1.2 The Industrial Revolution
Introduction
Industrialization is a major aspect of the American story and it is essential to consider if we are to understand the progress of American history. In order to do that we will trace the concepts of wealth, property, and production beginning in the middle ages.
Feudalism: Structure and Social Order
Feudalism was structured around a unit of land called a fief. In a kingdom, while the king technically owned all land, it was distributed among lords, his trusted allies, who managed these lands. The social hierarchy was vividly reflected in the layout of a fief, which generally comprised a village, fields belonging to the lord, and common lands or commons. These commons were utilized by peasants for growing crops and rearing livestock.
The Role and Obligations of Peasants
Under this system, lords had rights to the peasants' labor rather than ownership of the peasants themselves. Peasants, in exchange for protection and the use of commons, owed labor to their lord. This labor initially entailed working in the lord’s fields, with the produced agricultural goods sold by the lord for profit. Over time, the nature of these dues evolved from labor to monetary rent, heralding the modern concept of renting land from a landlord.
Economic Implications and the Agrarian Nature
Feudalism was intrinsically agrarian, with a lord's wealth and power directly linked to land ownership. Despite its agrarian foundation, the system operated at a subsistence level, primarily producing enough to meet the immediate needs of the community, leaving little for trade or wealth accumulation for those other than the lords.
Manufacturing and Cottage Industry
Agriculture, while central, was not the sole economic activity. Necessary industries, such as those producing heavy equipment like cannons, were located in hilly areas to utilize water power. Everyday items, including horseshoes, pots, and clothing, were produced in village cottages. A notable example of this cottage industry was textile production, crucial in the rise of the British Empire. This industry was personalized and localized, marked by small-scale production of high-quality goods. Craftsmen, using tools like looms, produced items tailored to individual needs, embodying a model of producing limited quantities of high-quality goods at reasonable prices.
Concept of Profit
In this system, the concept of profit was intimately linked to the ownership of the means of production, such as looms in textile manufacturing. Craftsmen would purchase raw materials, utilize their skills and equipment to create products, and the profit from sales, after deducting costs, constituted their reward for owning and operating the production means.
The Impact of the Discovery of America on Europe and the Subsequent Global Transformations
The term "discovery" is used with the acknowledgment that indigenous populations were already present in the Americas, and their simultaneous discovery of Europe and Europeans was equally significant.
Economic and Demographic Changes in Europe
Europe's economy, primarily subsistence-based before America's exploration, underwent transformative changes post-discovery. The Middle Ages in Europe were characterized by a stagnant population growth due to agricultural limitations, with cycles of good harvests and population growth followed by poor harvests, famines, and population decline.
The introduction of American crops, particularly the potato, significantly altered this dynamic. The potato's role in boosting food supply led to population growth, shifting Europe from subsistence agriculture to a more production-surplus economy.
Resource Extraction and Wealth Accumulation
The Americas became a crucial source of resources for Europe. The extraction of silver, notably by the Spanish in Mexico and Peru, substantially enriched the Spanish Empire. This wealth accumulation extended to other European powers, including the British, French, and Dutch, who also exploited American resources.
The European Cash Flow Problem and Technological Investment
The influx of wealth from the Americas resulted in an excess of cash in Europe. Wealthy individuals, including American plantation owners, invested in land, titles, arts, and gained influence in royal courts. The surplus capital eventually fostered technological investments, notably in machinery to enhance production efficiency. The steam engine, a key invention, propelled both the Industrial Revolution and the Transportation Revolution.
The Transportation Revolution and Its Impact
The steam engine revolutionized transportation, increasing travel speed from about 3 mph to approximately 25 mph. This transformation had a significant impact on global connectivity, facilitating quicker movement of people and goods.
In American history, the contrast between the 1803 Lewis and Clark expedition and the 1865 completion of the transcontinental railroad highlights this transformation. The journey duration from Pittsburgh to the west coast and back decreased from 18 months to just two weeks, accelerating the settlement and development of North America.
The Transition from Feudalism to Industrial Capitalism
Emergence of the Bourgeoisie
The term 'bourgeoisie' originates from urban centers and is derived from the French word 'bourge,' meaning 'town.' In English, it is echoed in titles like 'burghers' and place names such as 'Pittsburgh.' The bourgeoisie represented a new social order where merchants played a dominant role, differing significantly from the feudal lords and peasants.
