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Stability of previous industrialization

Consider first the industrial revolution in England, which began in the later part of the 18th century. Prior to the innovation of textile mills, merchants brought textile work to cottages. Cottages specialized in one function such as spinning or weaving. The merchant organized transportation from one function to another. Production was part time artisan work which complimented agriculture, for example winter work. Initially, the industrial revolution applied water and then steam power to the production process. To gain economies of scale, the new industrialists had to organize large numbers of machines in one plant. This required bringing the worker to the industrial town.

Life in textile towns was the basis for Marx's observations on capitalism. While conditions in factories and factory towns were terrible by the standards of the middle class, they may have actually been better than the standards of the unemployed agricultural worker or the urban resident in a poor house. Real wages did gradually rise contrary to Marx's theories. The rise of the factory and factory town created new social issues such as child labor and worker safety. The factory town created the need for city government to provide services such as clean water and education. While the wealthy can avoid the slums, they can not avoid a germ. England was politically stable because real wages rose and the worker obtained the vote.

The issue of industrialization was a policy issue in Washington's administration. Jefferson and most agrarians opposed while Hamilton was in favor. Industrialization in the US was a gradual process starting around 1800. Employment trends in the US

a. Agriculture

__Date____% total emp
__1820_________70
__1900_________40
__1995__________2

b. Nonagriculture

__Date____% mfg_____% services
__1920________55_________45
__1980________28_________72

In this table mfg includes mining and construction and services includes government, services, finance, insurance, real estate, wholesale &retail trade, and transportation. Currently within the mfg firm approximately 1/3 the employees are not direct labor.

In the US the male worker always had the vote. (In eastern states some restrictions on male suffrage existed until the 1820s.) As a consequence of growing industrialization, the income distribution from 1860 to 1900 became much more highly skewed. From 1900 to about 1970, the income distribution was approximately stable. Nevertheless, for most workers real wages increased continually since 1790 and in the 19th and 20th centuries services expanded to create new jobs. Consequently, the US has always been a model of political stability in spite of the civil war,.



Next: The impact of Up: Employment and income Previous: Political-economic stability


norman@eco.utexas.edu
Thu Jun 8 16:37:44 CDT 1995