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Written Report in History Of Europe Topic: Chapter 6 Mercantilism and the Rise of Capitalism; The Industrial Revolution

Submitted by: Irene F. Mendoza III-16 BSE History

Submitted to: Dr. Martin

 Theme
In the last part of 18th century, a political and social revolutions began in Frace and swept across Europe. During the same period, an economic revolution a revolution in industry was transforming life in Great Britain. In 19th century these changes in industry spread to other parts of Europe. Once started the process of industrilization moved faster and faster and dramatically altered the way people lived. Industrial Revolution was the result of many factors especially in agriculture and advances in technology. Machines began to replaced human labor, factories replaced system of producing goods and improved methods of transportation and communication were invented Industrial Revolution was given birth by the growth of commerce, development of capitalism, the introduction of improved technology and the unique political climate in Britain durinf 18th cebtury changed the life of western Europe. Its spread brought the changes in social, political and economic. It allowed people to alter their physical environment made possible the highest standand of living yet known and speeded up social and political reforms.

Main events
The commercial revolution For over 150 years after Clumbus discovered the Smericas for the Europeans thousands of tons od silver and nearly two hunded of tons of gold came to Spain from the riches of the Conquered Native Americas and from the mines establishedby the Spanish Colonials. Inflation too much money chasing too few foods- resulted because while the money supply had vastly increased, productivity had remained stable. The inflation stimulated production though because craftsmen, merchants and manufacturers could get good prices for their products. The middle class, the bourgeoise acquired much of this wealth by trading and manufacturing and their politival influence and social status increased. Peasant farmers benefited when their surplus yields could be turned into cash crops. The nobility, whose income was based on feudal rents and fees, actually suffered a diminishing standard of living in this inflationary economy. The Rise of Capitalism Capital is another term for surplus money: instead of investing labor an individual invests capital in some venture in order to make profit. The bourgeoisie, having accumulated more money than was needed to maintain a decent standard of living in

16th and 17th centhury society, used money to make money. They invested in chartered companies that were given a monopoly of trading rifgts by the state within a certain area: in joint-stock companies which sold share od stock publically in order to raise large amounts of various ventures, provided limited liability to the shareholders and offered a profitable return for the original investement enabled more investment. The expansion of money created porsperity, advanced science and technology, and supported the growth of nation-state. Mercantilism The monarchs of the early modern period needed money to maintain the standing armies that would dominate the powerful nobles of the realm and protect the state against foreign enemies. The commercial revolution and the growth of capitalism enriched a sizable segment of the publication: personal riches translated into good tax revenues. Mercantilism prevailed in the 17th and well into 18th century as an economicpolicy because it seemed to offer a way for the monachs of Europe to consolidate their centralized authority. The goal of mercnatilism is the national economic seld- sufficiency Overseas coonization was encouraged by the policy of mercantilism. Spain and Portugan, following up on the momentum of their early explorations to Asia around the African continent and to the Americas across the atlantic, monopolized colonization in the 16th century. By the 17th century, the balance had shifted to the Dutch, French and English, whosw internal disorders of the previous century stabilized and whosw inroads in Asia and North Amricaovercame the supremacy of the spanish and Portuguese. The english colonial empire far surpassed that of any other European nation because its colonies attracted proportionately more of its subjects foe settlement and because a number of them became powerful independent states: India, Canada, Australia, and a number of other nations in Asia and Africa. The Industrial Revolution The Industrial Revolution began in the Great Britain because of the combination of the conditions that existed in Great Britain 1. Labor Supply Britain had an abundant supply of labor. Workers were available as result of changes that had taken place in agriculture. 2. Labor Supply- britain had large resources of coal and iron ore. From its colonoes Britain obtained other resources particularly cotton to use in the textile industry. 3. Investment Capital Britain had capital available for investing in new industries. Funds came who had grown rich through trade. Interest rate on loans fell in the 18th century thus encouraging investment.

