184 i PERIOD 5 Industrialization and Global Integration (c. 1750–c. 1900)
of increased agricultural output was the enclosure movement. Large landholders fenced
pastures that previously had been left open for common use, creating a sizable population
of landless laborers. England’s growing position in global trade contributed to the pursuit
of manufacturing interests. The English government supported industrialization by passing
laws and instituting policies that promoted its growth. In addition, England possessed the
factors of production:- Land (including natural resources such as coal and iron ore)
- Labor (including thousands of dispossessed farmers from southeastern England evicted
from their land as a result of the enclosure movement) - Capital (banking and investment interests capable of funding the costs of factories and
machinery) - Entrepreneurship (groups of individuals with the knowledge of combining land, labor,
and capital to establish factory production)
The technological advance that initiated the transition of manufacturing from home to
factory was the steam engine, invented by James Watt of Scotland in the 1770s. Accompa-
nying factory production were changes in transportation and communication such as the
telegraph, canals, steamships, and railroads, all of which served to speed up the movement
of goods and information.Expansion of Financial Institutions
To promote industrial investments, fi nanciers offered a variety of services, including insur-
ance, stock markets, and limited liability corporations. Many favored the use of the
gold standard to promote fi nancial stability. The globalization of industrialization gave
rise to transnational companies such as the United Fruit Company and the Hongkong
and Shanghai Banking Corporation. These fi nancial innovations owed their origin to the
economists Adam Smith and John Stuart Mill. Both Smith’s laissez-faire economics and
Mill’s economic liberalism held that government intervention in and regulation of the
economy should be minimal.Social Changes Brought by Industrialization
The factory system brought a number of changes to family life and society:- Work was carried out outside the home, a situation that separated family members.
- Factory workers were required to follow schedules and to arrive at work at a specifi ed
time. - Factories required workers to adhere to strict rules.
- Work was done to the noise of machines.
- The pace of work was generally more rapid than at home.
- Women lost manufacturing jobs carried out under the domestic system. They were
expected to return to the traditional roles of homemaker and childcare provider. - Social status began to be determined more by wealth than by family position in society.
- Early industrial cities were generally crowded, unsanitary, and poorly lit, with no police
protection.