1) Great Britain was the first to industrialize…

1. 1) Great Britain was the first to industrialize… • other nations will soon follow, throughout the 1800’s: • - U.S. • - Belgium • - Germany • - Italy (northern) • - Russia • - France • - Japan

2. … also industrializing, but much more slowly: • - Spain • - Austria-Hungary • - Bohemia (today: Czech Republic)

3. 2) Each of these nations possessed common factors of production, to varying degrees: - Resources (rivers, coal, iron ore) - Labor force - Entrepreneurship (inc. British emigrants, other nations sending their youth to British universities) - Government encouragement & investment (i.e infrastructure - esp. railroads). MELTING!

4. 3) Early U.S. industrialization (early 1800’s): • - Resources (rivers, coal, iron ore) • - Growing labor force (women leaving farms; immigrants) • - Entrepreneurship of British emigrants w/ expertise in textile production (i.e. Slater, Lowell) • - War of 1812: British blockade of U.S. coast encouraged domestic economic independence & entrepreneurship.

5. 4) U.S. industrialization: - Began in the Northeast (New England) - U.S. industrialization dramatically increases after the Civil War (after 1865).

6. 4) Post Civil War U.S. industrial growth dramatically increases (cont.): - Increasing utilization of more resources (coal, iron, OIL) - Growth of inventions & innovations (light bulb, telephone) - Rapidly growing immigrant population in cities = inexpensive labor pool + more consumers. - Dramatic increase in railroads & city growth as transit points for flow of raw materials and finished goods.

7. 5) Businesses get bigger, stronger: the CORPORATION Businesses sell SHARES of ownership (STOCK) to raise CAPITAL for growth. Corporate charter granted by the state. - Benefits to investor (shareholder):  Entitled to share of profits (or loss), proportionate to # of shares owned, w/ returns via increased stock value or paid dividends.  Not personally liable for debt or litigation  Limits risk only to amount of investment - Benefits to corporation:  raise more capital w/ less debt  spreads risk across many investors  limits liability (but establishes reporting standards & disclosure requirements)  As corporations get larger, they get more powerful, economically AND POLITICALLY

8. 5) Corporations (cont.): • Corporate goal: maximize… • … PROFIT • … control of an entire industry • As major producers (and employers), corporations can historically demand longer hours and lower wages, to provide shareholders w/ larger profits (further encouraging more investment). • Ex: Standard Oil, • Carnegie Steel

9. 5) Corporations (cont.) - Corporate power: • - Corporations have limited liability for potentially abusive and immoral practices, AND are “people” with constitutional rights • - Can become “too big to fail” (immortal “people”?), as large employers and major drivers of the economy • - Money = speech = disproportionate influence over electoral politics (voter messaging, candidate spending,) lobbying, public policy

10. 6) Turmoil in Europe = a head start for Britain: • - French Revolution (1789-1799), giving way to… • - Rise of Napoleon, Napoleonic Wars (1800-1815) • … both will bog down continental Europe in war & instability, delaying industrial growth for the rest of Europe, while allowing Britain to build an early economic lead.

11. 7) German industrialization (achieved by late 1800’s): • Disadvantages to overcome (early 1800’s): • - Politically divided = no cohesive government or economic policy (multiple small German kingdoms will not unify as a nation until 1871) • - Scattered resources & isolated pockets of production (+ lack of infrastructure to link resources, production, & markets) • German Industrialization takes off: • - Copies UK entrepreneurial model (imports technology, sends Germans to UK for industrial education) (beg. 1835) • - Massive investment in infrastructure (esp. railroads) to link resources, cities, and markets

12. 7) German industrialization achieved, late 19th century: • - Politically unified = strong government support • - Growing military = security, protection, expansion • … ALL the factors of production are coordinated (“MELTING”) • … Germany will rival Britain as an industrial and military power (beg. 1884).

13. 8) Japanese industrialization (late 1800’s): • - Change in political leadership in 1868, followed by significant public (government) investment in factors of production to encourage private enterprise (“MELTING”) • - Like other industrial nations, Japan then invests in a MILITARY build-up, and becomes increasingly IMPERIALISTIC (taking what they need from other nations, rather than trading for it).

14. 9) Global impacts of expanding industrialization: • - Increased trade and interdependency among nations – both rich and poor, producers and providers (of resources and labor) = GLOBALIZATION • - Increased economic competition and international tension • - Increased poverty and exploitation of underdeveloped nations • - Growing wealth gap (GDP) between industrial and nonindustrial nations

15. 10) Imperialism: When a nation controls other nations for economic, political, and/or military gain. 11) Growing industrialization (and international competition) increases demand for: - RESOURCES (inc. raw materials AND cheap labor) - MARKETS (consumers) Any nation can acquire both of these via trade; militaristic & imperial nations can acquire both by force, further gaining an unfair competitive advantage over other industrial nations.

16. Increasing industrialization & global competition: • Britain  • US  • Germany   • France  • Belgium  • Italy  • Russia   • Japan  • … ALL will industrialize, militarize, and imperialize in the 1800’s… what will this lead to in the 1900’s? • WORLD WAR I… and WORLD WAR II

18. 12) Industrial nations gain wealth and health, • and a growing middle class. • A growing middle class will lead directly to: • - expanding educational opportunities • - democratization • People will gradually become more informed, affluent, comfortable, and will demand an increased political voice in their lives… leading to an end to monarchy as a dominant political system!