CM n°1 ECONOMIC POLICIES
The workshop of the world : the birth and the growth of economic liberalism Industrial revolutIon: term usually applied to the social and economic changes that took place during the mid 18th-19th century. These changes marked a transition from an agricultural and commercial society to a modern industrial society There has been an objection to this term.Some historians feel that “revolution” can not be applied to these changes. Dramatic changes during this period: economic sector, technological innovations which permited the creation of the factory system and throug the factory system marked the start of economic specialization. Factors of success: men/ machines/ money/ means of communication/ mentalities. MEN -demographic change -the dvpmt ofthe population was one of the basic factors of growth - if there were no men, there was no one to work on the machines -the growth was partly due to the decline in the death rate but mostly to the increase in the birth rate. -the population of great britain 7 million and half in 1750 10 800 000 in 1801( first census) 23 100 000 in 1861 - this population boom had consequences: there were moremouths to feed, and more people to dress, in general there were more needs to satisfy due to an increase in demand. - The demographic explosion was at the root of victorian prosperity. - More people=> more hands to work in the factories - Rapid growth of pple and towns in the Midlands=< provides great labor force and growth in urbanisation -1801 17% of the pop of england and wales lived intowns(ie: more than 20,000 inhabitants) -1851: 35% in towns 1901: 50yrs later, 55% in towns -MONEY -the dvpmt of the banking system(dpmt of banks) -mid 17th century=> civil war=>merchants and tradesmen afraid for their money=> gave their money to goldsmiths who had storerooms=> goldsmiths started to lend money to pple in need, included interest=> interest was handed out to the goldsmiths -1764: the Bankof England -During the 18th century: creation of priate banks -1815: 600 banks existed=> played a crucial part in the dvpmt of industry=Bank’s charter Act=> the bank of england was divided in 2=> the first part was dedicated to the issue of bank notes and he second to banking business. -2nd change: creation of joint stock banks( sociétés de dépôts), it was created in 1833, and the goal being toallow pple to buy shares in companies with their savings and become shareholders=> risk!!! -Joint Stock Companies Act created a system called “limited liability”, if companies went bankrupt=> loss of money but not loss of responsibility -5 big banks drained the money of investors and helped build big factories: Lloyds, Midlands, Barcleys, National Provincal, Westminister. MACHINES Science andtechnology were cery close=< lots of inventions in the 18th century -Mecanization of production=> increase in the output=>the more mecanized, the more productive. -the importance of the Steam machine=> steam replaced water as a source of energy, this meant that the industry no longer had to be close to water. -in order to provide steamn coal mines became essential -the Blanck country=> area in theMidlands grew around coal. -Navy’s safety lamp=> allowed miners to go deeeper in the mines. Machine tools invention=>made mass-production possible=> machine that makes standardized parts. MEANS OF COMMUNICATION 19th century=> the telegraph and the post. The telegrapg was first patented in 1837 and taken over and supervised by the postoffice. - in 1866, the first great atlantic cable was laid at thebottom of the atlantic ocean and it connected england to america. - 1870: england linked to india - 1840: “the penny black”: 1st stamp ever priduced showed the queen’s profile. MENTALITIES -Broadening ideology, influence of a new theory of economic progress called free trade and religion. -the British=>protestism(never been opposed to material success). Since Max Webber, it has become customary to...
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