Week 4- The Industrial Revolution

Question 1

What is meant by the Industrial Revolution?

Answer 1

A period of rapid technological change substituting machines for human skills to bring about a modern economy.

It’s a redeployment of resources away from agriculture

Question 2

Why was Britain the first to industrialise?

Answer 2

-High agricultural productivity
-Good institutions
-Labour characteristics- high wages and technical knowledge
-Good policy- taxes/banking/infrastructure
-Geography- Isolation

Question 3

What were the characteristics of the IR?

Answer 3

(1) Rapid shift from agriculture to industry (structural change)
(2) Use of machines for labour (substitution of labour)
(3) Use of fossil fuels
(4) Shift to large scale production
(5) Concentration of industry near inputs (industry specialisation)
(6) Integration of markets (via transportation)
(7) High rate of investment
(8) General purpose technology (Steam)
(9) Social/Institution change (inequality)

Question 4

Why is technological change important?

Answer 4

-Separates pre-modern and modern growth
-Sustained growth in efficiency

Question 5

What sectors was technological change concentrated?

Answer 5

-Steam
-Textiles
-Iron and steel

Question 6

What is TFP growth?

Answer 6

‘Total Factor Productivity’ growth measures the increase in output that is generated through technological advancements and not increases in labor or capital.

Question 7

What are the two views on the reason for technological change in Britain?

Answer 7

ALLEN-
-Britain had high wages but cheap capital/energy
-Britain was the only country with the correct factor prices and market size for ‘macro-inventions’

MOKYR-
-IR resulted from scientific knowledge, skilled craftsmen and incentives.
-Britain utilised human and physical resources thanks to ‘Enlightenment’

Question 8

What are criticisms of Allens theories?

Answer 8

-Macro inventions are generated from enlightened investors
-Macro inventions are not subject to biased change exclusively as firms will save ob all input costs not just expensive factors
-Limited evidence for labour-saving bias

Question 9

What are criticisms of Mokyr’s theories?

Answer 9

-Only 50% of inventions had links to enlightenment science
-Enlightenment impacted steam but not textiles
-Experimentation could have been the result of increased education not science

Question 10

What are the 3 criteria leading to the “agricultural revolution”?

Answer 10

(1) Change in farming techniques
(2) English agriculture was successful at feeding a growing population
(3) Increase in output arose from increased productivity.

Question 11

What are the 3 phases of the Agricultural Revolution?

Answer 11

Yeoman’s Revolution 16C/17C
Landlord’s Revolution 18C
19C Revolution 1800-1850

Question 12

What were the technological advances in the agricultural revolution?

Answer 12

-Fodder crops
-Crop Rotations
-Heavy manure use
-Regional Specialisation
-Selective breeding
-Machinery
-Large-scale capitalist farming
-Enclosure- privatising common wastes

Question 13

What is enclosure during the agricultural revolution?

Answer 13

The consolidation of shared lands into private property.

Question 14

When was the enclosure act enacted?

Answer 14

1750

Question 15

What happened during the enclosure act?

Answer 15

-Yeoman (peasant) farmers were pushed off the land by landlords.
-Enclosure removed small (less productive) farmers

Question 16

What is an argument for Enclosure?

Answer 16

Enclosure => Large farms => More output and less farm labour => Less farm labour lead to more urbanisation => City economic growth

Question 17

What are the 3 channels for enclosure to increase productivity?

Answer 17

(1) Layout of land- proper irrigation
(2) Commercial agriculture
(3) Enclosure removed fallow (uncultivated land)

Question 18

What is the ‘Tragedy of the Commons’

Answer 18

Theory that if everyone acted in self-interest they would deplete common land and ignore social welfare.

Question 19

What is an argument against Enclosure?

Answer 19

-Common land was already policed and privatisation was political.
-Higher inequality as poorly redistributed.
-Health implication for no longer being able to get firewood and graze cattle affected the health of workers.

Question 20

What does Allen argue about the enclosure act?

Answer 20

Enclosure increased productivity but only marginally- gains for yeomen were greater.

Question 21

What is the revisionist view on the start of the agricultural revolution?

Answer 21

Growth rapid before 18C then slower.
Suggests growth undertaken by peasant farmers
Implies enclosure was only important before 18C or not at all
Emphasis on increasing scale of agriculture than enclosure

Question 22

What is the counter-revisionist view on the agricultural revolution?

Answer 22

Growth accelerated during 18C
Suggests main advances didn’t occur until Enclosure Act
Argues that replacing inefficient farmers increases productivity
Focuses on reduction of fallow land

Question 23

Why did proto-industry spread?

Answer 23

-Industry spread into the country
-Sales to non-local markets
-Family labour
-Recentralised (homes not factories)

Question 24

What is proto-industry?

Answer 24

Economic development before industrialisation with decentralised production.

Question 25

What are the 3 theories linking to Proto-Industry?

Answer 25

Demographic Acceleration model
Transition to capitalism model
Dualistic labour supply model

Question 26

What is the demographic acceleration model?

Answer 26

Proto-industry allowed couples to marry sooner- increasing fertility.
Population growth was faster in proto-industrial towns

Question 27

What is the transition to capitalism model?

Answer 27

Proto-industry created an entrepreneurial class.
Responsible for seasonal employment
Established trade in foreign markets.

Question 28

What is the Dualistic Labour Supply Model?

Answer 28

Workers could be drawn out of cottages into factories without higher wages to fill time between agricultural seasons.

Question 29

What was the Consumer Revolution?

Answer 29

-19C
-Households began demanding goods to indicate status

Question 30

What is the industrious revolution?

Answer 30

Increased productivity and labour intensity among households

Question 31

What drove a demand-side revolution?

Answer 31

-Great discoveries brought new products
-Manufacturing replaced home with market production

Question 32

What does the demand-side revolution suggest?

Answer 32

Consumer demand grew regardless of wages
Households increased labour and commodity supply

Question 33

How could the industrious revolution cause the IR?

Answer 33

-New consumption possibilities led to increased market labour
-Households put more hours into the market and specialised

Question 34

What are the arguments against demand led theories?

Answer 34

-No consumer revolution occurred and real wages fell
-No industrious revolution and increase in hours worked