animals.
Governmental support - Great Britain had a very stable government at this time, having worked out its problems during the Glorious Revolution. There was much money to be made from the textile industry and the government, led by Parliament, taxed the citizens and used the money to improve the infrastructure such as the railroad. The government also did not place too many restrictions on the trade of textiles. Commercial profits grew from the textile industry and Great Britain established a central bank with defined credit policies. Investors recognized that there was money to be made so capital was readily available. Also, the government rewarded inventors with financial rewards. They also repealed the Corn Laws which took the tariff off of imported grade, a controversial decision that served the commercial interests of members of Parliament.

Pictures from left ot right of the Power Loom, Spinning Jenny and Flying Shuttle

If You Aren’t Great Britain, You’re Behind!

While Industrialization may have begun in Great Britain, it did not take long for it to spread to the Continent, despite Great Britain’s efforts to hold on to some of its technology secrets. Railroads began to grow on the continent. This helped other countries that were producing goods and moving natural resources in order to sell them to other countries. Countries on the continent needed to develop a strong rail system before they could begin to compete with Great Britain in the area of industrialization.

Besides the lack of railroads, the countries on the continent were at a disadvantage for other reasons:

Impact of the French Revolution and Napoleonic Wars - The French Revolution and Napoleonic Wars had disrupted communication between the European countries. These countries were also trying to recover in other ways from these events and were less interested in the necessary investment in infrastructure that would have been necessary to catch up to Great Britain.
Guilds - In many places on the continent, guild restrictions still applied. Guilds had been around since the Middle Ages and served like private apprenticeships. People had to know other people in order to get in. This would limit job opportunities and the growth of skilled labor.
Financial Risk - Continental entrepreneurs were less likely to take risks. Countries such as France had a history of being unstable so people wanted to keep their assets liquid and accessible. They depended more on family than the government because they couldn’t be sure of its stability.
Lacked technical knowledge - Great Britain worked diligently to keep technical secrets from leaving their shores. The purpose of this was to decrease the competition in the markets. If others had the technology to catch up, it would cut into Great Britain’s profits.

France does become industrialized, albeit at a slower pace than Great Britain. However, in taking their time, France was able to have less dislocation of traditional production methods. This would include things such as handweaving. On the other hand, Great Britain industrialized so quickly that almost everything moved to mechanization and cottage industry workers could no longer produce goods; they were forced to become part of the mass production line.

Prussia, one of the Germanic states, also took a while to industrialize. However, they were rich in natural resources such as coal and iron. Once they were able to establish transportation means, such as railroads, they were able to expand their manufacturing and trading capacity.

Not everyone makes the transition as well.

In Eastern and Southern Europe, the lack of resources, the power of the elite, the tradition of serfdom, and the lack of governmental support were responsible for the lack of technological development in the 19th century.

Sketch of the Irish potato famine In Russia, serfdom still existed. The serfs were still tied to the land as they had been for centuries. The main economic activity in the country was still agricultural and the same primitive methods continued to be used. Landowners did not feel the need to invest in new technologies because they still had the workers who couldn’t leave and the workers were still producing. The landowners saw no reason to change what was working. Therefore, Russia remained behind other countries when it came to industrialization.

It would stand to reason that Ireland, a part of Great Britain, would have enjoyed the prosperity and industrial growth of Great Britain. However, this was not the case. The size of tenant farms in Ireland was such that the only crop that could be grown in enough quantity to feed a family was potatoes. This was fine until the Great Hunger or Irish Potato Famine occurred in Ireland. This was a blight on potatoes that caused starvation and the death of over 100,000 Irish citizens from 1845 - 1852. Great Britain made little effort to support the people of Ireland. People struggled to survive using primitive agricultural practices but with inadequate government support, they were unable to invest in the infrastructure necessary for industrialization. This caused Ireland to remain behind in the race to build an industrial nation.

Question Mark Icon

In your notes, respond to the following.

Name the country where the Industrial Revolution began and identify factors that help explain the origins of industrialization there. Explain, in your own words, how these factors coalesced into an interconnected, self-perpetuating process.
The Agricultural Revolution occurred earlier than the Industrial Revolution and, furthermore, had no direct technological or ideational connection to the Industrial Revolution. Why was the Agricultural Revolution so important for subsequent events? Hint: think back to the impact of the enclosure movement in rural Britain.

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