THE INDUSTRIAL REVOLUTION

The Industrial Revolution is the result of substitution of competition for the mediaeval regulation which ones 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 economists' output.

Adam Smith's "Wealth of Nations" (1776): He investigates the causes of wealth. It was the production of wealth witch interested him. He wanted to increase the riches and power of the country.

Malthus's "Essay of population" (1798): He was interested in the causes of poverty and found them in his theory of population

Ricardo's "Principles of political economy and taxation" (1817): He tried to distinguish between the laws of production and the laws of distribution. He studied the way in witch wealth ought to be distributed.

John Stuart Mill's "Principles of political economy" (1848): He tried to distinguish between the laws of production and laws of distribution. He studied the ways in which wealthought to be distributed. 

Competition is the dominant idea even of our time.

It has often been named the struggle of existence.

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

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

A distinction must be made:

• a- Competition of production
• b- Competition of distribution.

Trade unions tried to prevent oppression of the labourers 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:

1a Decline in the agricultural population (the density of population has shifted from the middle lands to the North)

2 Agrarian revolution:

2a The destruction of common-field system of cultivation

2b The enclosure on a large scale of common and waste lands

2c The consolidation of small farms into large

These changes bought a distinct improvement from an agricultural point of view.

                                              Scientific culture took the place unscientific culture

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

3) revolution in manufacturing industries was due to the substitution of the factory for the domestic system. It was the consequence of the mechanical discoveries of the time.

Cotton manufacture was altered by:

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

Iron industry:

1. invention of smelting by pit coal application of the steam-engine to blast furnaces;

4) expansion of trade was made possible by the great advance in the means of communication:

1. canals or systems of canals to transport goods;
2. improvement of roads;
3. construction of turnpike roads;
4. railroad (1870);
5. revolution in the distribution of wealth.

5) In the agriculture rent rose. The rise was due to money invested in improvements, but it was also defected of the enclosure system, of the consolidation of farms and of the high price of corn during the French war.

The situation led to social changes in country life: a new class was born -> landlords. But they soon lost most of their wealth during the war.

6) In the manufacturing world a new class of great capitalists (employers) was born. As a consequence:

1. there no longer existed the old relation between master and man because they didn't take part in the work of their factories;
2. workmen resorted combination;
3. trade unions began to fight;
4. misery came upon large section of working peolpe.

7)Misery of working people was due to:

1. a fall in wages;
2. the condition of labour;
3. high price;
4. sudden fluctuation of trade.

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