economy 1851-1885 Flashcards
what industry dominated the British economy in the beginning of this period?
agriculture
Hobsbawn “a place where plants grew and animals feed”
250,000 farmers employed over 1 million people
how did repealing the corn laws impact British farmers?
had protected British farmers against cheap imported corn
no had to face foreign competition
how did James Caird want to change agriculture?
high farming
wanted farmers to mix crops and animal farming
use chemicals and machinery to increase yield eg Guano fertiliser from Peru
Royal Agricultural society of England helped farmers use new technology
were James Caird’s ideas successful?
golden age of agriculture 1853-1873
farmers who adopted new techniques incomes doubled
which agricultural products were in high demand and why?
meat and dairy
couldn’t be imported
high demand from towns with growing population
what was the population in towns at the time?
51%
which agricultural products were in low demand and why?
wheat
faced competition from USA and Russia
USA wheat was better for making bread
crystal palace exhibition
1851
showed foreign visitors what Britain could achieve
showed Lancashire cotton, steampower…
presented Britain as the “workshop of the world”
was the crystal palace exhibition successful?
6 million visitors in 5 months
huge amounts of orders causing a huge increase in exports - 20 year period of prosperity
kicked off boom
exports increased from £60 million in 1845 - £190 mil in 1869
made profit of £186,000
growth in staple industries
growing by 2-3%/year due to increased demand abroad as other countries were industrialising
exceeding domestic demand
employment grew
profits used fro investment - mainly in overseas banks - helps foreign countries expand
new coalfields opened - eg South Wales
industrial developments
ahead in design engineering…
produce more for cheaper - bigger markets
90% of British steel made in Sheffield
50% of European steel made in Sheffield
1/3 of European coal made in Britain
expansion of railways
development of railways increased demand for coal and steel
every town was now linked to sea port via railway
fresher goods imported quicker
growing markets
9500 km in 1850 to 22,000km in 1875
employed a lot of people
export of railway iron
rose from 2 million tonnes in 1854 to 4 million tonnes 1870
growth of shipping
1850 - 300,000 tonnes of ship
1880- 3 million tonnes of ships
Britain dominated
invisible trade - other countries used British ships
suez canal opened in 1869 - only British ships were narrow enough to fit - reduced foreign competition
problems in the coal industry
Germany and USA were mechanising coal industry but Britain were still extracting by hand
mines were run by private businesses who were reluctant invest in mechanised equipment
how were the USA and Germany competing with Britain?
larger populations
greater resources of natural materials
outperformed in education - male illiteracy 17% in Britain, 2% in Germany
US mass produced new technologies
Germany and USA were industrialising with newest technology
British industry made up of smaller firms with less capital
arguments in favour of a depression x15
profits falling
unemployment increased
percentage share Britain had in world production fell
German economy grew by 400% and USA grew by 300%
failed to adopt new industries such as electrical engineering, typewriters and sewing machines
Britain remained free trade instead of adopting tariffs
falls in profits - didn’t have money to invest in new premises and machinery
cotton famine in Lancashire
30% in York living in below poverty line according to Rowntree’s study
workhouses drained economy
relative decline after 1873 - no investment
Long term problems such as shipping and investing in foreign banks
rural depopulation
landowners suffered 1873
family businesses
to what extent was there a depression after 1873?
more of a depression in agriculture than whole economy
to what extent was there a mid victorian boom?
unique period of growth in early period
increased demand was beneficial
problems post 1873 although quite confined to agriculture
how could free trade benefit the economy?
no tariffs - cheaper raw materials -cheaper products - bigger market- more profit - more money reinvested - businesses expanding
more competition - more innovation - products were better quality
how could free trade benefit the society?
cheaper food - better health - money to spend on other goods - better standard of living - less welfare benefits - less taxes
was Britain in a strong position economically by 1873?
underlying issues
looked strong on surface
complacent
countries starting to catch up
education system not suited to economy
why was 1873 a turning point?
wet summer and poor harvest ended ‘golden age’
started depression in farming
unemployment levels
1% in 1872
11% in 1879
over 10% in 1886
