The second industrial revolution Flashcards
(31 cards)
When did the First and Second Industrial Revolutions occur?
1st: 1750; 2nd: 1870.
How did the speed of industrialization differ between the two revolutions?
1st: Slow (up to 1850); 2nd: Fast (up to 1913).
What were the key industries in each revolution?
1st: Steam, textiles, iron; 2nd: Electricity, steel, fuel.
What resources powered each revolution?
1st: Coal; 2nd: Oil and natural gas.
What was the US savings rate between 1864–1914?
18–20% of output.
How much foreign investment did the US receive in the late 1880s?
$3 billion total; $1.5 billion from Britain (1870–1895).
How did US steel production change from 1880 to 1900?
A: From 1.1 million to 10.1 million tonnes.
How did oil production change from 1866 to 1896?
From 1 million to 20 million barrels.
What advantages did multinational corporations have?
Better investment targeting, political influence, and risk management.
What was the Sherman Act (1890)?
Anti-trust law that led firms to merge and grow internationally.
How did the Gold Standard (1879) affect trade?
Reduced currency risk, boosting international trade and investment.
What happened during the 1873–1896 recessions?
Prices fell, inefficient firms failed, and workers moved to efficient sectors.
What was the peak period of European migration to the Americas?
Late 19th century (Hatton & Williamson, 2005).
What protectionist policy was introduced in 1870?
Tariffs protecting iron and steel producers.
How did producers support protectionism?
By funding protectionist politicians.
What were key southern industries during the Second IR?
Cotton textiles and tobacco.
How did cotton exports change by 1900?
South exported more to China than New England.
What was the economic status of the South by 1900?
Half the US average per capita income.
How did Britain perform in the mid-Victorian era (1850s–1870s)?
Global leader in manufacturing, trade, and finance.
What happened to Britain’s economy after 1870?
Slower GDP growth, declining trade share, and loss of industrial leadership.
What are potential causes of Britain’s industrial decline?
Overcommitment, capital outflow, banking inefficiencies, poor education, and institutional failures.
What is the overcommitment hypothesis?
Britain over-invested in 1st IR industries and failed to adapt.
How did capital outflow affect Britain?
Reduced domestic investment despite high social returns at home.
Why were British clearing banks inefficient?
Focused on short-term lending and lacked flexibility.
