MODERN ERA:1750 - 1914

IMPACT OF TECHNOLOGY

INDUSTRIAL REVOLUTION

• 1780s Breakthrough in productivity– Mechanization of factory, labor– Production of vast quantities of goods– Decreasing costs of goods

• Preceded by other revolutions and changes in attitude– Scientific, Commercial Enlightenment, Agricultural– Change in mindset

• New Ideas• Risk takers

– Massive markets for products– Improved organizational skills– Upsurge in technology

• Inventors apply science to life, work• Many new inventions

– Capitalization and Finance• Profits from trade, colonies• Invested in Europe

– Institutional changes• Limited government of a constitutional democracy• Notion that government should be minimally involved in economy

FOUNDATIONS OF INDUSTRIALIZATION

• Coal critical to the early industrialization of Britain – Shift from wood to coal in 18TH century; deforestation caused wood shortages – Abundant, accessible coal reserves in Britain

• Overseas colonies provided raw materials, capital – Plantations in the Americas provided sugar and cotton – Colonies also became markets for British manufactured goods – Grain, timber, and beef shipped from United States to Britain after 1830– Profits from sugar funded banks, provided investment capital

• Demand for cheap cotton spurred mechanization of cotton industry – John Kay invented the flying shuttle, 1733 – Samuel Crompton invented the spinning "mule," 1779 – Edmund Cartwright invented a water-driven power loom, 1785

• James Watt's steam engine, 1765 – Burned coal, which drove a piston, which turned a wheel – Widespread use by 1800 meant increased productivity, cheaper prices

• Iron and steel also important industries, with continual refinement – Coke (purified coal) replaced charcoal as principal fuel – Bessemer converter (1856) made cheaper, stronger steel

• Transportation improved with steam engines and improved steel – George Stephenson invented the first steam-powered locomotive, 1815 – Steamships began to replace sailing ships in the mid-nineteenth century – Railroads and steamships lowered transportation costs – Created dense transportation networks

IMAGES OF INVENTION

INDUSTRIAL CAUSE & EFFECT

SPINNING <-------------------------------------> WEAVING

(EX: Spinning Jenny)

+(EX: Flying

shuttle)

Machines become heavier, thus

Extra power is needed, thus

Watermills, steam engine invented, thus

Emergence of factory system, replacing cottage industry;

Because production must be concentrated near the power source, and

machines become too expensive to be owned by workers, thus

Profound social transformations, thus

Urban influx, crowding, unprecedented social problems thus

Workers organize, government passes laws and reforms, unions begin to arise

FACTORY SYSTEM• The factory

– Gradually replaced the putting-out system – Factory system required division of labor– Each worker performed a single task – Required a high degree of coordination– Work discipline, close supervision

• Working conditions often harsh – Workers lost status

• Not skilled• Just wage earners

– Harsh work discipline– Fast pace of work– Frequent accidents

• Industrial protest – Saboteurs

• Flemish workers throw wooden shoes into machines• Shoes were called sabots hence saboteur

– Luddites in England • Struck against mills and destroyed machines, 1811 and 1816 • Fourteen Luddites hung in 1813, and the movement died

– Weaver rebellions in Germany against power looms

SPREAD OF INDUSTRIALIZATION• British industrial monopoly

– 1750 to 1800– Forbade immigration of skilled workers

• Continental System of Napoleon– Abolished internal trade barriers in western Europe, sped up process– Dismantled guilds

• Belgium, France – Moved toward industrialization by mid-nineteenth century– Belgium was first as it most resembled England, closest ports

• Germany– Bismarck sponsored heavy industry, arms, shipping– Built railroads to move German army around, benefiting commerce– Rails required steel, coal– Eventually developed chemicals, electrical industries

• The United States– Slow to start: few laborers, little capital – Cotton and Textiles began revolution

• British craftsmen started cotton textile industry in New England, 1820s• Southern cotton was going to England, diverted to New England factories• New England most resembled Old England conditions

– Civil War led to explosion of steel, iron, armaments, clothing, food production– Rail networks developed in 1860s

• Integrated various regions of United States• Facilitated export markets, development of ports

