There is a number of significant milestones in the history of human mankind which completely changed the people´s lives. Either we think about the Fall of Rome, the discovery of America or the French Revolution, all of these turning points left a valuable trace for future generations. However, none had such extensive impact on future world development as the Industrial Revolution which is a synonym for modern economic growth. Industrialisation powerfully stimulated the flow of capital, free economy and trade were on its increase. There is a variety of reasons which allowed Britain to start the long path of transformation from a traditional and mainly rural to an industrial society during the 18th and 19th centuries. The main aim of this essay
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The majority of British population viewed agriculture as their main source of living. British agriculture offered a plentiful production, and that is why it was seen as a very profitable and active. Much of the British land was not dramatically influenced by the fighting in French Revolution and in Napoleonic wars. The fertile soil was therefore suitable for agricultural purposes. Wealthy landowners enlarged their lands by buying new arable soil from the village farmers. A larger proportion of land also called enclosures, allowed them to try new and more efficient production methods of seeding, stock breeding, and harvesting. This shift in agriculture accelerated an important growth in production of food. The success of British agricultural revolution is related to climate conditions as well. Britain together with Ireland, Low Countries, and Denmark took its advantage from a favourable climate. These countries are located “entirely in a temperate, fully humid climate, in which temperature extremes were uncommon and rainfall was plentiful throughout the year”. Appropriate climate and wealth hidden in arable and fertile lands played an important role. The agricultural revolution thus led to a considerable surplus of food production. Britain could feed more people at lower prices allowing them to save the money …show more content…
Capital formation was possible mainly thanks to a low value of interest rates and profit inflation. As the population grew gradually, also the demand was increasing steadily which was mirrored in the economic sector. The growing demand of people resulted in increasing returns. Britain had a unique wage and price structure. The wages were unusually high when compared to wages in other parts of Europe. On the other hand, the prices of energy and capital stayed at an extremely low level. Britain had a capital available for the investment in industrial machines and factories. Another advantage of Great Britain was a system of effective financial and banking institutions. People were used to working with paper instruments to promote the capital transactions. The British government also tried to help the industrialisation by passing laws promoting the investment in businesses. The laws protected the private property and gave a freedom to entrepreneurs who were willing to take risks in order to make a profit and make financial rewards later. They pursued the collective goals facing the exploitation of markets and thus they combined the forces of demand and supply together. During the 18th century, the capitalist concept of Laissez-faire gained its popularity meaning that the entrepreneurs were free from the
The majority of British population viewed agriculture as their main source of living. British agriculture offered a plentiful production, and that is why it was seen as a very profitable and active. Much of the British land was not dramatically influenced by the fighting in French Revolution and in Napoleonic wars. The fertile soil was therefore suitable for agricultural purposes. Wealthy landowners enlarged their lands by buying new arable soil from the village farmers. A larger proportion of land also called enclosures, allowed them to try new and more efficient production methods of seeding, stock breeding, and harvesting. This shift in agriculture accelerated an important growth in production of food. The success of British agricultural revolution is related to climate conditions as well. Britain together with Ireland, Low Countries, and Denmark took its advantage from a favourable climate. These countries are located “entirely in a temperate, fully humid climate, in which temperature extremes were uncommon and rainfall was plentiful throughout the year”. Appropriate climate and wealth hidden in arable and fertile lands played an important role. The agricultural revolution thus led to a considerable surplus of food production. Britain could feed more people at lower prices allowing them to save the money …show more content…
Capital formation was possible mainly thanks to a low value of interest rates and profit inflation. As the population grew gradually, also the demand was increasing steadily which was mirrored in the economic sector. The growing demand of people resulted in increasing returns. Britain had a unique wage and price structure. The wages were unusually high when compared to wages in other parts of Europe. On the other hand, the prices of energy and capital stayed at an extremely low level. Britain had a capital available for the investment in industrial machines and factories. Another advantage of Great Britain was a system of effective financial and banking institutions. People were used to working with paper instruments to promote the capital transactions. The British government also tried to help the industrialisation by passing laws promoting the investment in businesses. The laws protected the private property and gave a freedom to entrepreneurs who were willing to take risks in order to make a profit and make financial rewards later. They pursued the collective goals facing the exploitation of markets and thus they combined the forces of demand and supply together. During the 18th century, the capitalist concept of Laissez-faire gained its popularity meaning that the entrepreneurs were free from the