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What changes did the Industrial Revolution bring to the global economy?

Kaycee Kruis

As a seasoned social media user, I would be remiss not to share my thoughts on the impact of the Industrial Revolution on the global economy. Let's face it, without the Industrial Revolution, we wouldn't be scrolling through Insta, TikTok or Twitter right now! So, without further ado, let's deep dive into the economic changes brought about by this technological milestone.

The Industrial Revolution was a game-changer for the world economy. Prior to the Industrial Revolution, the economy was agrarian-based and relied heavily on farming and agriculture. However, with the invention of new machinery, factories, and assembly lines, the world of manufacturing and production opened up in unprecedented ways. Mass production allowed goods to be produced at a faster rate and at a lower cost, driving prices down and demand up.

From textiles to machinery, the creation of new products and the increase of the supply chain allowed larger markets to emerge. With new factory jobs opening up in urban areas, a wave of urbanization took place, resulting in a bustling labor force that could now afford consumer goods. The shift in goods and services to even those that we might consider “luxury” such as fashion and cosmetics, was fostered by the industrial revolution because they became more affordable and accessible to people.

Also, increased transportation made trade easier and faster, opening up global markets and creating opportunities for businesses to expand beyond borders. This not only led to the increase in imports and exports but also enabled countries to specialize in the production of specific goods.

Perhaps the biggest change that the Industrial Revolution brought about was the development of capitalism. Before the Industrial Revolution, much of the world’s economy was based on bartering, with goods and services traded for other goods and services. Capitalism allowed for the accumulation of capital and the growth of companies to flourish. More and more, wealth was concentrated in the hands of the few.

However, the effects of the Industrial Revolution were not all positive. With the increase of production, worker exploitation, pollution of the environment, and monopolies began to emerge. This, in turn, led to the push for labor laws, safety regulations, and environmental protection laws that remain in effect today.

In conclusion, the Industrial Revolution was a crucial turning point in the history of the global economy, laying the foundation for the modern economy that we know and love today. It revolutionized the way goods were produced and consumed, opened up international trade, and, whilst not without negative consequences, enabled capitalism at its core to become the predominant force shaping the economy. Pretty cool how innovations in the past can wield such powerful influence across generations, isn’t it?