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heilmil.ch4

12 overheads of
CHAPTER 4: THE INDUSTRIAL REVOLUTION
 

 INTRODUCTION
 

þ THUS FAR, FOCUS IN ECONOMIC HISTORY HAS BEEN ON
AGRICULTURE & COMMERCE.
 

þ BEFORE 17TH CENTURY, HAVE HEARD LITTLE ABOUT
FACTORY WORKER AND ABOUT INDUSTRIAL CAPITALIST.
 

þ YES, WERE SOME MANUFACTURING FACILITIES IN
ANCIENT WORLD, BUT THEY WERE EXCEPTION RATHER THAN
RULE:

     þ ANCIENT  EGYPT --> FACTORIES FOR PRODUCING
CLOTH.

     þ DEMOSTHENES -- IN ATHENS, GREECE, HAD AN
ARMOR & A CABINET FACTORY.

     þ ROMAN EMPIRE -- 2ND CENTURY AD, A LARGE
ROMAN BRICKWORKS WITH 46 FOREMEN. SUCY\H LARGE
FACTORIES VERY ATYPICAL.
 

þ  MANUFACTURING IN ANCIENT & MEDIEVAL WORLD WAS
FAR LESS IMPORTANT THAN AGRICULTURE AND COMMERCE.

     þ MANUFACTURE --> FROM l. MANUS HAND + FACERE
= TO MAKE --> IMPLIES SYSTEM OF HAND -- NOT MACHINE
-- TECHNOLOGY.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

2
 THE INDUSTRIAL REVOLUTION
 

þ UPSHOT: LARGE MFG'G FACILITIES UNCOMMON IN
ANCIENT & MEDIEVAL WORLD.

     þ MFG'G WAS DONE IN SMALL SHOPS.

     þ IN 1660, STEEL SMITH IN FRANCE -> MAKES
SWORDS, SICKLE BLADES, CUTLERY --> RAW MATERIAL = 3
TONS/YR OF PIG IRON.

     þ UP UNTILL 19TH CENTURY, MOST MFG'G CARRIED
ON IN SMALL SHOPS.
 
 
 

 THE SLOW PACE OF TECHNOLOGICAL CHANGE

þ PRIOR TO 18TH CENTURY, LITTLE INTEREST IN
MANUFACTURING TECHNOLOGY.

þ WITH EXCEPTION OF LEONARD DA VINCI, EUROPEAN
THINKERS IGNORANT & UNINTERESTED IN TECHNOLOGY OF
PRODUCTION.

þ WHY SO? NO MKT FOR MASS=PRODUCED GOODS. WHO WOULD
BUY IN A TRADELESS UNMONETIZED ECONOMY DOMINATED BY
SLAVES, SERFS, AND PEASANTS?
 
 

þ THE PACE OF INDUSTRIALIZATION SLOW UNTIL AFTER
1750:

     þ WATER POWER NOT WIDELY USED IN INDUSTRY TILL
15TH C.

     þ WINDMILLS NOT WIDELY USED TILL 16TH CENT.

     þ NO MAJR IMPROVEMENTS IN INSTRUMENTS FOR
NAVIGATION, SURVEYING, OR MEASUREMENT UNTIL 15TH C.
 
 
 
 
 
 
 
 
 
 

3
 THE SLOW PACE OF TECHNOLOGICAL CHANGE [C]
 

þ TRUE, THERE WERE SOME POCKETS OF FACTORY
PRODUCTION:

     þ FLANDERS CLOTH INDUSTRY -- BEGINS IN
 13TH C.

     þ NORTHERN ITALIAN TOWNS -- CLOTH MFGG.

þ BUT AGRICULTURE REAMINED THE ECONOMIC BASE FOR
MOST COUNTRIES, WITH COMMERCE ALSO SIGINIFICANT.
MFG'G NOT CONSIDERED SIGNIFICANT.
 
 
 
 

 DAWN OF INDUSTRIAL REVOLUTION: ENGLAND IN 1750
 

þ WHY INDUSTRIAL REVOLUTION IN ENGLAND FIRST?
 

     þ ENGLAND WAS REL. WEALTHY DUE TO ITS
       EXPLORATION, TRADE, WAR.

