What were the major features of economic change in Europe in the period 1500-1914 - Essay Example

?What were the major features of economic change in Europe in the period 1500-1914? Introduction Europe from 1500 to the 1914 enjoyed a time of fiscal and economic progress. Significant economic growth was seen during this time and major developments in industry and technology was very much apparent. This period also marks a time of population growth which clearly impacted on the economic developments being experienced by many European nations during this time. This paper shall discuss the major features of economic change in Europe in the period of 1500 to 1914. The economic changes in United Kingdom and on Germany shall be highlighted for this paper. Body In general, from 1750 to 1914, economic changes in Europe included the introduction of railroad use in the transport of goods. These railroads also helped usher in urbanization and a continuity of the imperialism goals of Europe with the spread of their trade with other countries and with the expansion of political linkages (North Penn School District, 2002). Within this same time period, major economic changes were also seen, especially with the increase in commercialized activities ushered in by improved methods in the transport of goods. It also marked a time of improved communication, with common activities involving territorial expansion and exploration (North Penn School Disrict, 2002). Europe’s economic activities also shifted from imperialistic goals to colonization activities as Europeans were now considering expansion as a means of gaining advantage over their competitors. This period also marked a time where the European economy shifted from agricultural activities to industrial activities. Homemade goods became factory made and more raw materials were transported from their various colonies. This led to a significant increase in their production of food, clothing, and other products. The motivation to expand at this time was a major goal for Europe and these goals also shifted towards the acquisition of more lands. The colonies also became major sources of raw materials for Europe and as such, Europe was able to rise as a major global economic power. Its attention now shifted from imperialistic to colonialist goals. And this shift in goals was seemingly dictated by its access to mercantile goals (North Penn School District, 2002). Due to these shift in goals, Europe was able to concentrate its activities toward more industrial goals, expanding its economic activities beyond the ability to feed its population. As a result, it became a major player in trading with its neighbours and with the rest of the world. Two major events were seen from the 1500 to 1914 in Great Britain. This period saw the birth of Industrial Revolution and the manifestation of Demographic Transition (Clark and Cummins, 2009). The Industrial Revolution marked a time of rapid economic growth and the introduction of new innovations. Before the Industrial Revolution, the concern of the governments was to increase population, not to improve their lives. Before the industrial revolution, the higher income population had higher overall fertility rates. Without the industrial revolution, an even greater increase in the population would have been seen (Clark and Hamilton, 2006). Eventually, in England, increased rates in marriage became apparent in the 1890s, however, substantial decrease in fertility rates were seen with the introduction of industrial activities. Hence, the focus of the people and of the government was turned towards decreasing population growth. After 1910, the focus also was turned towards improving the lives of the people – their standards of living – and this saw further possibilities for Britain in improving the potential of the population for more scholarly work (Clark and Cummins, 2009). The Demographic Transition Period was seen from 1870 to 1910. This marked a general decline in net fertility. What was started during the industrial revolution manifested during the period of demographic transition (Clark and Hamilton, 2006). The modern society manifesting in Britain was one which combined the low fertility levels as well as improvements in the nurturing and education of children. In effect, an increase in human capital was seen. The focus of the government and of parents now leaned towards improving the potential of their children as well as their children’s ability to contribute in general society and in the country’s economic growth and progress (Clark, 2005). This period marked a time where the governments also realized that there was a negative relationship in modern populations between the number of children and the quality of people’s lives (Clark and Cummins, 2009). In addition to economic progress in Britain, the rest of Europe was enjoying the Second Industrial Revolution. This time period also introduced the age of steel. Steel is considered more superior to iron and more inexpensive to use. At this point, there arose a need to make steel cheaper; and this issue was resolved by Henry Bessemer in 1856 who invented the converter. The Bessemer converter was able to combine the right amount of iron and carbon in order to make the best quality of steel (Mokyr, 1998). More developments in steel manufacturing were later introduced and this ensured that the product could be made at a cheaper cost and with superlative quality. With steel marketed at a cheaper prize, more buildings were made and more industries benefitted from the improved features of this second age of the industrial revolution. Aside from steel, more chemicals were also invented and formulated, and the Germans were particularly accomplished in this regard. Chemicals which were related to agriculture were also invented, with fertilizers making their way into the market and helping benefit the agricultural industry (Mokyr, 1998). These German chemists would also discover artificial dyes, which later benefitted the garment industry, providing variety to the market and ensuring the viability of the clothing industry which was long been dominated by the East (Mokyr, 1998). Soda-making also resulted from chemical inventions. With Alfred Nobel’s invention of dynamite, the making of railroad tracks, tunnels, roads, and oil wells became faster, easier, and more economical (Mokyr, 1998). Other chemicals would also be introduced during this time period and