2011年3月1日 星期二

The change of European economy during the 19th century


During the 19th century Europe was the first place in the world to experience the fundamental shift from agriculture to industrialization. In other words, they went from farming to factories. It was the birth of capitalism.  
It all began with new technology and processes that made farming more efficient and therefore one farmer was able to produce much more food than he needed for his own family, creating a surplus. At that point many people were free to do something besides farming since one farmer could feed many other workers. This created a surplus of labor which moved to the city to find work in the factories and thus the process of urbanization accelerated. People who worked in factories made more money than famers and so they could buy more goods. The production of goods in factories allowed entrepreneurs to build up a lot of capital which they reinvested in even more technology and capacity.
            The other major change in the economy of 19th century Europe was the move to specialization of labor. This means that instead of a single craftsman making a product, the steps to make something are broken down with every worker on an assembly line given a small and very specific job. This broke down the old European guild system because most people only had to learn how to do a small task instead of mastering a life long skill.
            In conclusion, the move from farming to factories caused by technological innovation created an industrial and urban society from an agricultural and rural one.