• "Since the beginning of time"--too far from the topic assigned
  
• "These events have led us to where we are today."--this could be said about almost anything, it doesn't contribute to the points you want to make

More on transportation:

first stage of industrial revolution had been based on textile factories, second stage--key driver was the railroad

• economic pattern--larger scale investment in more industries
• not just the rich but also the middle class invested in railroads
  
• railroads raised the funding they needed by selling stock (setting themselves up as limited liability corporations)
• beginnings of big corporations dominating industries, able to invest more money in new technology
• broader industrial base--capital industries which produce goods for other industries, not for consumers
• machines for factories, railroad locomotives, mass production of iron
• more and more kinds of goods were being made in factories
• factories were being built to make equipment for other factories

Railroad:

• Rails are a much earlier innovation than locomotives: horsedrawn carts on wooden rails used in Germany since 16th century, in England since 17th century.  Iron rails about 1770.  Mostly used in mine but by the end of 1825 there were 300-400 miles of iron public railroad
• the idea of a moving steam engine was obvious, but there were problems.
• you can use a stationary steam engine to wind a cable to pull a load
• need for high pressure steam engines
• widespread belief that there would not be enough friction, that rise would have to be less than 1 foot per 100
• experiments with steam carriages--eg. Cugnot in France in 1770--had led to English laws to keep steam carriages from scaring horses by requiring a man walking in front of it with a flag or lantern
• early experiments on coal mine (colliery) railways
•  Penydarren colliery locomotive
• First experimental locomotive built by Richard Trevithick in 1803-4 for the 10 mile Penydarren colliery railway.  One cylinder, 8 1/2 inches in diamter, 4 1/2 foot stroke, probably 30-50 lb/sq in. working pressure.  It was too heavy for the track so the owners used it as a stationary engine.
• Trevithick tried again in 1805 with no more success, went to South American in disgust
• by 1812 similar locomotives started to be used on colliery railroads (in the north of England--Leeds and on Tyneside) between mine and warf. They were useful to haul goods from the mine to the nearest water transportation Economical because Napoleonic wars increased price of animal feed.
• 1825 Stockton and Darlington Railroad was first common carrier to use locomotives, though the main need for the line was to haul coal from a mine to the coast. 
• Builders of Liverpool-Manchester railroad were locked in a debate over whether to use horses or locomotives.  Decided to sponsor a contest to see if locomotives were practical at all and pick the best design. Rainhill Trials (video of recreation)
•  held Oct. 1829.  Contest was to pull 20 tons at 10 mph and make 40 trips over a 1 1/2 mile course.
• 10 entries were expected but only three appeared--Timothy Hackworth, engineer of the Stockton and Darlington RR entered the Sans Pareil, John Braithwaite and John Ericsson entered the Novelty (which had the advantage of being a particularly light weight design), and Robert Stephenson entered the Rocket (animation).
• Sans Pareil failed to complete the course, Novelty also broke down, but Rocket not only completed the course but averaged 15 mph, winning the 500 pound prize
• More important this convinced people of the practicality of locomotives.  It was a major spectator sport--more than 10,000 people saw the trials
• Liverpool-Manchester builders ordered seven locomotives.  They built their rails to the gauge of Stephenson's locomotive--the 4 ft. 8 1/2 inch gauge of the Killingworth Colliery Wagonway.  That is still the standard gauge today.
• Funded by merchants who wanted lower priced transportation than the existing canal, which had a monopoly.  This line competed for the first time with canals, since it connected an industrial center with its port.  Canal interests tried to block its building in Parliament.  Speed was the key advantage--unexpectedly 1/2 of revenue came from passengers.
• railroad spread rapidly after that--between 1830 and 1850 6,000 miles of railroad were built in England
  
• railways were built far beyond any economic need, but they trained a generation of engineers.  In 1847 more than 1/4 million men were employed in constructing 6,455 miles of railways, with a total expenditure on railways about 10% of national income.
• where did the money come from for so much to be invested in building railroads?
• it came from investors--more people invested, not just rich people (Railway Mania)
  
• limited liability corporation--if the company goes broke you lose only what you invested, you aren't responsible to the creditors beyond that
• first general limited liability law New York state, 1811
• a similar law was passed in Britain in 1854
• some railroads were very profitable but many were not--over-enthusiasm for new technology when the market wasn't there yet
• railroads were where people began to believe that technology was making a new world

• initially England could make products in factories and ship them around the world and still have them be cheaper than locally made products in countries that did not have factories
• but other countries sought to copy the success of England
• the railroad was key to making this possible in larger countries
  

Western Europe and the US succeeded in competing by building factories. We will cover the US on Wednesday.

Europe:

• at first capital to build factories was more expensive than labor so industrialization was slow to catch on
  
• after Napoleon's defeat in 1815 poor people got more rights and wages went up
• that meant that factory machines were profitable (and they were also becoming more efficient)
• but how to compete with England? 
• Tariffs to make imported goods more expensive so local industry could grow (standard model)
• develop a strong national market made possible by railroad systems for cheap transportation
  
• strong banking system to provide capital
  
• universal education--more education gave Germany an advantage in science-based industry
• note Germany was unified in 1871 so statistics before that are tricky

• Germany was first to develop PhD degrees where students learned to do research
• some of you learned about William Perkin (whose name is on Sirrine): an English chemist who accidentally developed the first synthetic dye while trying to synthesize quinine
• this led to research based on coal tar--coal is heated to make available a mix of organic compounds that can be used as raw material for chemical engineering
  
• German chemist August von Hofmann (PhD under Liebig in Giessen in 1841) was hired to a job as a professor in England to strengthen practical chemistry education there
• then returned to a professorship in Germany where he had many PhD students because he wanted to understand the chemistry rather than find new dyes by trial and error
• Germany came to dominate the synthetic dye industry
  
• more than 12,000 organic colorants were introduced in the next 75 years

• India and China de-industrialized
• cheap labor was still a big advantage in agriculture so India and China and Africa shifted to more agricultural economies--this was not traditional but instead the result of globalization and the industrial revolution

II. Twentieth Century

• Japan was forced by imperial powers around it to keep tariffs low, but the national government compensated by investing in and subsidizing selected industries
• developing countries attracted industries that benefited from low wages, and therefore had little incentive for technological improvement that would boost productivity. Low productivity meant they stayed poor
  
• domestic markets were not large enough for economies of scale, Japan was successful because they could depend on access to the US market
• China is now succeeding by combining centrally planned investment with a relatively free market

Now the US and Britain cannot compete in manufacturing against cheap goods from developing countries

• capital now moves easily around the world so labor costs are what varies from place to place
  
• US and Britain have shifted substantially from manufacturing to service industries

What are the effects of de-industrializing on the US?

industrialization is the development of mass production

• make lots of identical goods cheaply
• we are usually more focused on buying what is cheap rather than quality
• principle is that having more things means you are richer, have a better life
  

mass production of cheap products has led us in the direction of environment harm

• what is quality of life?
• bigger house, bigger cars, more things
• could a high standard of living be having fewer beautiful quality things instead of more cheap things
• how much is individual/family and how much is community/natural environment

instead of a focus on cheap mass produced goods
could we change our values in ways that would produce less trash and use less energy?