The Industrial Revolution is the result of substitution of competition for the Medieval regulation which one controlled the production and distribution of wealth.

It is not only important for the history of England but Europe owes to it the growth of two great systems of thought:

Economic science and, its antithesis, socialism

The landmarks of the development of economic science are connected with the names of four great English Economist's output.

Adam Smith's "Wealth of Nations" (1776):

He investigates the causes of wealth. It was the production of wealth which interested him. He wanted to increase the riches and power of the country.

Malthius's "Essay on population" (1798):

he was interested in the causes of poverty and found them in his theory on population

Ricardo's "Principles of political Economy and taxation" (1817):

He tried to distinguish between the laws of production and laws of distribution. He studies the way in which wealth ought to be distributed.

 Competition: is the dominant idea even of our time.

It has often be named " The struggle of existence"

We must distinguish between the struggle of existence and struggle for a particular kind of existence.

Without competition, no progress would be possible. But socialist maintained that this advantage is gained at the expense of an enormous waste of human life and labour. They add that the expense might be avoided by regulation.

A distinction must be made:

A)- competition in production

B)- competition in distribution

Trade unions tried to prevent oppression of the labours and the driving down the wages. 

Legislation regulates competition in distribution.

THE FACTS OF INDUSTRIAL REVOLUTION

The events leading to the Industrial Revolution:

1-RAPID GROWTH OF POPULATION:

      1.a)- decline in the agricultural population

      the density of population has shifted from the middle lands to the North.

2-AGRARIAN REVOLUTION   decrease in the rural population has due to:

     2.a)- the destruction of common-fields system of cultivation

     2.b)- the enclosure on a large scale  of common and waste lands.

     2.c)- the consolidation of small farms into large.

This changes bought a distinct improvement from an agricultural point of viewà scientific culture took the place of unscientific culture.

Great agricultural advances: the breed of cattle was improved, rotation of crops introduced invention of steam-plough.

3-REVOLUTION IN MANIFACTURING INDUSTRIES was due to the substitution of the factory for the domestic system: it was a consequence of the mechanical discovering of the time.

COTTON MANIFUCTURE:

was altered by:

• 1- the spinning jenny
• 2- the water frame
• 3- the mule
• 4- the steam engine
• 5- the power loom

IRON INDUSTRY:

 invention of smelting by pit coal application of the steam engine to blast furnaces

4- EXPANTION OF TRADE  was made possible by the great advance in the means of communication.

1- canals

2- improvement of roads

3- construction of turnpike roads

4- the first railway roads 1870

5-REVOLUTION IN THE DISTRIBUTION OF WEALTH

In agriculture rents rose: the rise was due to money invested in improvements but it was also defected of the enclosures system, of the consolidation of farms and of the high rise of corns during the France War.

6-This situation led to social changes in country life: a new class was bornà landlords but they soon lost most of their wealth during the war. In the manufacturing world a new class of great capitalist (employers) was born. As a consequence:

• § they're no longer existed the old relation between muster and man, part in the work of their factory.
• § Workman resorted to combination
• § Trade unions became to fight
• § Misery come upon large section of the working people.

7-MISERY OF WORKING PEOPLE was due to:

• Ø A fall in wages
• Ø The condition of labour
• Ø The high price of bread
• Ø Sudden fluctuation of trade

Combination and legislation proved very useful to grunt that free competition could produce not only wealth but well-being as well.