     þ WEALTHY HAD ACCRUED NOT JUST TO NOBLES, BUT
       TO LARGE GP OF COMMERCIAL BOURGEOISIE.

     þ THUS ENGLAND FIRST NATION TO DEVELOP PRIME
       FACTOR FOR LARGE-SCALE MFG'G: A "MASS"
       CONSUMER MARKET.
 

     þ RISING DEMAND --> SEARCH FOR BETTER MFG'G
       TECHNIQUES.
 
 
 
 
 
 
 
 
 
 
 
 
 
 

4

 DAWN OF INDUSTRIAL REVOLUTION: ENGLAND IN 1750
[C]

     þ FORMATION OF SOCIETIES DEVOTED TO SCIENTIFIC
       & TECHNICAL ADVANCE:

          þ SOC. FOR ENCOURAGEMENT OF ARTS &
            MANUFACTURES --> OFFERED PRIZE FOR
           MACHINE TO SPIN 6 THREADS OF COTTON AT
           ONCE --> LED TO ARKWRIGHT'S SPINNING
           JENNY.

     þ ENGLAND HAD UNDERGONE TRANSFORMASTION FROM
       FEUDAL --> COMMERCIAL SOCIETY.

          þ UNLIKE FR. NOBLES, ENGLISH NOBLES
            INTERESTED IN MAKING MONEY FROM THEIR
            LAND.

          þ ENCLOSURE MOVEMENT

          þ NOBLES KEENLY INTERESTED IN
            AGRICULTURAL ADVANCES.
 

     þ ENGLAND HAD MUCH ENTHUSIASM FOR SCIENCE &
       ENGINEERING:

          þ ROYAL SOPCIETY FOUNDED IN 1660.

          þ POPULAR OBESSION WITH GADGETS,
            MACHINES, DEVICES.
 
 

þ OTHER IMPORTANT FACTORS MAKING ENGLAND FIRST FOR
INDUSTRIAL REVOLUTION:

     þ IMMENSE RESOURCES OF COAL & IRON ORE

     þ DEVELOPMENT OF NATIONAL PATENT SYSTEM.
 
 
 
 
 
 
 
 
 
 
 
 

5
 THE RISE OF NEW MEN
 

þ JOHN WILKINSON --> SON OF AN IRON PRODUCER, HE
INVENTED:

     þ ROLLING MILL
     þ STEAM-POWERED LATHE
     þ PROCESS FOR MFG'G IRON PIPE
     þ MEANS FOR MACHINING CYLINDERS PRECISELY.
     þ PUSH THE PRODUCTION OF IRON PRODUCTS -->
PIPES, BRIDGES, SHIPS, ETC.

þ WILKINSON WAS ONE OF MANY.

þ MOST FAMOUS WAS JAMES WATT.

þ JAMES WALL & MATT BOULTON [A MFGR OF BUTTONS &
BUCLKES] FORMED FIRST COMPANY FOR MFG OF STEAM
ENGINES.

þ WATT WORKED AT UNIV OF GLASGOW --> IN 1764,
ENCLUNTERED A NEWCPMEN STEAM ENGINE

     þ WATT HELPED BY WILKENSON'S METHOD OF MAKING
GOOS PISTON-CYLINDER FITS.

þ IN 1786, TWO STEAM ENGINES POWER 50 PAIRS OF MILL
STONES IN LONDON, LARGEST FLOUR MILL IN WORLD.

þ STEAM ENGINE = GREATEST SINGLE INVENTION OF
INDUSTRIAL REV.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

6
 INDUSTRIAL REVOLUTION: ALSO VERY IMPORTANT
INVENTIONS IN TEXTILE INDUSTRY

þ ARKWRIGHT'S SPINNIG JENNY OR WATER FRAME.

     þ WAS A BARBER IN WEAVING DISTRICT OF
MANCHESTER.

     þ HEARD ABOUT NEED FOR MACHINE TO ALLOW
COTTAGE SPINNERS TO KEEP UP WITH WEAVERS.

     þ TEAMED UP WITH CLOCKMAKER JOHN KAY.

     þ TEAMED UPWITH TWO RICH HOSIERS TO PRODUCE
SPINNING JENNIES IN 1771.

