Connections to Over-Arching Thesis • Section I & II: The right conditions allowed for the expansion of several markets, including the cotton industry which led to remarkable mechanization and profits. • Section II & III: With the massive development in colonial trade, the Cotton Industry became incredibly profitable. The previously relied upon “Putting-Out” system was no longer the most obvious means of Industrial Expansion, allowing factories to serve as a replacement, thus necessitating Railways. • Section III & IV: Expanding markets and industries tempted the wary investors into even uncertain markets, allowing already promising economic conditions to be the foundation for astronomical growth to come. • Section I & IV: Cotton, iron and transportation are greatly linked because they all help each other grow and be in need of purchase.
Section I: The Over-arching Thesis& The Connection: Cotton & Iron • Over Arching Thesis: The Take-Off: Self Sustaining Growth, The Right Conditions, and Investment allow for the astronomical revolutions in industrial fields. • The Industrial Revolution did not "explode"; more of a gradual happening. • If a specific time had to be pinpointed, it would be the 1780s (even 20 years up to 1800s; the French Revolution) • Still happening to a certain degree • Initiated by Britain, it was already ahead of other countries in its "per capita output and trade" • No kings (who would take most of money for themselves, and would be dictator-like) • Private profit and economic development were key goals for the government. • The machines made were not overly complex (James Watt's rotary stem engine-1784) • Agriculture had new tactics • Increase production & productivity (to prepare for people that were not going to be farming anymore, but building or working machinery) • To recruit people and get others to take over farming when soon it would all be industrial. • To find a way to reap the profits and distribute them to other parts of the economy. • Really "took off" due to entrepreneurs and investors • In order to have a revolution, a world market was needed, with a "base nation" (Britain) • Other countries could enjoy benefits the of the British economic expansion • Soon, the tactics the British used could be used and imitated by others, as an example.
Section I: The Over-arching Thesis& The Connections (cont.) • The Ideal Conditions/Structure: aka the British Way • Private Profit and economic development prioritized and accepted as the ultimate object of government policy. • Commercially minded landlords (investors) • Manufacture diffused through an non-feudal country side • Agriculture prepared to carry out its 3 fundamental functions: • To increase production & productivity in order to sustain an ever increasing non-agricultural population • To provide a large and rising surplus of potential recruits for the towns and industries • To provide a mechanism for the accumulation of capital to be used in the more modern sectors of the economy --Money not only talks, but governs. In other words, empower the Investors and those in power, investment will follow and exalt the more non profitable but extremely beneficial industries such as railways and colonial expansion.
Section II:The Connection: Iron & Transportation • Sub-Thesis: The incredible sales were a result of the export market trumping the home market. • Colonial Trade sparked the rapid and sustained growth of the cotton industry, and a domino effect continued to ensue. • The profits were “astronomical” • A monopolized the market, such as the British Cotton Industry, allowed for virtually limitless profits and prospects. • Private entrepreneurs were tempted into the adventure of industrial revolution by the auspicious cotton industry, fortunately supported and necessitated by an sudden expansion
Section IIIThe Connection: Transportation & Markets • Sub Thesis: The industrialization of the cotton industry helped to speed up Britain's industrial revolution. • The cotton industry was among the first to set up factories. Much more cotton was now sold, and at a much cheaper price. • Cotton was now present in every household, and the cotton industry was very intertwined with the economy. • The amount of raw cotton imported into Britain rose 577 lbs from 1785 to 1850 and cotton manufactures formed between 40 and 50% of the value of British exports- if the cotton industry flourished, so did the economy. • The success of the cotton industry helped capitalists feel less at risk when investing in machinery which encouraged revolution.
Sub-thesis 2, Section IV: Cotton, Iron, & Transportation • Sub Thesis: Cotton Industry incited to innovations with Iron and the incorporation of the Railroad system led to • Iron: The production of iron was not very high because there wasn’t a very high demand for it. The only times it was really needed was in times of war. But, when the construction of railroads began, the demand for iron was very high. The demand for a new form of transportation was needed in order to distribute goods; one of the main goods was cotton. • Cotton: Cotton was needed to be distributed all over the country because it was used for clothing and other goods; the cotton industry was very successful. The cotton industry is one of the main reasons the economy and market were doing so well. This meant that the government and the upper classes had enough money to invest in and fund the transportation, or railways. Even though the railroad’s were a risky source of transportation to invest in, due to the fact that other forms of transportation were more highly used, the government and upper class still invested in them because they had enough money to do so. They did this not only because they had enough money, but also because they needed the cotton to be distributed. Railways were built thanks to the cotton industry. • Transportation/Railways: Railroads were needed to be constructed in order to deliver cotton which then called for more production and use of both iron and steel which increasingly helped the iron industry. They were able to be built due to the cotton industry and the success that it brought to the market.
Significance • Irrationality: How can markets that are so uncertain provoke investment? • The ground breaking, incredible aspects of the new transportation market invited prescient investors who from industries like cotton had a surplus of funds to reinvest and mechanize other fields. • If people did not invest, the market and their lives would ultimately go downhill and that people had extra money from cotton to invest into machinery/railroads • World Market: Expanding the market and allowing increased access to products and productions allows for self sustained growth and astronomical expansion.