• (par. 1) The Industrial Revolution is the substitution of competition for the medieval regulations which had previously controlled the production and distribution of wealth
led to growth of two systems of thought:

1) Economic science 2) Socialism

a) Adam Smith
b) Malthus
c) Ricardo
d) John Stuart Mill

• (par. 2-3) Facts of Industrial Revolution.
1) growth of population
2) decline of agricultural population

• (par. 4) Decrease in rural population.
causes: 1) destruction of the common-fields system of cultivation
2) enclosure: common and waste lands
3) consolidation of small farms into large
• (par. 5) Agricultural advance.
cause - more scientific approach:
e.g.
bread of cattle
rotation of crops
steam - plough
agricultural societies
• (par. 6-7) Growth of industry.
causes;
1) mechanical inventions in textile industry
e.g.
Spinning jenny
Water frame
Self-acting mule
Steam engine
most important:
steam engine
Engine for cotton mill

2) mechanical revolution in iron industry
e.g.
Smelting by nit-coal
Blast furnaces
3) improved means of communication
e.g.
Grand Trunk Canal
Grand Junction Canal
railroad

results: 1) increase in commerce
2) substitution of factory system for domestic system.

• (par. 8) Revolution in distribution of wealth:
rise in rents caused by
1) enclosure system
2) consolidation of farms
3) war
4) high price of corn
social changes in country life:
• (par. 9) Social changes in manufacturing world: the farmers shared in the prosperity of the landlords; for many of them held their farms under beneficial leases, and made large profits by them.
consequences:
1) chased to work and live with their labourers
2) cash nexus
3) class conflict.
• (par. 10) Misery of working people often caused by:

1) rise of prices
2) fluctuations of trade
3) conditions of labour

Conclusion: the effects of Industrial Revolution prove that free competition ma produce wealth without producing well-being.