Chapter 7-2: Britain Leads the Way

By the 1780s, the British Industrial Revolution, which had been developing for several decades, began to further accelerate. Manufacturing, business, and the number of wage laborers skyrocketed, starting a trend that would continue into the first half of the 19th century. Meanwhile, technology changed: hand tools were replaced by steam- or electricity-driven machines.

The economic transformation brought about the British industrial revolution was accompanied by a social transformation as well. Population boomed, and demographics shifted. Because industrial resources like coal and iron were in Central and Northern England, a shift in population from Southern England northward took place. Northern cities like Manchester grew tremendously. These changes in social and demographic realities created vast pressure for political change as well. The first act to protect workers went into affect in 1802 (though in practice it did very little). Pressure to redress the lack of representation for the new industrial cities and the newly wealthy industrial manufacturers also began to build.

Meanwhile, industrialists developed an ideology called Laissez Faire based on Adam Smith's Wealth of Nations (1776) and continued by David Ricardo and Robert Malthus. Based on this, the discipline known as "economics" developed, largely to give the manufacturers a basis for arguing for little or no regulation of industry. Instead of government interference, these economists argued that a free market, in which everyone followed their own self- interest, would maximize the nation's utility.

Britain, with its head start in manufacturing, its many world markets, and its dominant navy, would dominate industry for most of the 19th century. Towards the end of that century, the United States and Germany would begin to challenge Britain's industrial power.