Economic History of Europe - Industrial Revolution

Industrial Revolution

The Industrial Revolution brought factories to Europe, especially England and Scotland, 1750s to 1830s. France and the U.S. experienced its industrial revolution in the early 19th century; Germany in the 19th century; and to Russia in the mid 20th century.

In Britain, the Industrial Revolution was a period of economic transformation from the 1750s to the 1830s, characterized by the growth of a new system comprising factories, railroads, coal mining and business enterprises using new technologies that it sponsored. The new system operated first on textiles, then spread to other sectors and by the mid 19th century totally transformed the British economy and society, setting up sustained growth; it spread to parts of America and Europe and modernized the world economy. Although localized to certain parts of Britain (the London area was not included), its impact was felt worldwide on migration and trade, society and politics, on cities and countryside, and affected the remotest areas. The growth rate in the British GDP was 1.5% per year (1770-1815), doubling to 3.0% (1815-1831).

Success in building larger, more efficient steam engines after 1790 meant that the cost of energy fell steadily. Entrepreneurs found uses for stationary engines in turning the machines in a factory or the pumps at a mine, while mobile engines were put into locomotives and ships (where they turned paddles or, later, propellers). The use of water power was growing too, so that in 1830 steam mills and water mills were about equal (at 165,000 horsepower each); by 1879 Britain obtained 2.1 million horsepower from steam engines, and 230,000 from water.