– Developed electrical, transportation industries

MAPPING THE REVOLUTION

INDUSTRIAL CAPITALISM• Mass production

– Provided cheaper goods for all classes of society– Eli Whitney

• Mass production of interchangeable parts for firearms• Cotton Gin made cotton harvesting, production cheaper

– Henry Ford • Introduced assembly line • Applied to automobile production

• Industrialization– Expensive– Required large capital investment

• Structural Changes of Industry– Large-scale corporations with investors – New laws protected investors from liability

• Monopolies, trusts, and cartels– Competitive associations – Vertical organization (Monopoly)

• One company controls all aspects of production within a single industry• One company dominates whole market• Oil: Drilling, processing, refining, by-products• Rockefeller's Standard Oil Co. (Exxon)

– Horizontal organization (Trusts or cartel)• Owns all industries from manufacturing to marketing of a common product • Group of companies work together to control market, all aspects of products• IG Farben: world's largest chemical company

– Most countries distrustful of monopolies although cartels tolerated

TRANS-SIBERIAN RAILROAD

Cities, industry grew up along railroad; mines

farms, opened in area

INTERNATIONAL DIVISION OF LABOR

• Industrialization increased demand for raw materials – Nonindustrialized societies became suppliers of raw materials

• Cotton from India, Egypt • Rubber from Brazil, Malaya, Congo

– Fueled demand for colonies• Economic development

– Europeans, Americans exported capital• Capital went to nations with industrialization• Heavy industry, oil, mineral extraction, grains, railroads

– Better in lands settled by ethnic Europeans • High wages encouraged labor-saving technologies• Strong European immigrant pool with some education

– Countries Benefiting• Canada, South Africa, Australia, New Zealand• Argentina, Mexico, Brazil, Chile, United States• Russia, Japan

• Economic dependency more common in other countries– Sub-Saharan Africa, south Asia, and southeast Asia– Latin America had some industry but largely dependent – Infrastructure for movement of goods out of country

• Colonies generally export raw materials but little industry built• Railroads and export infrastructure (ports) built in colonies

– Characteristics• Foreign investors owned and controlled plantations and production • Free-trade policy favored foreign products over domestic • World divided into producers and consumers

ECONOMIC EXPANSION IN U.S.A. & CANADA

• British capital – Crucial for early development of U.S., Canadian industries – Foreign capital supported textile, iron and steel, railroads– 40% of all ranches, beef exports owned by British – Helped create industrial rival (USA) that surpassed UK

• Railroads – Integrated national economy by late 19th century – 200,000 miles of railroad in US by 1900– Economic stimulus

• 75 percent of steel went to railroads• Supported other industries especially retail, transport along lines• Encouraged immigrant labor, farmers to settle along tracks, in West

– Changed American landscape by opening west, closing it off; set time zones• Dramatic economic growth between 1870 and 1900

– New inventions and technologies• Thomas Edison was symbolic of the Age• Electric lights, telephones, and so on

– Labor conflicts over wages and working conditions– Big business won disputes as they controlled courts, government

• The Canadian National Policy: plan to develop national economy – Wanted to attract migrants and British capital but to protect Canadian industries – Construction of Canadian Pacific Railroad opened the west to settlement – Boom in agricultural and industrial production late 19th, early 20th centuries

• Heavy U.S. investment in Canada– US and Americans owned 30 percent of Canadian industry by 1918– Much cooperation and interdependence especially along Great Lakes

LATIN AMERICAN DEPENDENCE

• Colonial legacy – Prevented industrialization – Spain, Portugal never encouraged industries

• Limited success at industrialization – 1820 – 1850: Economic Stagnation

• Wars of independence had disrupted economy• Most wealth tied to land, agriculture• Export of primary, unfinished goods especially guano, coffee, hides

– Too many unsolved social problems retarded industrialization• Economic growth part of 2nd Industrial Revolution

– Change grew out of liberalizing effects, reforms in late century• Entrepreneurs, intellectuals, landowners brought in foreign investments• Facilitated by new technologies (railroads, steamships)

– Great Boom driven by exports• Demand for rubber, copper, tin, silver, beef, bananas, oil, coffee, cocoa• Capital intensive development of primary product exports• Trade increased by almost 50% from 1870 – 1880• British initially preeminent; Germany and US increasingly rivals for area

