In: Economics
How does the passing and subsequent repeal of the Corn Laws demonstrate the shift in power in Great Britain from the agricultural interests to the industrial interests in the early 19th century?
In Great Britain, corn laws were created during the period of 1815 and 1846 to favor the farmers who were producing corn. Using corn laws, the tariffs were applied upon the imports of corn, coming from outside of Great Britain and it made corn price to be higher in Great Britain. It was fetching higher revenue to the agricultural farmers. So, corn laws were serving the best interests of these agricultural farmers.
But, when these corn laws were repealed, then it meant that there was no tariff based barriers upon the imports from other markets. It caused firms in Great Britain to start importing corn from other countries at cheap rates and not buying the corn produced by the domestic farmers due to their higher prices. It forces the local farmers in Great Britain to sell their corn also at a lower price. It made these farmers to suffer and power shifted in favor of the industries as industrial interests were served more with the repeal and passing of corn laws. So, it is the way, that made repealing of the corn laws to shift power i favor of the industries and left agricultural farmers to suffer.