The “correct” economic pattern used in a country and form of government has been a massive debate throughout history. In developed countries the dominant economic pattern is usually capitalism and the government is usually some form of democracy. Capitalism has allowed for the growth of vast private owned business empires. The growth of these businesses have led to rapid development in the countries in which they are based. Today the thought of a developed county using an economic pattern different from capitalism is almost unheard of but how did such a widely adopted pattern spread in the first place? Capitalism first started to emerge around the 1700s just before the industrial revolution. Before the age of Capitalism properly started to begin the dominant economic pattern was mercantilism. This system was mainly based on trading and selling items for a profit. However, this pattern began to become inadequate due to the increased demands of the industrial revolution and industrialisation. Industrialisation made capitalism into the dominant economic pattern in Europe form the 1740s onwards. This is due to increased productivity, the development of a consumer based society and advanced transportation to support globalisation and global markets.
At the beginning of the industrial revolutions factories sprung up all over the British country side and later Europe and the United States. These factories were powered by water from rivers, steam and coal. In these factories people of all ages and genders toiled endlessly creating products for wealthy capitalist or factory owners. Industrialisation didn’t occur over night. The agricultural revolution, which occurred before the industrial revolution began, had allowed for a large work force and had paved the way for factory owners to enlist the unneeded excess farmers. The new agricultural machinery invented during the agricultural revolution led to a surplus of food being harvested people flooded into the towns and cities looking for jobs. This allowed for factory owners to snatch all of the unemployed workers and put them to work in their new factories. These new factories led to a massive increase in productivity. With thousands of people working tirelessly in cruel conditions business boomed. The people who worked in these conditions lived in the filthiest and most polluted conditions in Europe, such as the city of Manchester, yet made millions for their employers. The conditions are clearly described through the quote; “From this foul drain pure gold flows forth.” Wealthy capitalists made millions, as stated in the quote, and were able to support the countries in which their businesses were built in through taxes. Industrialised countries became rich in resources and were able to produce consistent products at an extremely quick pace. These countries were growing economically extremely quickly and became the perfect grounds for capitalism to thrive.
Newly industrialised countries became resource rich. This meant that the price of products fell significantly, which may seem like a bad thing, however, in response to this a consumer based society began to emerge. Before the industrial revolution people could only afford the necessities but as everyday commodities and food became cheaper people could afford more luxuries. This led to a new business that revolved around the demands and needs of the common people. A new consumer based society facilitated capitalism’s rise to dominance, since the living conditions of the poor improved. Even though the living conditions did not improve immediately overtime wealthier nations were able to help enhance working class lives. Despite capitalism not being the ideal economic pattern for supporting the poor, it did in turn lead to improved living standards and wealthier nations which would have meant public support for it. Furthermore, a consumer based society also abided by new enlightenment ideas.
Originally published 15.10.2019