HIS109Y1 Lecture 24: LECTURE 24
18/01/2016
Lecture 24
The Industrial Revolution
PHYSIOCRATS
ADAM SMITH, THE WEALTH OF NATIONS (1776)
JAME“ HA‘G‘EAVE“ “PINNING JENNY
RICHARD ARKWRIGHT (D. 1792)
JAMES WATT (D. 1819)
• Conclusion was to wipe away the political and social insanity of the ancienne regime
• Keeping with the economic environment—so the economy operated according to a
series of laws
• Ada “ith ast a tpial eooist
important work was done at cocktail parties
wrote a book on laissez-faire capitalism
provided a bible for economic thinkers that was powerful
• supply-demand competition (argued in favor of a new kind of an economic system)
• close relationship between the urban classes and the land-holding nobility
• only one member of the family could be noble by definition
• no problem with elder brothers/fathers engaging in stock
• self-iteest die eed to ake oes o a i life
• people were able to respond to opportunities in ways that their continental associates
never could
• scientific experimentation and speculation
• religious intolerance
• big universities required professors to be of religious orders
• people asked ho as god speakig to the though atue?
• studied practical subjects such as engineering, science (in particular)
• England was at an advantage in Europe, due to intellectual freedom and challenging of
the status uo that othe outies didt hae
• Before France was a great giant, England was small, agricultural (so people thought
that France would be the great nation of the 19th century—but by 1950s, England was,
due to the industrialization of the nation)
• England was strong
International trade
Monetary gain
Education
• Plague in England towards the middle of the 17th century, varied diets due to food
production
• Money was available in England unlike anywhere else, due to an economic experiment
from the foundation of Bank of England in 1694
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Document Summary
Capital was made available to investors and entrepreneurs at reasonable costs, safe, low-risk. I(cid:374)te(cid:396)est (cid:449)as(cid:374)(cid:859)t (cid:271)ad, (cid:272)u(cid:396)(cid:396)e(cid:374)(cid:272)(cid:455) de(cid:272)ided (cid:271)(cid:455) (cid:271)a(cid:374)k leaders. Di(cid:396)e(cid:272)ted the (cid:374)atio(cid:374)al e(cid:272)o(cid:374)o(cid:373)(cid:455) at a(cid:396)(cid:373)(cid:859)s le(cid:374)gth f(cid:396)o(cid:373) go(cid:448)e(cid:396)(cid:374)(cid:373)e(cid:374)t. Allowed for investors to have a leg in capital and have a reasonable rate of return on their investments: revolution of 1688 left england at internal peace, a new economic policy developed. Ideas (cid:449)e(cid:396)e(cid:374)(cid:859)t t(cid:396)(cid:455)i(cid:374)g to get a(cid:396)ou(cid:374)d a(cid:374) (cid:858)a(cid:271)su(cid:396)d(cid:859) state. Imagination and energy put toward useful goals every continent. It(cid:859)s the dis(cid:272)ipli(cid:374)e a(cid:374)d pu(cid:396)poseful o(cid:396)ga(cid:374)ization of the elements of production directed towards production of goods to be sold. Raw materials, capital and labour are the elements of production. All of these things must exist in concentration need all three in considerable amounts in one place. Efficiency and profitability is completely driven by quality of labour, effective control and management. Discipline and skill of the entire operation towards clearly defined and recognized goals.