     þ BY 1780S, ARKWRIGHT HAD MADE HUGE FORTUNE
 
 

 THE INDUSTRIAL ENTREPRENEUR
 

þ THESE INDUSTRIAL ENTREPRENEURS WERE AN ENTIRELY
NEW CLASS OF MEN

þ NONE CAME FROM NOBLE BACKGD.

þ AGRICULTURE HAD ENJOYED ARISTOCRATIC PATRONAGE.

þ BUT NOT MFG'G. THERE THE LEAD WAS TAKEN BY MEN OF
HUMBLE ORIGIN.

þ SUCH REQUIRED A SOCIAL SYSTEM FLEXIBLE ENOUGH TO
PERMIT THE RISE OF YOUNG ADVENTURERS.

þ THESE NEW MEN WERE ENTREPRENEURS -- ORGANIZERS.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

7
 INDUSTRIAL REVOLUTION: ALSO VERY IMPORTANT
INVENTIONS IN TEXTILE INDUSTRY [C]
 

þ BUT SOME THINKERS INCLUDING ADAM SMITH, WHILE
ACKNOWLEDGING THEIR MERIT, WERE DISTRUSTFUL OF
THEM:

     þ DIATRUSTFUL OF THEIR "MEAN RAPACITY."

     þ "THEY NEITHER ARE, NOR OUGHT TO BE, THE
       RULERS OF MANKIND."

     þ NONETHELESS, THEY WERE ALL VERY INTYERESTED
IN GROWTH AND INVESTMENT.
 
 
 
 

  THE GROWTH OF THE COTTON TEXTILE INDUSTRY IN
GREAT BRITAIN

þ IMPORTS OF RAW COTTON TO GREAT BRITAIN:

     1701 ......  1 MILLION LBS
     1750 ......  3
     1781 ......  5
     1784 ...... 11
     1789 ...... 33
     1800 ...... 56
     1802 ...... 60
 

þ INDUSTRIAL REVOLUTION = THE TRANSFORMATION OF AN
AGRICULTURAL & COMMERCIAL SOCIETY INTO ONE IN WHICH
INDUSYTRIAL MANUFACTURE BECOMES THE DOMINANT MODE
OF ORGANIZING LIFE

þ INDUSTRIAL REV =

     þ CHAR. BY THE RISE OF FACTORY TO THE CENTER
OF SOCIAL & AND ECONOMIC LIFE.
 
 
 
 
 
 
 
 
 
 

8
  THE GROWTH OF THE COTTON TEXTILE INDUSTRY IN
GREAT BRITAIN
 

þ AFTER 1850 IN ENGLAND, THE FACTORY WAS:

     þ THE KEY ECONOMIC INSTITUTION OF ENGLAND

     þ THE MAIN INSTITUTION THAT SHAPED:

          þ THE CHARACTER OF DAILY LIFE
          þ SOCIAL PROBLEMS
          þ POLITICS

þ THE ENGLISH LABORER, USED TO RURAL RATHER THAN
URBAN WAYS, FEARED & HATED THE MACHINE.

þ IN LATE 18TH CENTURY, HAMLET ROSE IN REVOLT
RATHER THAN WORK IN THE NEW TEXTILE MILLS.

     þ THE LUDDITES BURNED & WRECKED FACTORIES.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

9
 OTHER TOPICS OF INTEREST IN HEILBRONER, CH 4

þ WORKING CONDITIONS IN THE FACTORIES

     þ CHILD AND WOMEN LABOR
     þ LONG HRS
     þ UNSAFE CONDITIONS

þ CAPITALISM & SOCIAL JUSTICE [PP. 68-69]

     þ DID INDUSTRIALIZATION CREATE POVERTY?>
 

þ MOST IMPORTANT LEGACY OF INDUSTRIAL REVOLUTION:
LONGTERM LEVERAGE ON ECONOMIC WELL-BEING.[P 69]
 

þ HOW DID INDUSTRIALIZATION RAISE MATERIAL WELL
BEING?

þ SOCIETY WAS POOR BECAUSE OF THE SHEER INADEQUACY
OF OUTPUT, THERE WAS SIMPLY NOT ENOUGH TO GO
AROUND:

     þ DIAGRAM WITH PEOPLE AND GOODS.

þ  THE LIVING STANDRAD CAN GO UP ONLY IF SOCIETY'S
OUTPUT OF GOODS AND SERVICES INCREASES.

