Economic effects

Undergirding the development of modern Europe between the 1780s and 1849 was an unprecedented economic transformation that embraced the first stages of the great Industrial Revolution and a still more general expansion of commercial activity. Articulate Europeans were initially more impressed by the screaming political news generated by the French Revolution and ensuing Napoleonic Wars, but in retrospect the economic upheaval, which related in any event to political and diplomatic trends, has proved more fundamental.

Major economic change was spurred by western Europe’s tremendous population growth during the late 18th century, extending well into the 19th century itself. Between 1750 and 1800, the populations of major countries increased between 50 and 100 percent, chiefly as a result of the use of new food crops (such as the potato) and a temporary decline in epidemic disease. Population growth of this magnitude compelled change. Peasant and artisanal children found their paths to inheritance blocked by sheer numbers and thus had to seek new forms of paying labour. Families of businessmen and landlords also had to innovate to take care of unexpectedly large surviving broods. These pressures occurred in a society already attuned to market transactions, possessed of an active merchant class, and blessed with considerable capital and access to overseas markets as a result of existing dominance in world trade.

Heightened commercialization showed in a number of areas. Vigorous peasants increased their landholdings, often at the expense of their less fortunate neighbours, who swelled the growing ranks of the near-propertyless. These peasants, in turn, produced food for sale in growing urban markets. Domestic manufacturing soared, as hundreds of thousands of rural producers worked full- or part-time to make thread and cloth, nails and tools under the sponsorship of urban merchants. Craft work in the cities began to shift toward production for distant markets, which encouraged artisan-owners to treat their journeymen less as fellow workers and more as wage labourers. Europe’s social structure changed toward a basic division, both rural and urban, between owners and nonowners. Production expanded, leading by the end of the 18th century to a first wave of consumerism as rural wage earners began to purchase new kinds of commercially produced clothing, while urban middle-class families began to indulge in new tastes, such as uplifting books and educational toys for children.

In this context an outright industrial revolution took shape, led by Britain, which retained leadership in industrialization well past the middle of the 19th century. In 1840, British steam engines were generating 620,000 horsepower out of a European total of 860,000. Nevertheless, though delayed by the chaos of the French Revolution and Napoleonic Wars, many western European nations soon followed suit; thus, by 1860 British steam-generated horsepower made up less than half the European total, with France, Germany, and Belgium gaining ground rapidly. Governments and private entrepreneurs worked hard to imitate British technologies after 1820, by which time an intense industrial revolution was taking shape in many parts of western Europe, particularly in coal-rich regions such as Belgium, northern France, and the Ruhr area of Germany. German pig iron production, a mere 40,000 tons in 1825, soared to 150,000 tons a decade later and reached 250,000 tons by the early 1850s. French coal and iron output doubled in the same span—huge changes in national capacities and the material bases of life.

Technological change soon spilled over from manufacturing into other areas. Increased production heightened demands on the transportation system to move raw materials and finished products. Massive road and canal building programs were one response, but steam engines also were directly applied as a result of inventions in Britain and the United States. Steam shipping plied major waterways soon after 1800 and by the 1840s spread to oceanic transport. Railroad systems, first developed to haul coal from mines, were developed for intercity transport during the 1820s; the first commercial line opened between Liverpool and Manchester in 1830. During the 1830s local rail networks fanned out in most western European countries, and national systems were planned in the following decade, to be completed by about 1870. In communication, the invention of the telegraph allowed faster exchange of news and commercial information than ever before.

New organization of business and labour was intimately linked to the new technologies. Workers in the industrialized sectors laboured in factories rather than in scattered shops or homes. Steam and water power required a concentration of labour close to the power source. Concentration of labour also allowed new discipline and specialization, which increased productivity.

The new machinery was expensive, and businessmen setting up even modest factories had to accumulate substantial capital through partnerships, loans from banks, or joint-stock ventures. While relatively small firms still predominated, and managerial bureaucracies were limited save in a few heavy industrial giants, a tendency toward expansion of the business unit was already noteworthy. Commerce was affected in similar ways, for new forms had to be devised to dispose of growing levels of production. Small shops replaced itinerant peddlers in villages and small towns. In Paris, the department store, introduced in the 1830s, ushered in an age of big business in the trading sector.

Urbanization was a vital result of growing commercialization and new industrial technology. Factory centres such as Manchester grew from villages into cities of hundreds of thousands in a few short decades. The percentage of the total population located in cities expanded steadily, and big cities tended to displace more scattered centres in western Europe’s urban map. Rapid city growth produced new hardships, for housing stock and sanitary facilities could not keep pace, though innovation responded, if slowly. Gas lighting improved street conditions in the better neighbourhoods from the 1830s onward, and sanitary reformers pressed for underground sewage systems at about this time. For the better-off, rapid suburban growth allowed some escape from the worst urban miseries.

Rural life changed less dramatically. A full-scale technological revolution in the countryside occurred only after the 1850s. Nevertheless, factory-made tools spread widely even before this time, as scythes replaced sickles for harvesting, allowing a substantial improvement in productivity. Larger estates, particularly in commercially minded Britain, began to introduce newer equipment, such as seed drills for planting. Crop rotation, involving the use of nitrogen-fixing plants, displaced the age-old practice of leaving some land fallow, while better seeds and livestock and, from the 1830s, chemical fertilizers improved yields as well. Rising agricultural production and market specialization were central to the growth of cities and factories.

The speed of western Europe’s Industrial Revolution should not be exaggerated. By 1850 in Britain, far and away the leader still, only half the total population lived in cities, and there were as many urban craft producers as there were factory hands. Relatively traditional economic sectors, in other words, did not disappear and even expanded in response to new needs for housing construction or food production. Nevertheless, the new economic sectors grew most rapidly, and even other branches displayed important new features as part of the general process of commercialization.

Geographic disparities complicate the picture as well. Belgium and, from the 1840s, many of the German states were well launched on an industrial revolution that brought them steadily closer to British levels. France, poorer in coal, concentrated somewhat more on increasing production in craft sectors, converting furniture making, for example, from an artistic endeavour to standardized output in advance of outright factory forms. Scandinavia and the Netherlands joined the industrial parade seriously only after 1850.

Southern and eastern Europe, while importing a few model factories and setting up some local rail lines, generally operated in a different economic orbit. City growth and technological change were both modest until much later in the 19th century, save in pockets of northern Italy and northern Spain. In eastern areas, western Europe’s industrialization had its greatest impact in encouraging growing conversion to market agriculture, as Russia, Poland, and Hungary responded to grain import needs, particularly in the British Isles. As in eastern Prussia, the temptation was to impose new obligations on peasant serfs labouring on large estates, increasing the work requirements in order to meet export possibilities without fundamental technical change and without challenging the hold of the landlord class.