Then along came the idea of big business. The changes that took place after the civil war involved more then just a change of technique and productivity. By the beginning of the twentieth century, the nations major sectors, like banking, oil refining, railroads, and steel, were controlled by a small number of larger corporations. This rise was also accompanied by an increase in the number of millionaires. At the beginning of the Civil War, there were only 400 millionaires in the United States.
The Industrial Revolution of Britain took place from 1780 and throughout the 19th century, during this time period, Britain thrived off extreme production rates and this caused Britain to become the top country in the world to produce goods so rapidly during the 18th century. Although, the growing success of Britain had a fatal price. The revolution changed the culture of Britain, manufacturing was no longer a task done in the home but now became centralized in the factory. The birth of factories brought child labor, dense living conditions, urbanization, and changes in economy, but the factories were not just the whole part of the revolution. Many inventions were created and their impacts were substantial when reviewing the overall revolution.
By the 1870s, Britain’s economy was enviable by the rest of the world as they set the pace in industrialising. However, her pre-eminence (GPD per capita exceeded that of America by one-third) wavered in this period preceding World War I. To determine whether this change was due to inefficiencies in British industry requires recognition of the contrasts between Britain and America. Although America’s economy improved vis-à-vis Britain’s, this was out of Britain’s control due to exogenous variables. Neoclassical economic growth theory states that technology is a precursor to higher living standards and productivity gains.
Even after a period of substantial restructuring and adjustments, particularly during a recession since the late 1970’s, the sector (including construction and civil engineering) now employees only about one quarter of the country’s workforce and contributes the same proportion of GDP (gross domestic product). Both production and employment grew rapidly during the 1950’s thru the 1960’s as industrial development which were stimulated by the opening of new markets and rising income. In the 1970’s, industrial production saw a sharp decline. However, a period of major industrialization followed as manufacturers responded to reduce domestic demand of the most intense foreign competition. Over the past few years, investments have produced increased output, even though it has been at a lower rate in an irregular fashion than in earlier postwar periods.
By the eighteenth century all of Western Europe had begun to industrialize rapidly, but in England the process was faster than in other parts of the world. This may be attributed to a number of factors: large deposits of coal were still available for industrial fuel. abundant labor supply to mine coal and iron, man the factories. Fleet remained from old commercial empire Ability to furnish raw materials (through colonies) capital to invest industrial development not interrupted by war Soon all Western Europe was more or less industrialized, and the coming of electricity and cheap steel after 1850 further speeded the process. (Rempel) The countryside was transformed between 1760 and 1830 from the open-field system of cultivation to make way for compact farms and enclosed fields (pay flat tax on land, must be surveyed and fenced in).
From the late 17th century to the early 19th century, industrialization was occurring in the United States and around Europe. The abundance of raw materials and the ambition of business men caused the industrialization before and after the Civil War. The First Industrial Revolution and Second Industrial Revolution, known as the Technological Revolution, caused the United States to thrive throughout those years because of population increase and all the new products or ideas there was. In the 1900s, the United States became the leading industrial power in the world because of both revolutions; the first revolution led into the second revolution because of the technology and economic changes occurring. The First Industrial Revolution changed agriculture customs and the Second Industrial Revolution caused changes in production techniques, but both helped the United States industrialize and become the most successful country in the world.
The output of oil increased from 11.7 to 21.4 million tonnes, steel increased by 1.9 million tonnes and coal almost doubled from 35 to 64 million tonnes. The second FYP (1932-32) generated similar results, and by 1933, overall output levels were four times that of 1913. 1929 and 1938 saw production of gas and oil both rose by 130%, production of coal and iron ore rose by 230% each, steel by 267%, and electricity by 540%. These successes however were built on much sacrifice from the proletariat. The majority of production was of industrial goods, which allowed for investment to remain high, however there were very little
As we can see, the average annual industrial wages rose from $1158 (in 1919) to $1304 (in 1927), furthermore, the number of millionaires increased from 7000 (in 1914) to 35000 (in 1928). The key to American’s prosperity is foreign trade and new industries, America exported $500 million worth of goods, while imported 400 million worth of goods during 1926-30. As America earning more money, factories produce more, industrial production has increased by almost 80% since 1921. Less people are now living in poverty and ever before, since the number of unemployment decreased from 11.9 million (1921) to 4.1 million (1927). However, not every American benefit from the boom in the early 1920s.
British economic prosperity in the First Industrial Revolution was based on a set of technologies that greatly increased the productivity of unskilled workers. However, the technologies developed in the Second Industrial Revolution required a large amount of skilled workers which UK did not have. The British educational system at that time was a failure; around 1860 only half of British elementary school-age children received some kind of education. The lack of technical an engineering education was even more noticeable (Grossman & De Long 1996). Thus, it should not be surprising that the US surpassed UK by 1900s.
Industrialization was a long hard process in Britain; however they were the first group of people to undergo this long process. The reason industrialization occurred in Britain was due simply to the fact that they had an astronomical jump in population. Within a one hundred year span, Britain’s population grew from 5.5 million in 1750 to over 16 million in 1851. The large population growth caused a great deal of economic and agricultural improvements for the British people. Farming was made easier and more efficient due to England undergoing a process of agricultural improvement that enabled fewer farmers to feed more people while cultivating the same amount of land.