     þ SPECIFICALLY, THE PRODUCTION OF GOODS &
SERVICES MUST RISE FASTER THAN THE POPULATION.
 

þ HOW DOES A SOCIETY RAISE ITS PER CAPITA OUTPUT?

     þ SMITH'S PIN FACTORY PRIVIDES SOME INSIGHTS.
 

þ KEY TO HIGHER OUTPUT = ENHANCING HUMAN ENERGIES
WITH THE LEVERAGE OF INDUSTRIAL CAPITAL
 
 
 
 
 
 
 
 
 
 
 
 
 

10
 OTHER TOPICS OF INTEREST IN HEILBRONER, CH 4
 

þ CAPITAL = ANYTHING THAT CAN ENHANCE A PERSON'S
POWER TO PERFORM ECONOMICALLY USEFUL WORK [P. 70]

     þ AN UNSHAPED STONE
     þ HOE
     þ ROAD SYSTEM
     þ KNOWLEDGE
 

     þ CLASS EXAMPLES OF CAPITAL

þ CAPITAL = CAPITAL GOODS --> STOCK OF EQUIPMENT,
MACHINES, AND BUILDINGS THAT SOCIETY PRODUCES TO
EXPEDITE THE PRODUCTION PROCESS.

þ PURPOSE OF THESE CAPITAL GOODS = TO MAKE HUMAN
LABOR MORE PRODUCTIVE:

     þ WORKER CAN PRODUCE MORE GOODS IN A WEEK WITH
THE CAPITAL EQUIPMENT THAN WITHOUT IT.

 
þ CAPITAL = A METHOD OF RAISING PER CAPITAL
PRODUCTIVITY.

     þ PRODUCTIVITY = A PERSON'S OUTPUT IN A GIVEN
SPAN OF TIME

þ IN A 40 HR WEEK, A TYPICAL MODERN WORKER CAN
PHYSICALLY OUTPRODUCE AT LEAST 6 PERSONS WORKING 70
HRS/WK WITH THE SIMPLER TOOLS AVAILABLE AT THE
BEGINNING OF THE CENTURY.

     þ MODERN WORKER TURNS OUT AT LEAST 8 X THE
OUTPUT/WEEK AS A WORKER AT TURN OF CENTURY.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

11
 OTHER TOPICS OF INTEREST IN HEILBRONER, CH 4
  [C]
 

þ CAPITAL GOODS --> GIVE A PERSON MECHANICAL &
PHYSICOCHEMICAL POWERS OF LITERALLY TRANSHUMAN
DIMENSIONS:

     þ ENORMOUSLY MULTIPLY MUSCULAR STRENGTH:

          þ FORK LIFT
          þ CONSTRUCTION EQUIPMENT
          þ MINING EQUIPMENT
          þ OVERHEAD CRANE
          þ GARBAGE COLLECTIONM

     þ REFINE POWERS OF CONTROL
     þ EMBODY INTELLIGEWNCE
     þ ENHANCE ENDURANCE FAR BEYOND FLESH & BONE

     þ ENHANCES  FEEBLE HUMAN CAPABILITIES.
 
 

þ SAVINGS AND INVESTMENT

     þ SAVE 20 %

     þ I DO NOT BUY 20 % OF THE GOODS & SERVICES I
COULD HAVE BOUGHT

     þ LABOR & CAPITAL EQUIPMENT ARE THEREBY IDLED

     þ USE THESE IDLED RESOURCES TO CREATE NEW
CAPITAL GOODS.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

12
 OTHER TOPICS OF INTEREST IN HEILBRONER, CH 4
  [C]
 

þ EXAMPLE: TOTAL SYSTEM = SHOE FACTORY + WASHING-
MACHINE FACTORY.

     þ DESIRE TO PRODUCE MORE WASHING MACHINES

     þ NO WORKERS TO MAKE MORE MACHINES TO PRODUCE
       WASHING MACHINES.

     þ MUST CUT BACK ON SHOE MAKING TO FREE UP
       WORKERS.
 
 

þ INVESTMENT CAN NOT EXCEED SAVINGS

þ MAIN DRIVER BEHIND CAPITAL ACCUMULATION IN WEST
OVER PAST FEW HUNDRED YEARS = A SUCCESSION OF
INVENTIONS.