– Mexico, Brazil, Argentina • Society, infrastructure transformed by this Great Boom• But wealth often in hands of foreigners, upper elite• Growth was often at the expense of local interests, poor, minorities• Liberal idealism often sold out to wealth of elite, profit

JAPAN & THE INDUSTRIAL REVOLUTION

• Meiji Restoration– US industry, technology amazed, scared Japanese– Warships, weapons showed Japanese vulnerability

• Industrialization in Japan – Promoted by government

• Many monetary incentives • Way to avoid Western encroachment• Food production subsidized by government

– Hired foreign experts to build modern industries• First models built by westerners, often abroad• Next models built by Japanese in Japan• Borrowed heavily in knowledge from Great Britain

– Created new industries• Emphasized heavy industry: iron, steel, power• Light industry: clothing followed

– Opened technical institutes and universities – Government-owned businesses privatized (zaibatsu)

• Old samurai families frequently bought these industries• Came to dominate transportation, weaponry, electronics

• Industrialization fueled trade, imperialism– Japan had no raw materials, needed to trade– Influenced Japanese desire for colonies, empire– Japan was the most industrialized land in Asia by 1900

RUSSIAN INDUSTRIALIZATION

• Russia experienced the 2nd Industrial Revolution– Financed by exportation of minerals, oil, gas, grains– Development of rail system spurred other industries, exports– Strongest development in coal, steel areas of Ukraine– Rise of industrial cities: St. Petersburg. Moscow, Poland, Ukraine

• Promoted by tsarist government, French government– France needed Russia as a military ally against Germany– Russia needed a modern economy to compete on world stage– Formula: French loans/investment, sale of Russian grain

• Sergei Witte, Minister of finance, 1892-1903 – Top-down Management Style– Supported railway construction

• Military rationale: to move troops to border if attacked• But stimulated other industries including exports

– Remodeled the state bank– Protected infant industries with tariffs, subsidies– Secured foreign loans especially from France

• Industrial discontent intensified – Rapid growth of factories, urban working class– Industrialization fell hardest on working classes – Government reaction

• Outlawed unions, strikes• Workers increasingly radical socialists, Marxists, Populists

– Business class supported autocracy, not reform• By 1900 produced half the world's oil, significant iron, armaments

IMPERIALISM & ECONOMICS• Industrialization fueled imperialism

– Industry needed raw materials, specialized crops• Rubber, tea from SE Asia• Gold, diamonds, copper, coffee from Africa• Cocoa, hemp from Latin America

– Industry needed cheap laborers– Entrepreneurs needed markets– Colonies seemed one easy answer

• Technology applied to colonial problems– Infrastructure built up to exploit colonies

• Railroads and ports were first to be created• Bridges, roads also built

– Technology used to extract minerals from mines– Science applied to farming to increase yields

• Demand for raw minerals, markets produced horrible violence– British destroy Indian textiles to sell British goods to Indians– British, Americans, French fight Opium Wars to sell opium to Chinese– Belgian atrocities in creating the Belgian Congo– British Boer War to obtain gold, diamonds of Afrikaaners

• Important Fact: Colonies never paid for public expenditures– Expense by Western governments exceeded what was earned from colonies– Wealth, profits went to Western businessmen, companies– Only France and UK benefited from colonies but it was not economic

• In World War I: French African troops saved France at Battle of Marne• In World War I and II: British Indian Army provided England with an edge to survive

IMPACT OF INDUSTRIALIZATION

• The world gets smaller, nations come together– Technology linked nations that were once distant– Technology made people in one nation into a community

• US, Canada, Australia, Russia: technology made them possible• India created by the railroads

• Rise of a true world system– Communication

• Morse Code, telegraph• Telephone, Trans-Atlantic cable• Newspaper industry, mail systems• Photography

– Transportation• People visit another country, across ocean in weeks• Railroads, subway, automobile • Trans-oceanic ships• Riverboats, steamboats, cargo boats

– Exchanges become almost instant• Technology becomes part of life

– Proliferation of machines mechanizes societies– Joint work of scientists, engineers directly impacted society– Machines allow humans to change environment radically– Machines allow humans to make up for environmental shortcomings