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The Modern Age in Europe: Industrial Revolution, Capitalism and Socialism — notes

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1. Meaning, dates and the change from home to factory

  • Industrial Revolution: the change from hand production in homes and workshops to machine production in factories using power (water, then steam).
  • It began in England from about the 1750s or 1760s, continued to about the 1830s or 1840s, and then spread to other countries.
  • It changed industry, transport and society.
  • Before: the domestic system; after: the factory system, with fixed hours under a master.
Table on the Industrial Revolution: a change from hand production in homes and workshops to machine production in factories, using water and then steam power, beginning in England from about the 1750s or 1760s, lasting to about the 1830s or 1840s, and then spreading to other countries
PointFact
What it wasA change from hand production in homes and workshops to machine production in factories
Power usedWater first, then steam
Where it beganEngland
WhenFrom about the 1750s or 1760s to about the 1830s or 1840s
ThenIt spread to other countries
When and where.
Table comparing the domestic system with homes, hand tools, human and animal strength and families at their own pace, with the factory system of large mills, machines, water and steam power and workers under fixed hours
Before: the domestic systemAfter: the factory system
Place of workHomes and small workshopsLarge factories and mills
ToolsHand tools, hand wheel, hand loomMachines driven by power
PowerHuman and animal strengthWater, then steam
WorkersFamilies working at their own paceWorkers under fixed hours and a master

Key terms

Industrial Revolution

The change from hand to machine production in factories using power.

Domestic system

Work done at home with hand tools.

Factory system

Machine production in large mills under fixed hours.

2. Why England: the causes

  • Capital from trade and colonies, and a banking system (Bank of England, 1694).
  • Colonies: raw materials (for example cotton) and markets.
  • Coal and iron deposits close together.
  • Cheap labour: the enclosure movement and farming changes pushed rural people to towns.
  • A large navy and merchant shipping; political stability.
  • An agricultural revolution fed a growing population.
  • Canals and roads; a spirit of invention.
  • No single cause explains it; many worked together.
Causes of the Industrial Revolution in England.
Table of three causes: capital from trade and colonies for investment, colonies supplying raw materials such as cotton and markets, and the banking system including the Bank of England of 1694
CauseHow it helped
Capital from trade and coloniesMerchants had money to invest in mills, machines and ships
ColoniesSupplied raw materials such as cotton, and were markets for finished goods
Banking systemThe Bank of England (1694) and other banks lent money
Enclosure and labour.
Table of three causes: a large navy and merchant shipping protecting and carrying trade, political stability encouraging investment, and the agricultural revolution feeding a growing population
CauseHow it helped
Large navy and merchant shippingProtected trade routes and carried raw materials and goods
Political stabilitySteady government made owners willing to invest for the long term
Agricultural revolutionBetter farming fed a growing population, including town workers
Table of two causes: canals and roads moving coal, cotton and goods, and a spirit of invention in which many people tried and patented new machines
CauseHow it helped
Canals and roadsMoved coal, cotton and finished goods between mines, mills and ports
Spirit of inventionMany people tried, improved and patented new machines

Key terms

Enclosure movement

Fencing of common land into large private farms.

Capital

Money and resources available to invest in business.

Agricultural revolution

Better farming methods that raised food output.

