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CHANGES IN THE ECONOMY http://www.investopedia.com/terms/m/mercantilism.asp ADAM SMITH’S “WEALTH OF NATIONS”: THE INVISIBLE HAND (1776) ADAM SMITH’S “WEALTH OF NATIONS”: THE INVISIBLE HAND (1776) “"Every individual necessarily labours to render the annual revenue of the society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it ... ADAM SMITH’S “WEALTH OF NATIONS”: THE INVISIBLE HAND (1776) “"Every individual necessarily labours to render the annual revenue of the society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it ... He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. ADAM SMITH’S “WEALTH OF NATIONS”: THE INVISIBLE HAND (1776) “"Every individual necessarily labours to render the annual revenue of the society as great as he can. He generally neither intends to promote the public interest, nor knows how much he is promoting it ... He intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for society that it was no part of his intention. By pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the public good." INVISIBLE HAND EXPLAINED “The theory of the Invisible Hand states that if each consumer is allowed to choose freely what to buy and each producer is allowed to choose freely what to sell and how to produce it, the market will settle on a product distribution and prices that are beneficial to the all individual members of a community, and hence to the community as a whole.” http://www.worldlingo.com/ma/enwiki/en/Invisible_hand#Economists.27_interpr etation_of_the_.22invisible_hand.22_quote SUPPLY AND DEMAND LAISSEZ FAIRE ECONOMICS “Let be” in French No government interference in economy, let the economy be Same idea as the “invisible hand” but termed by Jean Baptiste Colbert, French Finance Minister STILL CONFUSED?? CHANGES TO PRODUCTION INDUSTRIES Textile industry PRE-INDUSTRIAL REVOLUTION WEAVING By Christoph Weigel 1698 The worker is about to move the shuttle back through the threads The man on the left is pulling wool through a weaving comb. PRE-INDUSTRIAL LOOM TEXTILE INDUSTRY John Kay’s Flying Shuttle 1733 FLYING SHUTTLE Doubled the output of a weaver Increased the demand for thread Able to create wider cloth Kay had struggles collecting from the patent and eventually lost it Backlash from weavers losing jobs because of the flying shuttle 1753 neighbours broke into Kay’s home try to kill him Kay escaped Kay leaves for France PRE INDUSTRIAL YARN SPINNING PRE INDUSTRIAL YARN SPINNING JAMES HARGREAVES SPINNING JENNY 1764 SPINNING JENNY http://videos.howstuffworks.com/discovery/31667-industrial-revelationsspinning-jenny-video.htm SPINNING JENNY Hargreaves was an uneducated carpenter and weaver Two origin myths about the invention: Named after his wife Daughter knocked over a spinning wheel and Hargreaves got the idea 1. 2. Invention was not patented in 1764 so others reproduced his machine Wikipedia says he had no daughters or wife named Jenny… Similar backlash to the flying shuttle but since there was no patent, people adopted the designs instead Hargreaves patents the design in 1770 but others had already began to improve on his design Hargreaves dies 8 years later in 1778 RICHARD ARKWRIGHT’S WATER FRAME 1768 John Kay had been working on a spinning machine but ran out of money Arkwright continues Kay’s work Made stronger thread by stretching the cotton/wool very thinly first, then spinning it Automated machine run by a water wheel Up to 128 threads at one time! Beginnings of the movement from cottage industry to factory because of unskilled labour (children) SAMUEL CROMPTON’S SPINNING MULE 1779 Crompton combined elements of the Spinning Jenny and Water Frame to create the Spinning Mule Could be steam powered Made strong and varied types of yarn The machine was too similar to Arkwright’s so a patent would be difficult Instead, spread the knowledge for a subscription fee (ended up being only 60 pounds) SAMUEL CROMPTON’S SPINNING MULE 1779 Toured the country to try to get more subscriptions and found that about 80% of the textiles produced was from his invention Lobbied the government and got 5000 pounds (asking for 10000) Had a number of failed business ventures and died 1827 CHANGES TO PRODUCTION INDUSTRIES Steam JAMES WATT’S STEAM ENGINE 1769 First patented in 1769 by Watt, original created by Thomas Newcomen First steam machines used for pumping water out of mines JAMES WATT’S STEAM ENGINE 1769 Watt improves Newcomen’s design by allowing the condensing to occur in a separate chamber This allows the steam cylinder to stay hot Watt’s version would be adapted to be used in factories CHANGES TO PRODUCTION INDUSTRIES Iron and Coal COAL Year Coal Output (tons) 1700 2,600,000 1790 7,600,000 1795 over 10,000,000 http://www.saburchill.com/history/chapters/IR/016.html COAL Coal was mined, then converted to coke Coke is purified coal Created by heating the coal without oxygen Requires 12,000 degrees Celsius Burns with little or no smoke COAL USES Can create higher smelting temperatures Gases collected from coking coal could be used as lamp fuel Fuel to drive steam engines IRON/STEEL USES The iron bridge has been Railways popular tourist attraction To build factories and bridges since 1779 (Ironbridge, Eng) To build machines It was essential for steam engines, ships, trains It was essential for replaceable machine parts It was used for weapons of war such as cannons and rifles The Rotherham Plough used an iron plough It was used in the home for railings, kitchen ranges and bed frames IRON Cast iron (Pig Iron) = brittle (1709 using coke) Wrought iron = malleable (1784 using a puddling furnace) Therefore steel became more popular in 1850s (0.2-2.1% Carbon) CHANGES TO TRANSPORTATION TURNPIKE ROADS Companies built the roads and charged tolls Roads made of stone and gravel to shed water Communication becomes faster Transporting goods becomes faster New Kent 1825 CANALS Used for heavier goods or larger shipments (coal) Good for transporting delicate goods Faster than road transport James Brindley engineered 400 miles of canal Subject to freezing or drying up CANALS STEAM ENGINE TRAINS First Steam Engine train in 1814 (Blucher) by George and Robert Stephenson Hand made 4 mph STEAM ENGINE TRAINS First public railway 1825 (Stockton & Darlington) Liverpool-Manchester 1830 STEAM ENGINE TRAINS 1829 Stephensons built the “Rocket” 24mph fastest anyone’s been on land Multichambered boiler Concentrated the steam ADVANTAGES VS DISADVANTAGES? TASK: Read pp 134-141 In a paragraph, explain how all of the following allowed for the movement towards a factory system: Economic values Advances in textile industry Steam power Coal/Coke Iron Advances in Transportation (describe the developments and connect it to how it allows for factories)
