How far do you agree that rapid industrial growth was primarily the result of Laissez Faire policies?? Flashcards
Factor 1- Laissez Faire policies
Facts- 1799-1800 combination acts- made it illegal to form trade unions, decreasing regulation to allow businesses to get on with work without worker intervention
- 1823 Masters and servants act- made it illegal for someone not to carry out a contracted piece of work (imprisonment), stimulating more reliable and productive work force to help economy
- Repeal of statues of artificers 1813 and repeal of corn laws in 1846 meant businesses could hire labour and sell goods for whatever prices they wanted.
- banking co partnership act in 1826 unlimited the number of JSB and creation of larger JSBs
The reduction in regulation for businesses lowered their costs and ultimately increased their profits allowing them more finance for growth; however the acts weren’t a short term improvement and they were smaller long term benefits, so can’t be considered to help RAPID industrial growth.
Factor 2- growth of middle class( most important)
Facts- middle class are from 160,000-214,000 between 1816-1831 (75% increase)
- Richard Arkwright was an avid middle class entrepreneur who expanded his business of a water powered yarn spinner into derby, died with net worth of £500,000
- fastest growing sector of society, industrial growth snowballed with the increase in middle class, as the growth saw more middle class people reaching new markets, which in turn furthered the rapid growth of Britain
- as numbers of middle class increased, competition increased, forcing middle class to be innovative and improve their methods of production, which has a snowballing effect also
Explanation- The growth of the middle class was rapid and the de-regulation of Britain’s business relied on there being enough factory owners to make it worth while, they were the entrepreneurs making profit and directly driving forward the economy and so could be considered most important factor. Without them, no one else who are creating markets and money for the economy, allowing the rapid industrial growth. More competition forced middle class to improve businesses to stay competitive, working off of eachothers ideas to grow their business and get the most profits, which in turn sped up industrial growth.
Factor 3- increase in transport
Facts- Railways increased, Manchester to Liverpool built in 1830, speeds up rate of travel for workers and goods, allowing faster expansion and growth.
- Govt pass act to open Stockton- darlington railway company in the north of England, another example of how industrial growth could be sped up across the country
- railways were faster than canals
- by 1850, 6000 miles of track completed.
- 1844 railway act gave greater government power over railways and gave them the option to nationalise them if needed
Explanation- with govt help, coal and other essential materials travelled faster around UK, allowing businesses to build more, export more, invest more etc. Fuelling faster industrial growth, however not rapid as building railways takes time and not all areas are developed at same rate. Also relies on middle class businesses demand for railways.
Factor 4- Growth of banks
Facts- in 1784, 119 banks outside London, by 1808 there were over 800.
- Paper money aided easier transactions between banks and businesses, therefore safer and easier for businesses to access funding that allows them to invest, aiding industrial growth.
- Capital becomes more available, more access to new machines improved growth.
- Joint stock banks eg Lancashire banking company spread the risk among investors, safer than individual banks and improves stability of finance and loans.
- 1833 act of parliament allowed checks to be given out at any JS London banks, yet again, more widespread access to funding for MIDDLE CLASS BUSINESSES MEN
Explanation- Improved banking was a contributor to rapid industrial growth because it meant that loans could more easily be provided and therefore invest and expansion was easier for businesses, however once again it relied on the middle classes to take advantage and provide demand for these better banking services that allowed banks to grow, and the middle class used this to their advantage to allow rapid industrial growth.
Judgement/ line of arguement
Overall, the growth of the middle class was the primary reason for the rapid industrial growth, whilst the other 3 factors were less significant contributors that relied on the middle class and their business ventures. Because middle class population grew so rapidly, competition in business grew rapidly, and so businesses were forced to innovate and expand to beat their rivals; this sped up the industrial growth, and with the injection of better banking systems, faster transport of goods, and govt deregulation, industrial growth happened rapidly.
