 Large
population
 Extensive natural resources
• Water power and coal to fuel machines
• Iron ore for construction
• Rivers and harbors for shipping and
transportation
 Expanding economy
• Investors
• Banking system
 Political stability
 Enclosures
 Jethro Tull-
seed drill
 Crop rotation
 Robert Bakewell- selective breeding
 John
Kay- flying shuttle
 James Hargreaves- spinning jenny
 Richard Arkwight- water frame
 Samuel Crompton- spinning mule
 Edmund Cartwright- power loom
 Eli Whitney- cotton gin
Many of these inventions were bulky and
expensive- they took the work of spinning
and weaving out of the house…
Textile merchants set up the machines in
large buildings called
FACTORIES
 Early
models of steam enginesexpensive to use
 James Watt- made the steam engine work
faster and more efficiently
 Robert Fulton- steamboat
 John McAdam- improved road
constrution
Spurred industrial
growth
 Created hundreds of
thousands of new jobs
 Boosted England’s
agricultural and fishing
industries
 Encouraged country
people to take city jobs
and city dwellers to
venture to resorts in
the countryside

Great Britain blockaded the U.S.
As a result, the U.S. was forced to use its
own resources and develop independent
industries
 Samuel
Slater- emigrated to the U.S. and
built a spinning machine from memory
and a partial design
 Moses Brown- opened the first factory in
the U.S.
 Francis Cabot Lowell- factory towns
 Technological
boom- electric light bulb,
telephone
 Growing urban population- consumed
manufactured goods
 Railroads- transportation, shipping, jobs,
development of cities
 Stock-
certain rights of ownership
 Corporations- business owned by
stockholders who share in its profits but
are not personally responsible for its
debts
 Corporations were able to raise large
amounts of capital needed to invest in
industrial equipment
 Standard
Oil- John D.
Rockefeller
 Carnegie Steel
Company- Andrew
Carnegie
 Controlling
all
aspects of industry =
Profits!
 Reducing the cost of
producing goods =
Profits!
 Workers
earned low wages for laboring
long hours
 Stockholders earned high profits
 Corporate leaders made fortunes
 Began
in Belgium
 The rest of Europe experienced
industrialization mostly by region rather
than country
 Some countries did not industrialize due
to geographic barriers and social
structure
 Shifted
world balance of power
• Widened wealth gap between nations while
strengthening economic ties
• Promoted imperialism
 Transformed
society
• Population, health, and wealth rose dramatically
in all industrialized countries
• Development of a middle class- greater
opportunities for education and democratic
participation
Stemmed from French economic
philosophers of the Enlightenment who
criticized the idea that nations grow
wealthy by placing heavy tariffs on foreign
goods and argued that government
regulations only interfered with the
production of wealth
If government allowed free trade the
economy would prosper
 The Wealth
of the
Nations
 Defended the idea of
a free economy
 Based on 3 natural
laws of economics:
• Law of Self-interest
• Law of Competition
• Law of Supply and
Demand

An economic system in
which the factors of
production are
privately owned and
money is invested in
business ventures to
make a profit
Thomas Malthus- An
Essay on the Principle
of Populationpopulation increases
more rapidly than the
food supply
 David RicardoPrinciples of Political
Economy and Taxationa permanent
underclass will always
be poor

Laissez-faire thinkers
opposed government
efforts to help poor
workers
Thought creating minimum
wage laws and better
working conditions would
upset the free market
system, lower profits, and
undermine the production
of wealth in a society
Other thinkers believed
government should
intervene
That wealthy people or the
government must take
action to improve people’s
lives
 People
should judge ideas, institutions,
and actions on the basis of their utility
(usefulness)
 Government should try to promote the
greatest good for the greatest number of
people
 In general, the individual should be free
to pursue his or her own advantage
without interference from the state
 Factors
of production are owned and
operate for the welfare of all
 Grew out of an optimistic view of human
nature, a belief in progress, and a concern
for social justice
 Government should plan the economy
rather than depend on free-market
capitalism
 Government control of factories, mines,
railroads and other key industries would
end poverty and promote equality
 The
Communist
Manifesto
• Bourgeoisie- “haves”
• Proletariat- “have
nots”
• Conflict
• Predicted workers will
overthrow the owners
 Capitalist
system will eventually destroy
itself
 Factories will drive small artisans out of
business, leaving a small number
controlling the wealth
 Proletariat will revolt- seize the factories
and mills
 Workers will share profits- economic
equality for all
 Classless society
A form of complete socialism in which the
means of production would be owned by
the people
All private property would cease to exist
All goods and services would be shared
equally
 Lenin
(Russia)
 Mao Zedong (China)
 Fidel Castro (Cuba)
Factory workers faced long hours, dirty
and dangerous working conditions, and
the threat of being laid off
Union spoke for all the workers in a
particular trade, engaged in collective
bargaining, and would strike to gain
leverage for their demands
 Factory
Act of 1833 (GB)
 Mines Act of 1842 (GB)
 Ten Hours Act of 1847 (GB)
 National Child Labor Committee (US)
 Abolition
of Slavery (GB 1833, US 1865)
 Fight for Women’s Rights
 Public School Systems
 Prison Reforms