Question

How did the political revolution that started in 1776 lead to the economic revolution of the early 1800s? Or, was there other factors that mattered?

Answer 1

Political revolution that started in 1776 was the triggered the economic revolution of early 1800s. But other factors were also causes of the economic revolution.

In 1776, a group of 13 British colonies launched the American Revolution by publishing the Declaration of Independence. It was a historic event. The Americans chose to “dissolve the political bands” that had tied them to Great Britain and secure their own rights to “Life, Liberty and the pursuit of Happiness.” This decision paved the way for political revolutions in France and throughout Latin America.

Another noteworthy development of 1776 was publication of books called The wealth of Nations by Adam Smith. This book marked the recognition of economics as a social science. Smith formulated economic laws that, he believed, guided the decisions of individuals as they took part in the exchange of goods. Those laws focused on the economic importance of free competition among individuals who were all pursuing their own self-interest. Smith’s laws were put to the test in the century that followed as several countries shifted the basis of their economy from agriculture to industry.

1. Availability of natural resources-Britain was blessed with vast coal and iron reserves which proved valuable for the evolution of industries.
2. Britain’s government was based on liberalism. It gave its citizens the freedom and security to pursue new ways of doing things. It also backed overseas trading ventures. The success of those ventures infused the economy with capital. Capital can be money. It can also take other forms, such as the factories and machinery used to produce goods., Britain was remarkable for the freedom it provided for private enterprise. It placed fewer restrictions on private entrepreneurs than any other European state
3. Britain had financial institutions in place since the early 18th century; such as a central bank, county banks and a stock exchange to finance new ventures. By 1760, the rising political and commercial influence of Britain in the world and profits it had enjoyed due to the booming cotton and trade industries, allowed wealth (capital) to be created.
4. Population Growth-In the year 1700, Britain had an estimated population of around 4 million. This was a quarter of the population of its European rival France and around 4% of India and China, which were the leading economies of the time. In a world without machines lack of working hands was a big disadvantage. The agricultural revolution gave the society enough food and the population grew rapidly throughout the century, more than doubling itself in a hundred years. This led to Britain having enough labour to feed its industrial growth.
5. Innovation and new technology was obviously the key factor in the success of Industrial Revolution. The main challenge for cotton industry in late 1700s was to create a subtle mechanized device for pulling and twisting the cotton fiber just the right amount to create a strong thread. The invention of the Spinning Jenny by James Hargreaves in 1764 solved this problem and increased the productivity eightfold. In 1769, Richard Arkwright worked on the ideas of Jon Kay and devised a method to hook up the Jenny to a water wheel calling it the water frame. This invention led to the first factory that completed the process of raw material to finished cloth at a single point. This then ushered the factory system, which was key to the Industrial Revolution.The defining invention of the Industrial Revolution was perhaps the Steam Engine of James Watt in late 1760s which was primarily invented to pull water from the coal mines.
6. The eighteenth century had witnessed an expansion of transportation facilities in Britain as entrepreneurs realized the need for more efficient means of moving resources and goods. Turnpike trusts constructed new roads, and between 1760 and 1830, a network of canals was built. But both roads and canals were soon overtaken by a new form of transportation that dazzled people with its promise. Railroads were the ‘‘most important single factor in promoting European economic progress in the 1830s and 1840s.’’
7. Cultural Interaction In the late 1800s, Western powers expanded beyond their borders. Under a policy of imperialism, they interacted culturally with Africa and Asia. They introduced new technologies to their colonies. They improved transportation, education, and access to medical care. However, attitudes toward native cultures were often based on racist ideas.
8. Social Structures -Industrialization greatly altered society. Manufacturing moved from the rural home or shop to the urban factory, a life-changing experience for the workers who moved with it. Agricultural laborers also moved to the city to work in factories. Laborers became part of a working class, in contrast to the owning class who built and ran the factories and other large enterprises.