Are Industrialization and the Economy Good?

Industrialization refers to the transformation of an economy from primarily agricultural production to mass-produced, technologically advanced goods or services. This stage is marked by rapid leaps in productivity and shifts from rural labor to urban, as well as higher standards of living. Industrialization is the most significant economic development in human history, according to common measures, like income per person or labor productivity.

 

KEY TAKEAWAYS

  • The economic development of the globe has been aided by industrialization.
  • This process has led to increased productivity and mass production which has resulted in higher standards of living.
  • From the agricultural age of 8000 to 5500 B.C., human productivity and living standards have remained relatively constant. From the beginning of industrialization in Great Britain in 1760, it was a slow process.
  • Industrialization has led to more goods being produced in a shorter time frame, increased leisure and recreation time, and increased real incomes.

The Industrial Revolution of 18th and 19th century saw the most significant industrial changes in Western countries. Four significant national industrializations are what economic historians point out.

 

  1. Between 1760 and 1840, Great Britain was at the forefront of industrialization.
  2. The Industrialization of the United States between 1790 and 1870.
  3. Unmatched industrial gains in Japan between 1880s & 1970.
  4. From 1960 to the present, China’s industrialization.

 

Economic Growth

There are a few ways to generate real economic growth. Trade specialization is the first. This is when a worker is more capable of performing an activity due to education, training and insight. As actors seek to increase their trade gains, specialization is a natural process.

Second, improved capital goods are another known method. Better tools can lead to greater productivity per hour. An 18-wheeler is able to transport goods far more efficiently than someone who carries a backpack and a bike.

 

Exploiting previously untapped resources is the last way to increase productivity. This method can be illustrated by the discovery of oil wells during the 1850s and the invention of the Internet.

 

The cost of purchasing those goods falls when more goods are produced quickly. Individuals and families can purchase these goods more easily due to falling real costs. This improves the standard of life. If productivity did not increase, many families would have to pay more for refrigerators, cars, computers, televisions, electricity, running and other goods.

 

Industrialization and growth

The Federal Reserve branch in Minneapolis estimates that human productivity and the corresponding standard of living remained virtually unchanged from the beginnings of the agricultural age to 1750 A.D. 1. The capitalist economy saw a dramatic increase in the per capita gross domestic product (GDP). This figure had been stable for thousands of years. 1

 

Deirdre Mcloskey, an economic historian, wrote in 2004 in the Cambridge University Press that industrialization was “certainly” the most significant event in human history since the domestication and use of animals and plants. ” 3 Not everyone agrees on the spark that sparked the Industrial Revolution. Economists cite the changes in British legal and cultural foundations that allowed for free trade and gave entrepreneurs the freedom to innovate and take risks.

 

The Industrial Revolution: Progress

marginal productivity soared dramatically during this time due to the introduction of capital goods such as steam engines and the mastery over new production techniques such as assembly lines. In relatively short time, it was possible to produce more goods. Better food and population growth were supported by better nutrition. Education, innovation, and recreation were given more time. The average real income grew dramatically, which only increased demand for higher quality goods and services.

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