Sarah King
Dr. Hardy
Technology & Nature in the West Midterm: Part 1 #2
18 October, 2015
Discuss the characteristics of extensive, Smithian, and Schumpeterian growth and explain their importance for understanding the essential features of Europe’s industrialization. These three theories of economic growth all mirror features of European industrialization, the second phase of capitalism. The theories discusses how specialization, rapid economic gains and losses and increased output of products all culminate in an age of industrialization in Europe where the continent experiences rapid urbanization and commercialization that catapulted the region into modernity, but in the process started a capitalist economic system that survived off constant consumer consumption, a system will eventually deplete our resources. The Smithian economic theory that discusses how industrialization brings on increased specialization of products and jobs in the economy. Through this specialization markets become globalized and interconnected with one region specializing in one product trading with another region for another product. Specialization is a feature of …show more content…
This theory suggests that for a capitalist industrial market to ultimately grow and create wealth there will be economic fluctuations along the way, as well as job losses, companies dissolving in order to create new companies, new jobs, and new products. During industrialization in Western Europe the economy became much less predictable. People such as rural farmers and craftsmen began losing their traditional jobs because of the development of new industries such as factories. The ending of old industries and the movement towards urbanization indicated that ultimately wealth was being produced and things were being done more efficiently. Therefore, true European factories made a lot of
Dr. Hardy
Technology & Nature in the West Midterm: Part 1 #2
18 October, 2015
Discuss the characteristics of extensive, Smithian, and Schumpeterian growth and explain their importance for understanding the essential features of Europe’s industrialization. These three theories of economic growth all mirror features of European industrialization, the second phase of capitalism. The theories discusses how specialization, rapid economic gains and losses and increased output of products all culminate in an age of industrialization in Europe where the continent experiences rapid urbanization and commercialization that catapulted the region into modernity, but in the process started a capitalist economic system that survived off constant consumer consumption, a system will eventually deplete our resources. The Smithian economic theory that discusses how industrialization brings on increased specialization of products and jobs in the economy. Through this specialization markets become globalized and interconnected with one region specializing in one product trading with another region for another product. Specialization is a feature of …show more content…
This theory suggests that for a capitalist industrial market to ultimately grow and create wealth there will be economic fluctuations along the way, as well as job losses, companies dissolving in order to create new companies, new jobs, and new products. During industrialization in Western Europe the economy became much less predictable. People such as rural farmers and craftsmen began losing their traditional jobs because of the development of new industries such as factories. The ending of old industries and the movement towards urbanization indicated that ultimately wealth was being produced and things were being done more efficiently. Therefore, true European factories made a lot of