6.3 - Second Wave Industrialization and Its Effects

The Second Wave of Industrialization (1870-1914)

Introduction:

• From 1870 to 1914, Europe experienced the Second Industrial Revolution, an extension and intensification of the changes brought about by the first wave of industrialization.

• By 1914, the factory system had become the dominant mode of production in Europe, further transforming the social, economic, and political landscape.

Krupp Family and the Steel Industry:

• The Krupp family in Essen, Germany, played a crucial role in the steel industry, perfecting steel production by 1870. Their dominance in the industry made Krupp Industries a major supplier of weapons to states across Europe and the world.

Manchester, England – The First Industrial City:

• Manchester became the first true industrial city, housing the first Industrial Park specifically designed for manufacturing. The city’s focus on industry led to a rise in the standard of living for many of its inhabitants and contributed to the city’s wealth.

Technological Innovations:

• Electricity and Communication:

  • The invention of the telegraph by Samuel Morse in the 1840s revolutionized communication, allowing messages to be sent across long distances using Morse code. By the 1870s, a telegraph wire connected Britain and the United States, linking their economies more closely.

• Chemical Engineering:

  • Vulcanization, a process that made rubber more durable, became crucial for manufacturing and the coating of electrical wires.

• Railroads:

  • Railroads became the dominant mode of transportation, linking distant parts of countries into national economies and facilitating urbanization by moving people from rural areas to cities.

• Internal Combustion Engine:

  • The rise of the internal combustion engine, powered by gasoline, led to innovations like gas-powered tractors and automobiles, further advancing transportation.

Rise of New Industries:

• The development of new technologies led to the growth of industries like the automobile industry, with figures like Henry Ford establishing manufacturing sites in Europe, including Manchester, England.

• The use of streetcars for urban transportation and the emergence of a leisure travel industry were direct results of these advancements.

Consumer Culture and Advertising:

• The increased availability of consumer goods at low prices gave rise to the advertising industry, as companies needed to differentiate their products in a competitive market.

• Department stores became popular, especially among middle-class women, turning shopping into a leisure activity.

Economic Challenges and Responses:

• The Long Depression in the late 19th century, caused by a scarcity of money, led to economic challenges like increased unemployment.

• Corporations responded by attempting to create monopolies, while governments used protective tariffs to shield domestic industries. Some nations developed free trade agreements to avoid the negative effects of trade wars.

Prussian Industrialization and Economic Unification:

• Prussia’s rich deposits of coal and iron fueled its rapid industrialization, which contributed to the economic unification of the German states.

• The Zollverein Agreement (1834) lowered trade barriers, boosting industrial growth across the German states.

• The National System developed by economist Friedrich List protected nascent German industries with tariffs until they could compete with British manufacturers, leading to significant industrial progress by the early 20th century.