4. Entrepreneurs Bitain had energetic and daring entrepreneurs- people who organized and managed businesses. These entrepreneurs built factories, fund effective ways to organize the production of goods and located new markets. 5. Transportation Britain had many fine harbors as well as extensive canal system of transportation made it easy to carry raw materials to factories and goods to markets. 6. Markets Great Britain and its colonies overseas provided a good market for the sale of manufactured goods. The nation had long tradition of trade by sea and it also had a fleet of merchant ships that could transport goods to other countries and bring back raw materials. It began in Britain in the second half of the 18th century: moved to France, Holland , Belgium and the United States in the second decade of the 19 th to Germany, Austria. Italy in the middle of the 19th century to Eastern Europe and Russia at the end of the 19th to parts of Asia and Africa wel into the 20th and it continues. The agricultural revolution in England After the glorious revolution of 1688, English landowning aistocrats dominated Parliament ans passed the Enclosure Actswhich fenced off the medieval common lands. Technological advances Inventions of new machinesand improvement of production processes throughout te 18th century made large-scale productin possible in textile manufacturing and coal mining. The steam-engine revolutionized transportation. The early steam engines-such as Newcomens clumsy comtraption that employed a maze of rods and leather straps converted heat from burningcoal into motion and were employed as pump mines and eventually they were used to drive textile machiney. Textiles The flying shuttle cut manpower needs looms in half. The spinning jenny mechanized the spinnng wheel. The water frame improved thread spinnning. Use of the steam engine pwered the looms and required factory of textiles. The cotton gin separated seed from raw cotton fiber and increased supply of raw material. Coal

Steam pump (thomas Newcomen, 1702) rid coal mines of water seepage Improved pump (James Watt, 1763). Plentiful coal boosted iron production and gave rise to heavy industry (the manufacture of machinery and materials used in production). Transportation The steamship (Robert Fulton, American, 1807) and the railroad steam engine (George Stephenson, 1829) enhanced an already efficient system of river transportation that had been expanded in the 18th century by a network of canals. Together they opened new sources of raw materials and new markets for manufacted goods, and they made it possible to locate factories in population centers. The railrod building boom from 1830- 1850, brought about masive social and economic changes in the largely agrarian economy in England. The ease of transport encouraged rural workers to move the cities: the lower costs of shipping goods in bulk fostered expanding markets. Agriculture Jethro Tull - invented mechanical drill that made holes in the soil and dropped seed in them. Robert Bakewell set- up scientific breeding program that produce cattle with more meat, sheep with finer shool and cow with better milk. Charles Townshend grow turnip which could be stored to feel livestock to feed livestock during winter. Oil By the end of the 19th century, the refinement of petroleum allowed its use as a fuel for the newly developed internal combustion engines that propelled automobiles, locomotives and even ships and for heating and inductrial processes.

Personalities
Theories of Economics Adam smith the first modern economist. His Wealth of Nations has been called the Bible of Capitalism and is the foundation for classical or laissez-faire economics, which oppossed the regulations imposed by mercantilism by arguing that certain natural laws,

