Figure 1.--Britain in the 19th century became the preminant industrial power of the day, although America and Germany had become major competitors by the end if the century. One impact of industrialization was that England lost the ability to feed itself. And as late as the 1930s, English agriculture was not mechannized. Here we see hay making with oxen pulled waggons in 1927. And English agricuture was some of the most efficent in Europe. Unmechanized farming meant expensive food and a drag on living standards. The reliance on imported food resulted in German U-boat campaigns to starve Britain out of World war I and II. This early color image is from the Biocolour film, 'The Open Road'.

The history of the English economy is an especially important subject. Until the 18th century, it was like other countries, primarily reliant on agriculture. Pastoral profuction of wool was especially important. And as England became a seafaring nation (16th centyry), trading became important as well. Then all of a sudden the industrial revolution took hold which transformed not only England, but eventually the world. A student of both economics and history has to explain why the various social, political, and economic forces came together in England during the 18th century to create the first modern economy. The economy of medieval England was based on the wool trade. Before the 18th century several important elements were in place needed for a modern economy. Laws protected private property even from royal excesses. The English appropriated capitalism which the Dutch invented. And social attitutudes a well as laws protected and even promoted free thought, including scientific inquiry which led to practical applications. This combined with the availability of key natural resources (coal and iron) led to the industrial revolution (mid-18th century). The first steps were to develop textile weaving machines. The need for efficent naval construction also helped bring about the industrial revolution. The result was an extrodiarily efficent economy and the creation of great wealth. At about the sane timne, the loss ofthe American colonies (1783) taught the British an important lesson, to allow the colonies to participate in free trade with relatuively few trade limitations compared to the other European empires. The economy allowed England to resist Napoleon and to emerge after the Napoleon as the preminent world power. The United States followed the English system, only without an empire. The English capitalist economy is often accused of creating poverty. In fact it was along with democracy the beginning of modernity. Here the role Britain played in advance of science would be a major factor in Britain's industrial power and its survival in the two wars with Germany. This can be measured with Nobel Prize Awards. Germany dominated the Nobel Prize awards, but Britain was a close second. World War II and the German onslaught against Jews knocked Germasny out of its leadership role, but even before this Britain was a close second. After World War II, America dominated, but Britain continued to be the secomd most imprtant country. Throughout history the primary sector for any substantial civilization was agriculture. This began in Sumeria at the dawn of civilization. Agriculture made civilization possible. And this was true for Neolithic Britain as well. Although mining was also of some importance, especially with the advent of the Bronze Age. This was because tin was found on the British Isles. It was the beginning iof the miming sector. Copper was found in multiple areas, however, tin was much rarer. And tin was needed to make bronze. As a result, even with primitive maritime technology, ancient merchants found their wear to Britain. And this need for tin continued throughout the ancient and early medieval eras. During the medieval era, agriculture was the foundation of Feudalism. In Britain's case wool became very important. The modern European economy began in Italy with the Renaissance, but gradually moved north to the Low Countries, here the foundation of the economy became textiles. This did not include England, but England benefited because with its rich pasturage, it was the perfect place to produce wool, the raw material for the textile production in the Low Countries. British monarchs controlled the wool trade and tried to increase actual textile production. Gradually in the early modern era, agriculture continued to be important, but with the economy moving from feudalism to mercantilism, foreign commerce became very important. Slavery and sugar, related economic activities, were specially important. The Netherlands and Britain led the passage into capitalism and the Industrial Revolution began in Britain. This began with the textile industry with imparted cotton becoming the major raw material. Mining also became important because Britain had important coal reserves. And coal powered the 19th century Industrial Revolution. This resulted in the modernization of existing sectors and the development of whole new factors. Britain became the Workshop of the World. Gradually America and Germany emerged as major competitors. The 20th century would be defined by the challenge of the rise of Socialism and the challenge of the great totalitarian powers. America would dominate this challenge, but Britain would play an important role. And the various sectors of British industry would be involved in this struggle. Here the election of a Labour (Socialist) Government (1945)wioulf have a major impact.

