4. Industry and Commerce

Industrialisation

start when and why at that time

18th century, earlier than in other Europ. countries due to:

• moderate climate & topography

• political stability

• accessible deposits of coal & iron

• availability of labourers

• availability of capital

• potential markets

Industrialisation: “Workshop of the World”

UK as most powerful economy worldwide over majority of 19th ct

around 1850:
-UK coal & raw iron production abt as much as rest of europe combined

-cotton processing uk: 267000t, rest of europe: 162000t

-UK responsible for c. 28% of all industrial goodds and c, 25% of all trade worldwide

Industrialisation: Social & Cultural implications

• Population growth, particularly in cities

→ overcrowding

→ bad sanitation

• Standardisation of daily life & products

• Availability of mass-produced products

Transport revolution

before: transport by foot or if rich, by horse

-building of canals btw. industrial centres in 1800: move heavy goods

-invention of steam engine: development of railway: first railway between liverpool and manchester 1830 → private companies, not centralised

-1845 many new railways → excitement, overwhelm

-railway makes people who would have never met be able to communicate

transport revolution

shipbuilding and merchant navy

19th century: shipbuilding as important part of UK economy

→ biggest merchant navy in the world

decline during 20th century

The Rise (and Fall?) of Trade Unions

• around 1800: ‘combination’ of workers prohibited

• from 1825: trade unions allowed (restrictions)

• Trade Union Act (1871): greatly expands rights of TUs, including the right to strike

• in the 19th cent., many small unions for skilled workers (→ special interests)

• 20th cent., growing importance of nation-wide unions, e.g., National Union of Mineworkers (NUM), and the supra-structure Trade Union Congress (TUC)

• political influence through Labour Party

The 1970s & 1980s – Oil Crisis

-stop selling oil to certain countries → high inflation:
Unions demand higher wages

Miners strikes in 1972 & 1974

he 1970s & 1980s – Winter of Discontent (1978/79)

• Background: ‘social contract’ with unions to limit wage increase to bring down inflation (1975-77)

• No new agreement reached • Series of strikes

• Cold winter isolates part of the country

• PM James Callaghan (Labour) denied there was a serious situation

• Elections in May 1979 bring Tory victory → Margaret Thatcher becomes PM

he 1970s & 1980s – Miner’s Strike 1984/85

National Coal Board announces closure of 20 mines, loss of 20,000 jobs

• Strikes against the closure of coal mines

→ not backed by nation-wide vote
→ not backed by TUC
→ labelled ‘illegal’ strike
→ only affected some coal fields
→ led to divisions within NUM

• Pitted PM Thatcher against NUM president Scargill

• Thatcher on unions: “the enemy within”

• Strike ended after almost a year, without any NCB concessions
→ more closures of mines followed

20th Century: Decline of UK Industry

1950: 30% iof UK wealth came from manufacturing

2016: only 12%

Rise (and Fall) of the Department Store

Shopping becomes leisure activity (for the rich) during the later 18th century

• Employment opportunity

• Turn 19th/20th cent.: cultural institutions
→ e.g., Harrods

• From 1950s, national chains
→ e.g., Debenhams

• 21st cent.: online shopping leads to decline/demise
→ e.g., Debenhams liquidated 2021

Financial Market – Banks

• Bank of England founded 1694
• Bank of Scotland founded 1695
• 18th century: numerous banks established
• late 18th century: “merchant banks”
→ Rothschild & Baring prominent
• 1930s banking services offered to less wealthy
• 1980s increased deregulation
→ massive expansion of banking sector

UK Currency (before 1971)

Pound / Shilling / Pence (£/S/d)

12 Pence to the Shilling, 20 Shillings to the Pound

Legal System(s)

‘Civil Law’ – historically derived from Roman law, based on legal principles, codified e.g. “Code Napoleon” or “Bürgerliches Gesetzbuch”
→ legal system in most of continental Europe

‘Common Law’ – customary law, based upon judicial decisions in previous cases (precedent)
→ legal system in England, the USA and many countries of the former British Empire

‘Statute Law’ – system of law set down by a legislature (i.e., parliament) in written statutes (also: statutory law)