1) Great Britain was the first to industrialize…
other nations will soon follow, throughout the 1800’s:
- U.S.
- Belgium
- Germany
- Italy (northern)
- Russia
- France
- Japan
… also industrializing, but much more slowly:
- Spain
- Austria-Hungary
- Bohemia (today: Czech Republic)
2) Each of these nations possessed common
factors of production, to varying degrees:
- Resources (rivers, coal, iron ore)
- Labor force
- Entrepreneurship
(inc. British emigrants, other nations sending
their youth to British universities)
- Government encouragement & investment
(i.e infrastructure - esp. railroads).
MELTING!
3) Early U.S. industrialization (early 1800’s):
- Resources (rivers, coal, iron ore)
- Growing labor force (women leaving farms;
immigrants)
- Entrepreneurship of British emigrants w/
expertise in textile production (i.e. Slater,
Lowell)
- War of 1812: British blockade of U.S. coast
encouraged domestic economic
independence & entrepreneurship.
4) U.S. industrialization:
- Began in the Northeast (New England)
- U.S. industrialization dramatically increases
after the Civil War (after 1865).
4) Post Civil War U.S. industrial growth dramatically
increases (cont.):
- Increasing utilization of more resources (coal, iron, OIL)
- Growth of inventions & innovations (light bulb, telephone)
- Rapidly growing immigrant population in cities
= inexpensive labor pool + more consumers.
- Dramatic increase in
railroads & city growth
as transit points for
flow of raw materials
and finished goods.
5) Businesses get bigger, stronger: the CORPORATION
Businesses sell SHARES of ownership (STOCK) to raise
CAPITAL for growth. Corporate charter granted by the state.
- Benefits to investor (shareholder):
 Entitled to share of profits (or loss), proportionate to # of
shares owned, w/ returns via increased stock value or
paid dividends.
 Not personally liable for debt or litigation
 Limits risk only to amount of investment
- Benefits to corporation:
 raise more capital w/ less debt
 spreads risk across many investors
 limits liability (but establishes reporting standards &
disclosure requirements)
 As corporations get larger, they get more powerful,
economically AND POLITICALLY
5) Corporations (cont.):
Corporate goal: maximize…
… PROFIT
… control of an entire industry
As major producers (and employers), corporations can
historically demand longer hours and lower wages, to provide
shareholders w/ larger profits (further encouraging more
investment).
Ex: Standard Oil,
Carnegie Steel
5) Corporations (cont.) - Corporate power:
- Corporations have limited liability for potentially abusive and
immoral practices, AND are “people” with constitutional rights
- Can become “too big to fail” (immortal “people”?), as large
employers and major drivers of the economy
- Money = speech = disproportionate influence over electoral
politics (voter messaging, candidate spending,) lobbying,
public policy
6) Turmoil in Europe = a head start for Britain:
- French Revolution (1789-1799), giving way to…
- Rise of Napoleon, Napoleonic Wars (1800-1815)
… both will bog down continental Europe in war &
instability, delaying industrial growth for the rest of
Europe, while allowing Britain to build an early
economic lead.
7) German industrialization (achieved by late 1800’s):
Disadvantages to overcome (early 1800’s):
- Politically divided = no cohesive government
or
economic policy (multiple small German
kingdoms
will not unify as a nation until 1871)
- Scattered resources & isolated pockets of
production (+ lack of infrastructure to link
resources, production, & markets)
German Industrialization takes off:
- Copies UK entrepreneurial model (imports
technology, sends Germans to UK for industrial
education) (beg. 1835)
- Massive investment in infrastructure (esp. railroads)
to link resources, cities, and markets
7) German industrialization achieved, late 19th century:
- Politically unified = strong government support
- Growing military = security, protection, expansion
… ALL the factors of production are coordinated
(“MELTING”)
… Germany will rival Britain as an industrial and
military power (beg. 1884).
8) Japanese industrialization (late 1800’s):
- Change in political leadership in 1868, followed
by significant public (government) investment in
factors of production to encourage private
enterprise (“MELTING”)
- Like other industrial nations, Japan then invests
in a MILITARY build-up, and becomes
increasingly IMPERIALISTIC (taking what
they
need from other nations, rather than
trading for it).
9) Global impacts of expanding industrialization:
- Increased trade and interdependency among
nations – both rich and poor, producers and
providers (of resources and labor)
= GLOBALIZATION
- Increased economic competition and international
tension
- Increased poverty and exploitation of
underdeveloped nations
- Growing wealth gap (GDP) between industrial
and nonindustrial nations
10) Imperialism:
When a nation controls other nations for
economic, political, and/or military gain.
11) Growing industrialization (and international
competition) increases demand for:
- RESOURCES
(inc. raw materials AND cheap labor)
- MARKETS (consumers)
Any nation can acquire both of these via trade;
militaristic & imperial nations can acquire both
by force, further gaining an unfair competitive
advantage over other industrial nations.
Increasing industrialization & global competition:
Britain 
US 
Germany 

France 
Belgium

Italy 
Russia


Japan 
… ALL will industrialize, militarize, and imperialize in
the 1800’s… what will this lead to in the 1900’s?
WORLD WAR I… and WORLD WAR II
12) Industrial nations gain wealth and health,
and a growing middle class.
A growing middle class will lead directly to:
- expanding educational opportunities
- democratization
People will gradually become more informed,
affluent, comfortable, and will demand an
increased political voice in their lives… leading
to an end to monarchy as a dominant political
system!