Chronology

The history of the English economy is an especially important subject. Some basic information on the neolkitic era is available througharcheology. Written records are notbavailable intil the Roman conuest. This was followed by the medieval erra and the feudal system. England was part of the feudal system that dominated Western Europe. Ther were , however, dufferences. Both Celtic and German influences (Anglo-Saxon and Vikings) were important. This helped undercut divine right monarch anndvafter the Normann invasin, the Barions would rise up to prevent the rise of royal absolutism in England. This woold evetually play out in the development of democracy and capiyalism. Until the 18th century, it was like other countries, primarily reliant on agriculture. Pastoral profuction of wool was especially important. And as England became a seafaring nation (16th centyry), trading became important as well. Then all of a sudden the industrial revolution took hold which transformed not only England, but eventually the world. A student of both economics and history has to explain why the various social, political, and economic forces came together in England during the 18th century to create the first modern economy. The economy of medieval England was based on the wool trade. Before the 18th century several important elements were in place need for a modern economy. Laws protected private property even from royal excesses. The English appropriated capitalism which the Dutch invented. And social attitutudes a well as laws protected and even promoted free thought, including scientific inquiry which led to practical applications. This combined with the availability of key natural resources (coal and iron) led to the industrial revolution (mid-18th century). The first steps were to develop textile weaving machines. The need for efficent naval construction also helped bring about the industrial revolution. The result was an extrodiarily efficent economy and the creation of great wealth. At about the sane timne, the loss ofthe American colonies (1783) taught the British an important lesson, to allow the colonies to participate in free trade with relatuively few trade limitations compared to the other European empires. The economy allowed England to resist Napoleon and to emnerge after the Napoleon as the preminent world power. The United States followed the English system, only without an empire. The English capitalist economy is often accused of creating poverty. Marx of course wrote Das Kapital in the British Library. This is a major error. English capitalism created wealth. Poverty existed in England before the industrisl revolution. Capitalism fid create greater disparities in wealth because of the wealth it created. Gradually Germany emerged as a major economic competitor with capitalist system developing with greater government direction. After World War II, the governing British Labour Party embarked on an experiment with socialism. Some social inequities were addressed, but Britain fell behind many continental countries. The Thstcher era only partially reversed this course. Britaian today along with many other European countries is facted with Mrs. Thatcher's famous dictum, "Socialism is fine until they run out of other people's money to give away."

Economic Systems

Fiscal Policies

Science

Here the role Britain played in advance of science would be a major factor in Britain's industrial power and its survival in the two wars with Germany. This can be measured with Nobel Prize Awards. Germany dominated the Nobel Prize awards, but Britain was a close second. World War II and the German onslaught against Jews knocked Germany out of its leadership role, but even before this Britain was a close second. After World War II, America dominated in science, but Britain continued to be the secomd most imprtant country. The Soviet Uniion became a scientig=fic powehiuse because of massive Givernmental support, competing with America in the race to the moon. But ultimately the Soviet socialist economy could not support science like America's robust capitalist economy as well as the penchant toward secrecy and supression of personal freedom. Britain could not compete with the superpowers, but in relative terms comparing economic power, Britain hekd its own and made valuable contributiins in many fiels such as the ground breaking discovery of DNA .

Sectors

Throughout history the primary sector for any substantial civilization was agriculture. This began in Sumeria at the dawn of civilization. Agriculture made civilization possible. And this was true for Neolithic Britain as well. Although mining was also of some importance, especially with the advent of the Bronze Age. This was because tin was found on the British Isles. It was the beginning iof the miming sector. Copper was found in multiple areas, however, tin was much rarer. Tin was needed to make bronze and the British Iles had it. As a result, even with primitive maritime technology, ancient merchants found their way to Britain. And this continued throughout the ancient and early medieval eras. During the medieval era, agriculture was the foundation of Feudalism. In Britain's case wool became very important. The modern European economy began in Italy with the Renaissance, but gradually moved north to the Low Countries, here the foundation of the economy became textiles. This did not include England, but England benefited because with its rich pasturage, it was the perfect place to produce wool, the raw material for the textile production in the Low Countries. British monarchs controlled the wool trade and tried to increase actual textile production. Gradually in the early modern era, agriculture continued to be important, but with the economy moving from feudalism to mercantilism, foreign commerce became very important. Slavery and sugar, related economic activities, were specially important. The Netherlands and Britain led the passage into capitalism and the Industrial Revolution began in Britain. This began with the textile industry with imparted cotton becoming the major raw material. Mining also became important because Britain had important coal reserves. And coal powered the 19th century Industrial Revolution. This resulted in the modernization of existing sectors and the development of whole new factors. Britain became the Workshop of the World. Gradually America and Germany emerged as major competitors. The 20th century would be defined by the challenge of the rise of Socialism and the challenge of the great totalitarian powers. America would dominate this challenge, but Britain would play an important role. And the various sectors of British industry would be involved in this struggle. Here the election of a Labour (Socialist) Government would have a major impact (1945).

Child Labor

England as far as we know was the first country to address the problm of child labor. This is understandable as it was in England that the Industrial Revolution began. Child and women workers played a major role in the Industrial Revolution. Charles Dickens had a major role in prmoting the movement to limit child labor. Parlimentary investigations exposed the abuses, but influential English capitalists committed to laiisez faire government claimed that governmental restrictions were an infringement of their rights. Here Dickens and news accounts of abuses gradually swung public opinion to governmental action to protect children. Finally Parliament began limiting child labor, the initial laws were very minor restrictions, but they gradually increased the protections. Today this is generally seen as a moral issue. Much of the support for yhese laws came from organized labor which had a vested interest in reducing comoetuiion for these jobs.

Created: 12:39 AM 3/1/2011
Last updated: 1:33 PM 7/31/2023