Economic Changes

Mercantilism

Mercantilism is the economic theory that states that more exporting than importing will lead a country to profit, and eventually, power. Mercantilists usually thought that all the money in the world was limited, and that loss for one country meant profit for others. The spread of mercantilism, which in turn led to a keen desire to produce in order to export, led to the development of a skilled labor force in Britain . Additionally, it led to the popular opinion that building the British navy and ships was very important, since waterways were the sole means of export during the time period.

The Guild System

The guild system, which existed primarily during the Medieval Ages in Europe , was declining before the Industrial Revolution. With the Guild System, a group of owners for a particular business formed a “partnership” that enforced something similar to a monopoly in any industry. Guilds existed among craftsmen and merchants, and they protected consumers of English products in many ways, but they also discouraged people outside the guild to start a new business – since the guild had the power to dismantle and run opposition out of business.

Banks

Another financial change that encouraged the Industrial Revolution in Britain was the development of a new, central banking system. Expansion in England led to trading organizations such as the Asiatic League, and state banks, bourses, and promissory notes promoted exchange. All this created economic stimulus, which gave the British people more money to spend.

More Opportunity for the Common People

Feudalism barely existed in Europe during the 18 th and 19 th centuries, but it was completely inexistent in England . The absence of Feudalism meant no serfdom was practiced in Great Britain and people were seldom bound to land. This gave them freedom to go to cities. A substantial amount of rural peasants flocked to the cities with high hopes for a brighter future since farming was unpredictable and unreliable during this time.

The guild system, which existed primarily during the Medieval Ages in Europe , was also on a decline before the Industrial Revolution. With the Guild System, a group of owners for a particular business formed a “partnership” that enforced something similar to a monopoly in any industry. Guilds existed among craftsmen and merchants, and they protected consumers of English products in many ways, but they also discouraged people outside the guild to start a new business – since the guild had the power to dismantle and run opposition out of business.

Since both feudalism and the guild system were inexistent in Great Britain in the 18 th and 19 th century, brighter futures and new ideas were not restricted merely to the elite.

Sources:

"The Industrial Revolution." Transfer of ideas . Wikipedia. 25 Dec. 2005 <http://en.wikipedia.org/wiki/Industrial_Revolution#Transmission_of_innovation>.

"Intellectual History." The Printing Press . The History Guide. 26 Dec. 2005 <http://www.historyguide.org/intellect/press.html>.