3. Inventions (examples)

  • John Kay, flying shuttle, 1733.
  • James Hargreaves, spinning jenny, about 1764.
  • Richard Arkwright, water frame, 1769.
  • Samuel Crompton, mule, 1779.
  • Edmund Cartwright, power loom, 1785.
  • James Watt, improved steam engine, patent 1769.
  • Abraham Darby, smelting iron with coke, about 1709.
  • George Stephenson, locomotive Rocket (1829); Liverpool to Manchester railway (1830).
Inventions, 1709 to 1830 (to scale).
Table of five textile machines with inventor, year and use: flying shuttle by John Kay 1733, spinning jenny by James Hargreaves about 1764, water frame by Richard Arkwright 1769, mule by Samuel Crompton 1779, and power loom by Edmund Cartwright 1785
MachineInventorYearWhat it did
Flying shuttleJohn Kay1733Sped up hand weaving
Spinning jennyJames HargreavesAbout 1764Spun several threads at once
Water frameRichard Arkwright1769Spun thread by water power in mills
MuleSamuel Crompton1779Spun fine, strong thread
Power loomEdmund Cartwright1785Wove cloth by power
Table of iron, power and transport: Abraham Darby smelting iron with coke about 1709, James Watt improved steam engine patent 1769, George Stephenson locomotive Rocket 1829, and the Liverpool to Manchester railway of 1830
InventionPersonDateImportance
Smelting iron with cokeAbraham DarbyAbout 1709Cheaper, plentiful iron
Improved steam engineJames WattPatent 1769Power not tied to rivers
Locomotive RocketGeorge Stephenson1829Showed the steam locomotive
Liverpool to Manchester railwayStephenson and others1830Fast rail for goods and people
Table of changes: industry with factories and mass production, transport with canals, roads and railways, and society with factory towns and new classes of owners and workers
AreaChange
IndustryFactories, machines, mass production of cloth and iron goods
TransportCanals, better roads, then railways
SocietyGrowth of factory towns; new classes of owners and workers

Key terms

Patent

A legal right to an invention for a number of years.

Coke

A fuel made from coal, used to smelt iron.

4. Capitalism: meaning and rise

  • Capitalism: an economic system in which the means of production (land, factories, machines) are privately owned and run for profit; prices set by market demand and supply; competition; workers paid wages.
  • Causes of its rise after the Industrial Revolution: factories and machines needed large capital; merchants and entrepreneurs invested profits; banks and joint-stock companies grew; trade and colonies expanded; the middle class grew; ideas of free trade and laissez-faire spread (Adam Smith, The Wealth of Nations, 1776: title only).
Table on capitalism: privately owned means of production, production for profit, prices set by demand and supply, competition between producers, and workers paid wages
PointFact
OwnershipLand, factories and machines (the means of production) are privately owned
MotiveProduction is run for profit
PricesSet by market demand and supply
CompetitionProducers compete for customers
WorkersAre paid wages
Table of six causes for the rise of capitalism: the need for capital, investment of profits, banks and joint-stock companies, trade and colonies, the growth of the middle class, and ideas of free trade and laissez-faire
Cause of the rise of capitalismIn brief
Need for capitalFactories and machines needed large sums
Investment of profitsMerchants and entrepreneurs put profits back into business
Banks and joint-stock companiesPooled the savings of many people
Trade and coloniesExpanded markets and supplies
The middle classGrew in size and put its money into business
Free trade and laissez-faireIdeas of limited state interference spread
A joint-stock company.
Table: free trade means few controls, laissez-faire means as little state interference as possible, and the book named is The Wealth of Nations by Adam Smith of 1776
IdeaMeaning
Free tradeTrade with few controls or duties
Laissez-faireThe state interferes as little as possible in trade and business
A book namedThe Wealth of Nations by Adam Smith, 1776 (title only)

Key terms

Means of production

Land, factories and machines used to make goods.

Joint-stock company

A company that raises capital by selling shares to many investors.

Laissez-faire

The idea that the state should interfere as little as possible in trade and business.

