(par. 1) The Industrial Revolution is the substitution of competition for the mediaeval regulations which had previously controlled the production and distribution of wealth. It led to the growth of two systems of thought:
1) Economic science 2) Socialism

The development of Economic Science in England has four chief landmarks, each connected with the name of one of the four great English economists.
1) Adam Smith (Wealth of Nations,1776)
2) Malthus (Essay on Population, 1798)
3) Ricardo (Principles of Political Economy and Taxation, 1817)
4) John Stuart Mill (Principles of Political Economy, 1848)

(par. 2-3) Facts of Industrial Revolution.
1)rapid growth of population
2)relative and positive decline in the agricultural population.

 (par. 4) Decrease in rural population, causes:
1) the destruction of the common-field system of cultivation;
2) the enclosure, on a large scale, of common and waste lands
3) the consolidation of small farms into large.

(par. 5) Agricultural advance, cause — more scientific approach:
1) the breed of cattle was improved
2) rotation of crops was generally introduced
3) the steam-plough was invented
4) agricultural societies were instituted.

(par. 6-7) Growth of industry. causes:
1)mechanical inventions in textile industry
- spinning- jenny
- water-frame
- Crompton’s mule
- self-acting mule
most important: steam engine, engine for a cotton-mill, power-loom

2)mechanical revolution in iron industry
- steam engine for blast furnaces
- smelting by pit-coal

3)improved means of communication
-canal system
-roads
-railroad

results:
1) expansion of trade
2) substitution of factory system for domestic system.

(par. 8) Revolution in distribution of wealth: rise in rents caused by
1) money invested in improvements
2) enclosure system
3) consolidation of farms
4) high price of corn

Social changes in country life: 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.
In consequence, their character completely changed; they ceased to work and live with their labourers, and became a distinct class.

(par. 9) Social changes in manufacturing world:
The new class of great capitalist employers made enormous fortunes, they took little or no part personally in the work of their factories, their hundreds of workmen were individually unknown to them
consequences:
1) alienation
2)old relations between masters and men disappeared
3)class conflict

(par. 10) Misery of working people often caused by:
1) fall in wages
2) conditions of labour
3) rise of prices

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