these chemicals were used by manufacturers and by the people in order to make their work easier and to establish ways to improve their products. In order to further support and assist the industrial and economic progress being gained during this time, electricity was also invented. Its potential became endless for the industries and with electricity other innovations would soon follow. Communication lines were also improved with the birth of telegraph lines (Mokyr, 1998). The transatlantic cable was also laid out and it assisted the communication process, lessening travel expenses and general economic costs. Electric railways would follow the use of electricity; and light bulbs were soon invented. With the use of electricity, transportation processes were significantly improved. Railroads soon became faster and safer, with lesser energy wasted and therefore with less costs allocated to transportation expenses (Mokyr, 1998). Ships would also be revolutionalized at this point, with many of them built out of steel. Larger ships would also make their way out to sea, and transportation across the oceans became faster and easier (Mokyr, 1998). With all these innovations being introduced, the general economy was benefiting well through lesser production costs and higher profits gained (Kinghorn and Nye, 1995). The agricultural and food processing industry also benefitted with better ways of preservation and lesser waste seen during the production and transport process. The garment industry would also benefit with the invention of the sewing machine (Mokyr, 1998). Garments became more readily available as they were mass-produced at cheaper rates. With lesser labour costs and time involved, these garments became more accessible to the people. More profit was also gained by the manufacturers who were gaining many advantages from labour-saving devices and lower transport costs. Germany only emerged as a major industrial force during the late 19th century. The major challenge it had to conquer first was how its natural challenges as a large and land-locked country (Pfister, 2008). Before the railways would connect its territories, Germany had to deal with high transport costs which often made the transition from agricultural to industrial development difficult. With the entry of the railway system, massive migration soon followed and the shift from low productivity to mass productivity soon became apparent (Pfister, 2008). With its share in the fixed capital formation and with its investments in the engineering railways construction, it was able to eventually enjoy economic growth (Burhop and Wolff, 2007). Germany entered the period of industrial revolution with a high welfare level which was caused by the development of its urban exports, mining, and its metallurgy within the southern areas of Germany (Pfister, 2008). However due to the significant pressures it experienced during the 16th century, it was considered one of the poorest European nations. During the 17th century, it started to recover and establish an economic pace similar to Britain, however its population losses from flood and epidemics did not significantly improve its pace (Pfister, 2008). Germany was eventually able to recover its losses and improve its productivity and economy by the latter part of the 19th century when the progress which Europe was experiencing also started infiltrating its borders. Improvements in Germany’s economic progress also became apparent as it was finally able to overcome its population and economic issues. Conclusion The changes seen in Europe from 1500 to 1914 were mostly based on industrial progress. There was a major shift from the agricultural to the industrial processes which was marked by increase in profits and the use of numerous technological innovations. In general, Europe was able to take advantage of these innovations in order to reduce transportation costs, as well as other related production costs. With more profits gained, the expansion of businesses grew at a rapid pace. Moreover, the trading activities expanded to include a larger geographical area, allowing for the crossing of products across borders with minimal transport costs. In Germany, its issues as a land-locked state, as well as its population losses from floods and epidemics delayed its progress. It was only able to enjoy economic progress towards the later 19th century. Credit however must be given to Germany for its contributions to chemical innovations which have assisted Europe in its economic gains and technological progress. All in all, the 1500-1914 time period marked a period of major economic progress and industrial gains for Europe. The expansion and developments were significant and they provided the foundation for the current economic progress which the region has since enjoyed. References Burhop, C. & Wolff, G. 2005. A compromise estimate of German net national product, 1851–1913 and its implications for growth and business cycles. Journal of Economic History 65, pp. 613–657. Clark, G. 2005. Human Capital, Fertility and the Industrial Revolution. Journal of the European Economic Association, 3 (2-3), pp. 505-515. Clark, G. & Cummins, N. 2009. The Origins of Modern Growth: Fertility and Human Capital in England, 1500-1914. Queens College [online]. Available at: http://people.qc.cuny.edu/Faculty/Neil.Cummins/Documents/Clark%20and%20Cummins%20WP%202009.pdf [accessed 23 January 2012]. Clark, G. & Hamilton, G. 2006. Survival of the Richest. The Malthusian Mechanism in Pre-Industrial England. Journal of Economic History, 66(3), pp. 707-36. Kinghorn, J. & Nye, J. 1995. The scale of production in Western economic development: a comparison of official industry statistics in the United States, Britain, France, and Germany, 1905-1913. Journal of Economic History, 56(1), pp. 90-112. Mokyr, J. 1998. The Second Industrial Revolution, 1870-1914. Northwestern University [online]. Available at: http://faculty.wcas.northwestern.edu/~jmokyr/castronovo.pdf [accessed 23 January 2012]. North Penn School District. 2002. Economic changes in Europe in 1750-1914 [online]. Available at: www.npenn.org/.../lib/.../ccot_-_hegemony_thesis_exercise.doc [accessed 23 January 2012] German economic growth, 1500–1850 Pfister, U. 2008. German economic growth, 1500–1850. Westfalische Wilhelms-Universitat Munster [online]. Available at: http://www.cepr.org/meets/wkcn/1/1714/papers/Pfister.pdf [accessible 23 January 2012]. Read More