5. Socialism: meaning and rise

  • Socialism: an economic system or idea of social ownership or control (by society or the state) of the means of production. Its aims are to narrow inequality and to share wealth more fairly; it often relies on planning and welfare.
  • Conditions of workers: 12 to 16 hours a day and low wages; child and women's labour in factories and mines; unsafe machines; crowded slums and disease; no job security; a widening gap between owners and workers.
  • Early (utopian) socialists: Robert Owen (New Lanark), Saint-Simon, Fourier.
  • Karl Marx and Friedrich Engels: The Communist Manifesto (1848); Marx's Das Kapital (first volume 1867). They argued that classes with opposed interests, owners and workers, shaped history (class struggle).
  • Trade unions; Britain's Factory Acts, for example 1833, limited child labour.
Table on socialism: means of production owned or controlled by society or the state, the aim of reducing inequality and sharing wealth more fairly, and often planning and welfare
PointFact
OwnershipThe means of production are owned or controlled by society or the state
AimTo reduce inequality and share wealth more fairly
MethodOften planning and welfare
Table of conditions of workers: 12 to 16 hours a day for low wages, child and women labour in factories and mines, unsafe machines, crowded slums and disease, no job security, and a widening gap between owners and workers
ConditionIn the early factory towns
Hours and payOften 12 to 16 hours a day, for low wages
Child and women's labourIn factories and mines, for less pay
SafetyUnsafe machines
Housing and healthCrowded slums and disease
SecurityNo job security
The gapA widening gap between owners and workers
From factory conditions to socialist ideas.
Table of early socialist thinkers: Robert Owen at New Lanark with houses, a school and shorter hours, Saint-Simon wanting industry organised for society, and Fourier proposing small cooperative communities
ThinkerIdea or action
Robert OwenRan New Lanark with houses, a school and shorter hours for workers
Saint-SimonWanted industry organised for the good of society as a whole
FourierProposed small cooperative communities
Table on Marx and Engels: The Communist Manifesto of 1848, Das Kapital first volume of 1867, and their argument that classes with opposed interests shaped history
PointFact
ThinkersKarl Marx and Friedrich Engels
The Communist Manifesto1848, by Marx and Engels
Das KapitalFirst volume 1867, by Marx
Idea of class struggleThey argued that classes with opposed interests, owners and workers, shaped history
Table of responses: trade unions of workers bargaining for wages, hours and safety, and Factory Acts, such as that of 1833 limiting child labour
ResponseWhat it was
Trade unionsAssociations of workers who bargained together for wages, hours and safety
Factory ActsLaws; the Act of 1833 limited child labour in textile factories and provided for inspectors

Key terms

Socialism

An economic idea of ownership or control of the means of production by society or the state.

Trade union

An association of workers that bargains for wages, hours and safety.

Class struggle

The idea that classes with opposed interests shape history.

6. Capitalism and socialism compared

  • Compare on ownership, motive, how prices and output are decided, distribution of income, role of the state, and competition.
  • Supporters of each system point to its merits, and critics to its limits. A history answer describes both side by side and does not rank them.
  • Many countries, including India, follow a mixed economy.
Capitalism and socialism side by side.
Table of merits and criticisms: supporters of capitalism point to incentives, choice, new ideas and growth, critics to inequality and insecurity; supporters of socialism point to security, fairness and planning for social goals, critics to weaker incentives and heavy planning
CapitalismSocialism
Supporters point toIncentives, choice, new ideas, growth of outputSecurity, fairness, planning for social goals
Critics point toInequality of income and insecurity of workersWeaker incentives and heavy planning

Key terms

Mixed economy

An economy combining private enterprise with a role for the state.

Exam tips

Common mistakes

  • Writing dates without the word about, or placing the start in the nineteenth century.
  • Mixing up the water frame (Arkwright, 1769) and the mule (Crompton, 1779), or the jenny and the power loom.
  • Listing an effect, such as slums, as a cause of the Industrial Revolution.
  • Confusing laissez-faire (limited state interference) with planning.
  • Quoting books instead of naming them; only the titles and the main idea are needed.
  • Declaring one system better; describe features, merits and criticisms of both.

How marks are usually awarded

  • 1-mark items: one correct option, name or date.
  • 2 marks: two distinct points; 3 marks: three points.
  • 10-mark questions in 3 + 3 + 4 parts: one clear point per mark; the last part usually needs a link, reasons or a comparison.