second industrialization summary

Second Wave of Industrialization (1870-1914)

Europe underwent a significant industrial transformation, mirroring the first industrial wave but on a larger scale. By 1914, the factory system dominated production, marking a transition from handmade goods to mass production.

Key Developments

  • Krupp Family in Germany: Pioneered steel manufacturing; became a global arms supplier.

  • Manchester, England: Recognized as the first industrial city with specialized manufacturing areas, leading to economic prosperity for its citizens.

Technological Innovations

  • Electricity and Communication: The telegraph, invented by Samuel Morse, revolutionized communication. By the 1870s, a transatlantic telegraph wire intensified global economic ties.

  • Chemical Engineering: Innovations like vulcanization enhanced materials, particularly rubber, used extensively in machinery.

  • Railroads: Expanded significantly during this era, reshaping transportation and facilitating urbanization and commerce.

  • Internal Combustion Engine: Shifted reliance from steam power to gasoline, spurring the automobile industry, pioneered by figures like Henry Ford.

Consumerism and Advertising

The late 19th century saw a surge in demand for consumer goods, leading to the rise of department stores and the advertising industry. Advertising played a crucial role in maintaining consumer demand, establishing shopping as a leisure activity.

Economic Challenges

The Long Depression (late 19th century) stemmed from monetary scarcity. Governments issued paper money backed by gold, causing financial strain and unemployment. Corporations attempted to form monopolies, while governments utilized protective tariffs to support domestic industries, albeit often leading to trade wars.

Prussia's Industrialization

Prussia’s rapid industrial growth, fueled by coal and iron resources, established it as a powerful economic force. The Solvarein Agreement in 1834 lowered trade barriers, boosting economic unity among German states, a precursor to their political unification. The national system promoted tariffs to protect nascent German industries until they could compete globally, leading to success by the early 20th century.