The British Economy After 1870

1358 WordsApr 17, 20166 Pages
The British economy before 1870 was recognizable as an industrial economy. Britain alone was responsible for about a quarter of total world trade. Britain’s dominace was driven mainly by its plentiful supply of water power, coal and iron, and a relatively large pool of wage-workers, giving it crucial economic advantages at the start of the industrial revolution. The economy, however, after a period of stability, experienced a phase of decline after 1870. According to Supple this decline refers to traceable process whereby Britain diminished as a world power(Supple, 1994). Being the world’s leading industrial nation, the shape of the British economy changed to sixteenth in economic performance (Alford, 1996). This was caused by a number of factors related to what had been achieved earlier in the century and in comparison with Britain’s principal overseas competitors, Germany and USA. As far as economic decline it is consider, it is important to refer to GDP and productivity. Germany had greater industrial production per capita and the United States had joined Australia in having higher real GDP per capita and standard of living over Great Britain( Kitson and Michie, 2014). Such decline led also to low investment both in machinery and training of workers, the inadequate in management, and mistaken government policy and organizational failure. This paper seeks to examine deceleration of British economy from its position as the 'workshop of the
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