Industrial Revolution and the Factory System
Steam Engine and Mass Production =
The invention of the steam engine was pivotal in transitioning manufacturing from rural cottages to urban factories. Unlike the cottage industry, where one person used one tool to produce a single item, the factory system utilized machines capable of operating multiple tools to produce numerous items simultaneously. This mechanization allowed for continuous production, emphasizing mass production of medium-quality goods at low prices.
Standardization and Urbanization
An essential aspect of the factory system was its emphasis on standardization, as exemplified by clothing sizes like small, medium, large, and extra-large. The availability of labor and low wages paid to workers significantly reduced the cost of goods. This shift led to urbanization, marked by a massive increase in city populations due to the concentration of factories.
Agricultural Advancements and Surplus Population
The introduction of new crops from the Americas and advances in agricultural methods enabled fewer people to produce more food. This led to what can be termed a 'surplus population.' Previously, everyone's efforts were required for subsistence, but now there were more people than essential tasks. This surplus population, migrating from villages and fiefdoms, sought employment in urban factories.
Proletariat vs. Bourgeoisie
In contrast to peasants who owned their tools, the new class of workers, known as the 'proletariat,' entered the factory environment owning nothing but their labor. In the industrial capitalist system, the bourgeoisie owned the factories and thus controlled the means of production. They acquired the surplus generated from production, while the proletariat, owning only their labor, received just a subsistence wage.
Exploitative Nature of the System
The system's exploitative nature is evident in the process of proletarianization, where the bourgeoisie, owning the means of production, benefited from surplus production. The proletariat, mainly from rural areas, were left with only their labor to offer, receiving a subsistence wage in return. This dynamic led to the formation of two distinct classes: the affluent bourgeoisie and the working poor, the proletariat.
Modernization in Western Context: An Academic Overview
Definition and Implications of Modernization
Modernization, in the context of this course, is defined as a process or state reflecting Western characteristics, primarily marked by an industrialized economy and a liberal government. This definition is crucial for understanding the historical and socio-political transformations in various regions, particularly in the Western world.
Components of Liberalism and Modernized Countries
Liberalism, a key element in modernization, comprises three main components:
- Democracy: It involves popular sovereignty and adheres to the principle of "one person, one vote."
- Secularism: This pertains to the separation of religious influence from governmental affairs.
- Laissez-Faire Capitalism: This economic system allows free market operations with minimal government intervention.
A modernized country, thus, is identified by its industrial economy and liberal government, contrasting with political types such as monarchy, theocracy, or autocracy, and economic systems like mercantilism or communism.
Sustainability of Modernized Systems
It has been observed that while some countries have developed industrial economies, they lacked liberal governments, leading to unsustainable systems. This highlights the interdependence between economic and political structures in the context of modernization.
Early Modernized Countries
Around 1800, the countries classified as modernized, possessing both industrial economies and liberal governments, were predominantly in Western Europe. These included the United States, Britain, France, parts of what is today Germany, and Belgium. Countries like Spain, Italy, or Russia did not fall into this category. The United States fully joined this group post-Civil War in the latter half of the 19th century.
The Agricultural Revolution and Its Impact
The discovery of America played a pivotal role in the Agricultural Revolution, providing Europeans with access to new crops. This development led to a significant shift in food production dynamics. The potato, for example, transformed European agriculture, facilitating sustained population growth from its introduction until after World War II. Technological advancements in production and transportation further amplified agricultural output.
Societal Shifts Due to Agriculture
This revolution in agriculture disrupted the traditional agrarian economy. As agricultural labor requirements decreased, many individuals became "surplus labor," a term highlighted in Charles Dickens' 'A Christmas Carol' where he makes the very capitalist remark, "If they would rather die they had better do it ad decrease the surplus population." This surplus labor facilitated the maintenance of low wages in factories, as workers were easily replaceable.
Migration and Urbanization
The surplus of rural laborers led to significant migration towards cities, with many seeking employment in factories. This movement was not limited to domestic migration; many sought opportunities abroad in the Americas, marking a notable population movement in the 19th century. Consequently, urban centers such as London, New York, and Boston underwent rapid growth, a phenomenon known as "urbanization."
Democratization
Capitalism and Wealth Distribution
Historically, wealth was predominantly in the hands of landowners. The advent of capitalism revolutionized this dynamic, enabling wealth creation independent of land ownership. This broadened the potential for wealth accumulation across a more diverse demographic, subsequently influencing political power dynamics.
The capitalist "golden rule" — "whoever has the gold makes the rules" — signifies that control over wealth is synonymous with rule-making authority. Unlike the moralistic golden rule of religious teachings, this principle emphasizes that wealth equates to political influence. As wealth distribution becomes more diverse, so does participation in governance.