such as supply and demand govern an economy and should be free to operate. If people follow the economy, this private initiative will results in benefits to all society. Thomas Malthus Was the first of the classical economist to try to explain why the mass of the people did not benefit fron the operation of the natural laws of economics. Poverty existed, he said, because population increased at a geomteric rate while the food supply increased arithmetically. He believed that poverty was a divine punishment for humankinds lust. David Ricardo Introduced the Iron law of wages: the natural wage is that which maintains a workers subsistence. When labor is in demand, though the wage will increase, the worker will prosper the size of families will increase and the general population will grow. The result will be more workers competing for fewer jobs and inevitable starvation. Robert Owen A scottish textile manufactures whose humane working conditions- shorter workday, decent housing, free education served as a model for capitalists who wante dto make a profit without exploiting workers Karl Marx His communist Manifesto written with Friedrich Engels during the Revolution of 1848, calls for radical solutions to the dillemma of mass poverty in the industrialized world. Das Kapital, the first volume of which was published in 1867, offers a complete analysis of capitalism. Marxs theories Hegelian dialectic (so named after the German Philosopher Georg Hegel) : (in every historical period a prevailing ideal, thesis, conflicts with an opposing ideal, antithesis and results in a new ideal, synthesis. This becomes the thesis of the next period and the process continues. Dialectical Materialism: Marx adapted the Hegelian dialectic to argue that society is a reflection of economics. Hisory progresses from the agrarian communalism, to slaveholding, to feudalism, to bourgeois commercialism, to capitalism, to socialism and finally to Communism ( a classless socity in which the workers own the means of production and government is unnecessary). Class Struggle: the dominant class is every society- slaveholders, feudal lords, capitalist- is a thesis with an antithesis-slaves, serfs, workers- that will overthroe the old order.

Inevitable Revolution: this is the result of the capitalists increasing profits by lowering the workers wages for labor to the point that the proletariat cannot afford to consume the products of manufacture (surplus-value theory). Economic depression occurs and lays hardship on the working class until it carries out a revolution. A dictatorship of the proletariat will establish a socialist government o wipe out capitalism Communism: The withering away of the state will follow, whereby private proprty will cease to exist and economic exploitation will stop, ending ceimr, vice and injustice; democracy will prevail on local level; Utopia, a perfect society will result.

Important resources
The technological revolution Around the last thrid of the 19th century, the applications of the science to industry brought about a radical change in the way Europeans lived. Mass production lowered the cost of goods became part of the mass market. Smaller companies merged and consolidated until whole industries were dominated by big business. High wages in the cities caused a population shift from the countryside. Electricity and the internal combustion engine not only increased productivity but improved the quality of life Results of Industrial Revolution The most significant result was the increased production and availability of the manufactured goods. Material prosperity increased because there were cheaper highquality goods and because increased consumption led to more jobs. Factory workers lived in poverty on the subsistence wages, in dismal tenements, entire families-including children from age fives up- working fourteen hours a day under unsafe and unhealthy conditions. Crowded slums were worsened by the absence of services in cities that had expanded too rapidly. Although thse living conditions did not differ much from those under whivh people had lived for centuries on farms, the concentration of the population made them appear worse. This visibility led thinkers to pondr the causes of poverty and prompted the institutions of society to push for its alleviation. The Sadler Commission helped initiate legislation to improve working conditions in factories

Industrial Revolution changes working and living conditions. Factory wokers face hardships. The factory system produced goods efficiently but was a hard way of life for most workers. Wages were generally low, and employment was never secure. Sick workers recieved no pay and were often fired. Elderly workers had their pay cut or lost their jobs. During business slumps employers lowered wages and laid off workers with women and children who were paid lower wages. City living present problems. The industrial revolution led to rapid urbanization, the growth of urban areas that results from the movement of more people to cities. Because of technological advances, fewer workers were needed in agriculture. Farm families that could no longer make a living in the countryside moved to the city to find jobs. Effects on Glass and Gender Two new classes developed as a result of the Industrial Revolutionindustrialist/capitalists and factory workers. The competitive nature of the markets led many of the factory owners to offer low waged for long hours, create poor and unsafe working conditions, and to employ child labor. The rigid discipline of factory work contrasted with the rural pace of the farm work most of the laborers had been accustomed to; and not until the mid-19th century did the standard of living improve for the average industrial worker. Child labor laws were enacted after the first three decades of the 19 th century to limit the number of hours children could be required to work, and a sexual division pf labor emerged. Men became the main breadwinners while married women tended to stay home to raise the childre. Jobs available to women were dead -end and poorly paid. The early attempts of workers to organize were met wit hostility from industrialists, antiunion regulations from governments and very limited success.