Development of capitalism during the industrial revolution created by erika arellano
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Development of Capitalism during the Industrial Revolution Created by: Erika Arellano. Industrial Revolution refers to the greatly increased output of machine made goods Began in England in the 1700’s Why did it begin in England? It had natural resources such as:

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Development of Capitalism during the Industrial Revolution Created by: Erika Arellano

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Development of capitalism during the industrial revolution created by erika arellano

Development of Capitalism during the Industrial RevolutionCreated by: Erika Arellano


Development of capitalism during the industrial revolution created by erika arellano

Industrial Revolution refers to the greatly increased output of machine made goods

Began in England in the 1700’s

Why did it begin in England? It had natural resources such as:

Water power and coal to fuel the new machines

Iron ore to construct machines, tools and buildings

Rivers for inland transportation

Harbors from which merchant ships set sail

http://www.historyguide.org/intellect/lecture17a.html

Industrial Revolution1700-1900


Innovation created during industrial revolution

Spinning Jenny

Flying Shuttle

Cotton Mills

Steam Engine

Factories

Innovation created during Industrial Revolution


Ideas of adam smith

Believed in free economy, or free markets

Wrote book The Wealth of Nations

Economic liberty guaranteed economic progress

Three Natural Laws of Economics:

Law of Self Interest: People work for their own good

Law of Supply and Demand: Enough goods will be produced at the lowest possible price to meet demand in a market economy

Law of Competition: Competition forces people to make a better product

Ideas of Adam Smith


Thomas malthus and david ricardo

Smiths ideas influenced Malthus and Ricardo

Believed that natural laws governed economic life

Opposed government efforts to help poor workers

Their ideas formed the foundation of laissez-faire capitalism:

http://www.importanceofphilosophy.com/Politics_LaissezFaire.html

Thomas Malthus and David Ricardo


Capitalism

Economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit

Replaced feudal empires (i.e. Holy Roman Empire) and monarchies

Created markets where buyers and sellers of goods and services agreed on prices

Created market types:

Competition

Monopoly

Oligopoly

Long distance trade increased dramatically due to innovation in transportation

Capitalism


Capitalism continued

Individuals and businesses own property and the mean of production.

Progress results when individuals follow their own self interest.

Businesses follow their own self interest by competing for the consumer’s money. Each business tried to produce goods or services that are better and less expensive then those of competitors.

Government should not interfere in the economy because competition create efficiency in business.

Capitalism continued


How did capitalism bring about the industrial revolution

The connection is that it:

Led to investing in factories

Led to increased production and higher demands for raw materials

Led to world wide trade

Led to new inventions and new innovations

Led to changes in transportation, agriculture, and communication

How did capitalism bring about the Industrial Revolution?


Spread of industrialization 1850 1914

Spread of Industrialization1850-1914


Global diffusion of the industrial revolution

Global Diffusion of the Industrial Revolution


Summary of institutional capitalism

English Parliament was firmly under the control of the capitalist classes.

Increase in agricultural production and turned the established rules of land ownership on their head.

Lands previously held in common by tenant farmers changed into large private farms, worked by a smaller labour force. This increased the agricultural production and caused the displaced peasants to head for the cities. Subsequently, there was an abundant labour supply to mine coal and iron, and man the factories.

The revolution moved economic power away from the aristocratic classes and into the hands of the new middle class, the bourgeoisie.

Summary of Institutional Capitalism


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