- The Bank of England was established in 1694
- Centralized the economy
- Created a standard currency
- Allowed people to save and invest in industry
- Human capital allowed for cheap labor and more workers for factories
- Parliament promoted invention and innovation for everyone
- They let laissez-faire run the economy, which allowed for industry to expand
- Refused the exportation of any kind of machinery so that Britain could control and monitor the Industrial Revolution
- Promoted growth of railroads throughout the country and as a result the speed of transportation significantly increased
- As wages went up the amount of people went up so wages weren't substantial
- The middle class/factory owners/upper class saw large leaps in their income
- This lead to people having more money overall that people could spend for leisure activities
- People still worked long hours but because of better transportation and urbanization caused by The Industrial Revolution allowed people to live close
- After work hours the workers would go out and enjoy themselves
- The Industrial Revolution caused global markets to emerge which increased people's overall income making it possible for entertainment directed towards consumers also creating a consumer economy
Britain's economy was highly isolated due to (1) the constant state of war and (2) massive tariff walls that protected British industry. In fact, Britain had the highest tariffs in Europe, growing from roughly 30% in the late 1700s to 57% in the early 1820s.
An example of this is the French boycott of English goods during Napoleon. Britain was able to remain mainly self sufficient.
Economic nationalism is a term used to describe policies which are guided by the idea of protesting domestic consumption, labor and capital formation, even if this requires the imposition of tariffs and other restrictions on the movement of labor, goods and capital.
Iron Law of wages is a proposed law of economics that asserts that real wages always tend, in the long run, toward the minimum wage necessary to sustain the life of the worker. The theory was first named by Ferdinand Lassalle in the mid-nineteenth century.
During the Industrial Revolution, the role of government was to keep the peace (or fight wars), maintain civil order and enforce law. By the progressive era, government in addition accepted some responsibility for regulating the economy and caring for the needy.