The American Revolution is considered the birth of the world's first modern democracy. The founding fathers, such as Adams, Washington, and Jefferson, were property owners who crafted a governance system where the wealthy ruled. Initially, voting rights in the United States, determined by individual states, were restricted primarily to property-owning white males. This historical reality highlights the fact that property ownership was a prerequisite for political power.
Laissez-Faire Capitalism and Government Intervention
Adam Smith, advocating for minimal government intervention, envisioned a society where the pursuit of self-interest, guided by an "invisible hand," would enable wealth attainment without pronounced class divisions. However, the reality deviates significantly from this ideal. Wealthy individuals and corporations often influence government policies to safeguard their interests, leading to governmental bias towards the capitalist class.
Contradictions in Capitalist Advocacy
Many capitalists, while favoring government non-intervention, paradoxically support governmental involvement in labor relations to favor the owner class. This contradiction is particularly evident in conservative political rhetoric.
Government Intervention in Times of Crisis
The COVID-19 pandemic saw significant government intervention in the economy, challenging the laissez-faire doctrine. History, such as during the Progressive Era and the New Deal, demonstrates that governments have intervened in laissez-faire capitalism to avert social upheaval. This intervention, although sometimes labeled as "socialism" by some conservatives, is a pragmatic response to the inherent instabilities of unregulated capitalism.
Emergence of the Middle Class
Industrialization facilitated the rise of the middle class. Unlike the feudal system's binary division of lords and peasants, the Industrial Revolution introduced more complex social strata, including the bourgeoisie and proletarians. The demand for educated workers led to the development of a managerial or middle class, which gained significant influence in a democratic society, as evident after the Progressive Era and the New Deal.
"False consciousness" describes the phenomenon where the working and middle classes are manipulated into acting against their own interests. By fostering divisions along lines of race, ethnicity, religion, gender, or other attributes, those with conflicting interests create a false sense of solidarity among these classes, leading to socio-economic alienation.
Industrialization has generally increased democracy worldwide, but this process is marked by complex interplays between economic theories, class dynamics, and political power. Despite broader wealth distribution, a small fraction of the population still controls most wealth, perpetuating the principle that "whoever has the gold, makes the rules."
Imperialism
The British Empire and Industrial Demands
In the nineteenth century, the burgeoning industrial demands played a pivotal role in the rise of imperialism, particularly evident in the British Empire's reliance on textiles. England's lack of domestic cotton production led them to source cotton from the American colonies and later the U.S. South. The Civil War's impact on cotton supply prompted England to turn to alternative sources like Egypt and India. This shift exemplifies a key aspect of imperialism: the use of military power to control resources. England's technological superiority allowed it to dominate Indian cotton supplies, highlighting imperialism's essence as a quest for resources and markets. This involved importing cotton from India and selling back the manufactured textiles, turning India into a wealth-generating entity for England.
The American Approach to Imperialism
The United States adopted a different imperialist approach, focusing on economic control rather than direct colonial rule. This stems from America's initial sufficiency in resources and markets within the North American continent. U.S. imperialism was characterized by influencing other countries' economies rather than establishing direct governance.
Justifications for Imperialism
The economic motivations behind imperialism were often cloaked in a moral dimension. Justifications ranged from claims of better resource utilization to the imposition of 'superior' living standards and governance. This is embodied in Rudyard Kipling's notion of the "white man's burden," reflecting a belief in European and American superiority and a perceived obligation to 'civilize' other nations. This mindset parallels the American doctrine of Manifest Destiny, yet these beliefs often mask underlying economic and strategic interests.
The dual motives in U.S. foreign interventions - economic gain versus spreading "Liberty!" - have led to perceptions of hypocrisy in American foreign policy. This duality reflects America's struggle with its self-identity, fluctuating between being an industrial power and a beacon of "Liberty!" Different periods in U.S. history have seen government policy swayed by either of these views, leading to a complex and often contradictory foreign policy. The duality in American foreign policy reflects America's dual nature that came out of the first presidential administration. It is not one thing justifying the other. The United States is both an economic powerhouse and a defender of democracy.
Modernization and the Threat of Colonization
The 19th century marked a clear divide between modernized and non-modernized nations, with 'modernization' defined as adopting Western liberalism and industrialization. This dichotomy forced nations to either modernize or risk colonization. China's resistance to modernization led to its division into spheres of influence by Western powers in the early 20th century. Conversely, Japan's intentional modernization during the Meiji era not only prevented colonization but also transformed it into an imperial power. By the early 20th century, virtually every non-modernized region of strategic importance was under Western control.