Britain was the first to create the patent system – categorizing intellectual property,
allowing people to capitalize off inventions
Changes in the world of labour
Machines now located in factories, generally located around rivers or other bodies of
water, replacing smaller mills
Employed women and children – cheaper than men
Factory is responsible for urbanization, which gives rise to the city.
Canals & Rivers
used as a means of internal transportation
Financial backing came from merchants and industrialists who wanted to expand
England's extensive internal rivers into navigable canals
By 1800 there were 200 miles of tramways serving coal mines.
Engineers looking to tie steam engines to railways for transportation.
New wealth grows from Industrial Revolution
Two kinds of capital are needed
1. Long-term capital – expand present operations
2. Short-term capital – purchase materials, pay wages
•Trying to find short-term capital to pay their employees was a major problem, which
gave rise to the Banking System
Private banks spring up, funded by people who have mae money in manufacturing
•Impact on human life
Conditions in cities were bad, but work conditions were worse
Poorly ventilated, noisy, dirty, dangerous, unhealthy
workers put in 12-14 hours a day, and overtime during busy periods.
Machines dangerous and untrained workers incurred accidents and deaths with no
18th century saw the highest growth ever
•Decline in death. increase in birth, elimination of plague, increase in food
Industry provided higher wages than in villages – young people were able to marry early,
producing more children.
Cities provided better clothing and housing, but terrible living conditions.
Terrible conditions lead quite quickly to social reform in Britain, number of laws were
enacted to combat these humanitarian problems.
Unionization becomes important – has the power to cease production if demands aren't met.
However, it is easy to replace unskilled workers. Some of the most successful unions were of