The Consequences of the Industrial Revolution in Great Britain (the Standard of Living Debate) and the Free Trade Era in Europe.

The advent of industrialization in the early nineteenth-century had wide reaching impacts on economics, politics, society and demographics. Overall, the transition from an agrarian and feudal system of production to an industrial and capitalistic system improved the average standard of living and working conditions. It not only led to greater opportunities for people, both proletarians and bourgeois, to accumulate wealth in a market economy, but also ameliorated social service and product quality. In a word, those modifications and innovative ideas formed caused significant changes and eventually shaped the face of the modern world.

From around 1750 to 1900 Britain went through major changes or transformation in industry, agriculture and transportation that affected everybody’s lives. For some it generally improved their lives, however not all were so lucky. The industrial revolution brought with it many changes good for some and bad for others.

The Industrial Revolution occurred in Britain and America around the late 1700’s to 1900. This revolution improved the production of goods using new mechanisms and machines. Human labor was in high demand in order for the highest production rates. Factories employed low to middle-class people that were as young as three years old (Document 9). These workers were benefited with money, shelter, and clothes, but the working and living conditions were not satisfying. The average industrial worker experienced a variety of factors that can be classified as good or bad, including the positive effects of labor, like the shelter, money, and food they were given; and the negative effects of the factory,

T.S Ashton defends the optimistic view of England’s industrial revolution using the following arguments and evidence. He claims that although there may have been other factors influencing the increase of the standard of living in the late eighteenth and early nineteenth centuries, there is no denying that the industrial revolution greatly contributed to the improvement in England (17). The comfort and conditions for workers had begun to improve after the war—and undoubtedly after 1821—due to the rebuilding of the country’s economy, falling costs, and resources being more plentiful (19-20). Using Mr. Imlah’s figures, Ashton calls attention to the falling price of cotton, which did not affect the laborers’ wages, and was due to improvements in

If each country specializes in areas where its advantages are greatest or disadvantages are least, the gains from trade will make each country better off than it would be if it remained self-sufficient. [3]

How has the standard of living changed since the industrial revolution: In a positive way. Since the industrial revolution there have been so many career fields opened and a lot more fields means more jobs open.

The topic I have chosen to discuss related to the last 400 years in Western Civilization is the industrial revolution in Britain. The industrial revolution was what created the modern capitalist system. Britain was the first to lead the way in this huge transformation. Technology changed, businesses, manufactured goods, and wage laborers skyrocketed. There was not only an economic transformation, but also a social transformation. The industrial revolution is such an interesting subject to further explore, because it truly made a difference in Britain in the late 1700s. The industrial revolution brought an increased quantity and variety of manufactured goods and even improved the standard of living for some individuals, however, it resulted in grim employment and living conditions that were for the poor and working classes. The industrial revolution had a bright and dark side to it. It was dark due to all the horrible working conditions, crowded cities, unsanitary facilities, diseases, and unsafe work environment, but the bright side is that it was a period of enormous social progress.

When evaluating the benefits of free trade, the first economic concept we must look at is comparative advantage: the comparative benefit one nation has over another in the production of a

Comparative advantage is a little trickier. Here you have to do the math or analyze which country or company has the best opportunity cost. In other words, in order for a country or company to have a Comparative advantage, their production goods have to be produced at a lower opportunity cost relative to another company or country.

According to Colander, "The reason two countries trade is that trade can make both countries better off" (2004, p. 416). In economics, the theory of comparative advantage clarifies why it can be advantageous for two countries to trade, even though one of them may be able to produce every kind of item more cheaply than the other. What matters is not the absolute cost of production, but instead, the ratio between how easily the two countries can produce different kinds of goods. The basic idea of the principle of comparative advantage is that as long as the relative opportunity costs of producing goods differ among countries, then there are potential gains from trade.

A comparative advantage states that aggregate output is maximized when countries specialize in the production of goods for which they are the lowest opportunity cost producer, and then trade for other goods. This explains how countries can improve their situation through trade, rather than producing all goods themselves.

As each country specializes in its comparative advantage product, this means that they can produce it at a lower cost than those countries importing this product from them. Pre-trade the home country was producing its comparative disadvantage

This means it does not matter if country A can produce more overall than country B, as long as B can produce it more efficiently than country A. Country B will choose to produce that product and then trade it with country A. When a country focuses on a good that it is efficient in producing for a lower price then they increase national income and company’s increase profits. An example of comparative advantage: Country A can produce 28 bikes and 4 radios, Country B can produce 32 bikes and 12 radios. Country B has an absolute advantage in both products but it has a comparative advantage specifically in radios because it can efficiently produce 3 times more for less than Country A (Economics Online, 2017.)

Comparative advantage: it is one of the most important concepts in economic theories. It is referring to the ability of any country to produced goods at a lower opportunity cost than other county. If there is the trade-off between the 2 products when determined time is limited country must give up labor units of one product to produce other product at this time this country has a comparative advantage proportional with relatively more effective.