The Origins of the Industrial Revolution in America

The Origins of the Industrial Revolution in America

George S. Vascik Miami University Hamilton

The Industrial Revolution

The Industrial Revolution • Definition – Preconditions – Process – Results

The Industrial Revolution • Definition – Preconditions – Process – Results

• The American experience before 1860

Definition

Definition • Began in Britain circa 1750, with production of cloth and pottery.

Definition • Began in Britain circa 1750, with production of cloth and pottery. • Accompanied by a huge increase in output per capita.

World Gross Domestic Product

World Gross Domestic Product

Definition

Definition • Began in Britain circa 1750, with production of cloth and pottery.

Definition • Began in Britain circa 1750, with production of cloth and pottery. • Accompanied by a huge increase in output per capita.

Definition • Began in Britain circa 1750, with production of cloth and pottery. • Accompanied by a huge increase in output per capita. • Profoundly changed society and politics.

Definition • Began in Britain circa 1750, with production of cloth and pottery. • Accompanied by a huge increase in output per capita. • Profoundly changed society and politics. • Concentration of production in factories.

The concentration of production in factories

First chart

long term

preconditions

The concentration of production in factories

short term

First chart

long term

preconditions energy capital labor

The concentration of production in factories

markets laws ethos

First chart

short term

Energy

Energy • Prior to 1760, most energy was animal – Human – charcoal

Energy • Prior to 1760, most energy was animal – Human – charcoal

• Innovations in steam technology – Newcomen, Watt, Stephenson

Energy • Prior to 1760, most energy was animal – Human – charcoal

• Innovations in steam technology – Newcomen, Watt, Stephenson

• Development on coking technology

Capital

Capital • Where did the money (capital) to invest in new machines and factories come from? – Agricultural revolution – Commercial revolution • Banks • Colonial trade – Sugar – slaves

Labor

Labor • With the Agricultural Revolution and then the increasing mechanization of farming, fewer hands are needed in the fields

Labor • With the Agricultural Revolution and then the increasing mechanization of farming, fewer hands are needed in the fields • This freed up surplus labor to work in the factories

Markets • Home market – The area within a single legal and customs zone

• Consumers – Disposable income – Luxuries – Common commodities

Laws • It is impossible to underestimate the importance of a secure legal environment the recognized contract and the right to property • The British and the Dutch led the world

Ethos • Max Weber (18641920) – The Protestant Ethic and the Spirit of Capitalism – General Economic History

• Werner Sombart (1863-1941) – Modern Capitalism

preconditions energy capital labor market ethos

Short term

The concentration of production in factories

preconditions energy capital labor

The concentration of production in factories

market ethos

Short term

short term

preconditions energy capital labor

The concentration of production in factories

market ethos

short term shift in population shift in wealth boom and bust shift in power

Short term

Urbanization • German cities over 100,000 population – 1800 = 8 – 1900 = 33

• By 1860, 16% of the American population lived in cities • 300,000 immigrants arrived annually

Chicago, 1820-1898

Chicago, 1820-1898

1820 - 15 people

Chicago, 1820-1898

1820 - 15 people 1854 - 55,000 people

Chicago, 1820-1898

1820 - 15 people 1854 - 55,000 people 1898 - 1,689,000 people

Business cycle

Business cycle

Business cycle

Panics

Panics • Cyclical downturns – These were known as “panics” – Highly politicized

Panics • Cyclical downturns – These were known as “panics” – Highly politicized

• 1837, 1857, 1873, 1884

Shift in power relations

Shift in power relations • Capitalist and noble

Shift in power relations • Capitalist and noble • Worker and owner – Jacksonian class conflict – Whig class concord

Shift in power relations • Capitalist and noble • Worker and owner – Jacksonian class conflict – Whig class concord

• Urban and rural – Agrarian versus industrialist

preconditions energy capital labor

The concentration of production in factories

market ethos

short term shift in population shift in wealth boom and bust shift in power

Full chart

long term

preconditions energy capital labor

The concentration of production in factories

market ethos

short term shift in population shift in wealth boom and bust shift in power

Full chart

preconditions

long term

energy

modern city

capital labor

The concentration of production in factories

market ethos

short term shift in population shift in wealth boom and bust shift in power

Full chart

increased wellbeing regulated economy family patterns and life span

- sharp increase in per capita productivity - improved standard of living - creation of a global economy preconditions

long term

energy

modern city

capital labor

The concentration of production in factories

market ethos

short term shift in population shift in wealth boom and bust shift in power

Full chart

increased wellbeing regulated economy family patterns and life span

American in Comparative Perspective

Ante-Bellum American growth

Ante-Bellum American growth • Population growth – Birth rate 2x Europe – Lower death rate – immigration

Ante-Bellum American growth • Population growth – Birth rate 2x Europe – Lower death rate – immigration

• Urban growth (towns > 2500) – 1810 - 6% – 1860 - 20%

Ante-Bellum American growth • Population growth – Birth rate 2x Europe – Lower death rate – immigration

• Urban growth (towns > 2500) – 1810 - 6% – 1860 - 20%

• Income rose 102% between 1810 and 1860

Characteristics of American growth

Characteristics of American growth • Transportation revolution

Characteristics of American growth • Transportation revolution • The “American system of manufacture” – Interchangeable parts – Labor scarcity – High resource endowment

Characteristics of American growth • Transportation revolution • The “American system of manufacture” – Interchangeable parts – Labor scarcity – High resource endowment

• Educational system – Widespread literary in North

Characteristics of American growth

Characteristics of American growth • Fluidity of American class system – Entrepreneurial ethos – Secularized puritan ethic

Characteristics of American growth • Fluidity of American class system – Entrepreneurial ethos – Secularized puritan ethic

• The frontier – “Go West, young man!”

Short Term Results • North – New England, Middle Atlantic and Midwest develop into free labor, advanced industrial and agricultural society.

• South – Plantation-based resource economy, with sharp divisions of wealth and power. – Work habits necessary for industrial success fail to develop.

Long term result

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