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How did industrialization change the economy?

Topics  

- Industrialization 

- the process of coming to have radically better production technologies that enable an economy to produce vastly  more manufactured goods

- production of economic wealth in certain places in the world  

- began in England in 1700s 

- J curve vs. S curve  

- J curve  

- total world population was steadily increasing then shot up around 1800 

- total urban population was increasing since around 1700 then shot up around 1900 

- S curve  

What was the cause of the exponential increase in population that occurred after the 1800s?

- % urban is steady until industrialization, increase rapidly for a time, then levels out near 100% urban - Divisions of Labor 

- urbanization in the Global North (1500-1970) 

- Old International Division of Labor (OIDL) Don't forget about the age old question of How is hotspot related to plate tectonics?
We also discuss several other topics like How are complex characteristics generated?

- raw materials from the rural South to the urban North — colonialism 

- why did the OIDL break down? 

- agglomeration economies - 1970s 

- when you have a lot of industry in one place, costs rise — wages, land regulations, etc Don't forget about the age old question of What comorbidities are associated with obesity?

- costs were lower in the Sunbelt of the US 

Why is there a new international division of labor?

- de-urbanization of the northeastern US, urbanization of the southern US 

- ex/ Detroit becoming less industrialized, northern border of Mexico is becoming industrialized  - industrialization jumps around to wherever is cheaper  

- urbanization follows  

- rapid industrialization —> rapid de-industrialization 

- urbanization in the Global South (1970-now) Don't forget about the age old question of What is value in the sense of art?

- New International Division of Labor (NIDL) 

- industrial manufacturing shifts to the urban South  

- Origins of Cities 

- agricultural surplus 

- agricultural revolution —> surplus —> division of labor —> cities 

- shift from hunters/gatherers to agriculturalists —> surplus —> specialization —> reliance on countryside for food  - divisions of labor  

- no division — everyone does everything for themselves, people are spread out  

- full division — each person does one specific task, people live closer together  

- city-state = non-agricultural city surrounded by rural agricultural (hinterlands) Don't forget about the age old question of What field allows us to use a limited sample to make intelligent and accurate statements about a population?

- technologies invented to keep track of the surplus  

- writing, math, meteorology, astronomy, agricultural improvements, hydrology  

- trade between cities  

- trading cities  

- surplus —> division of labor —> cities —> agricultural revolution  

- surplus of valuable resource to trade — not agricultural  

- you need development in cities to invent agriculture 

- cities gather up human potential — human potential increases 

- increasing technology leads to trade which increases specialization which further increases trade  - equal city-states engage in mutually beneficial trade

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- Greece and Rome 

- Greece (~750-300 BC) 

- trading system between Greek city-states and other Mediterranean outposts 

- system of cities on the coast line 

- Rome (~200 CE) 

- military relationship — everywhere they conquered, they urbanized If you want to learn more check out Which is the best definition of sovereignty?

- Roman metropolis — 1 million people 

- city plans 

- gridded, walled, efficient — military technology 

- controlled the surrounding countryside  

- ultimate urban empire  

- Medieval de-urbanization (~400-1300 CE) 

- after the fall of the Roman Empire (~400 CE), towns don’t have a purpose anymore 

- de-urbanization — ~400-500 CE 

- ruralization of the population around large villas organized around feudal estates 

- feudal estates 

- focused economic production in rural areas 

- self-sufficient — agricultural goods produced there was consumed there  

- peasants/serfs were bound to the village  

- feudal market town 

- some surplus is traded with other estates — small operations  

- Commercial cities (~1300-1750 CE) 

- larger towns/cities (Paris, Milan, London, Venice, Prague) pop up on the coasts, near rivers - trade is the main economic activity  

- cities became places where rural peasants could escape to 

- emerged through trade 

- bought things cheap, sold them for profit 

- ex/ Italy traded with China, the Middle East 

- cities in the North had agricultural goods in bulk  

- pre-industrial manufacturing  

- production from raw materials for profit  

- small-scale, in house by hand 

- minimal technology  

- workers and merchants all lived in one house — vertical social stratification  

- feudalism —> capitalism  

- rural agriculture —> urban trading 

- surplus as insurance —> surplus as productive force 

- surplus if it comes up —> surplus as the whole point 

- feudal lords —> merchants, bourgeoisie  

- Industrial cities—> urbanization (~1750-now) 

- Industrial Revolution — 1760-80 in England  

- new manufacturing technologies —fossil fuels 

- coal, steam engine, machines, metal, factories  

- How? 

- sources of investment 

- surplus from commercial cities — investing in machinery to increase productivity  

- surplus from colonial extraction — slave trade/raw materials = wealth

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- sources of cheap raw materials  

- coal and iron ore — industrialization started near coal fields  

- colonial extraction — cheap raw materials from the colonies  

- sources of cheap labor  

- rural Britain 

- Enclosure Movement — privatizing rural common lands — rural people move to urban factories  - textile technology — commercial —> industrial  

- shift from single-person looms to steam-powered looms in factories  

- mass production 

- huge factories needed lots of workers 

- rural workers move to urban factories — women and children were cheaper  

- spread of industry  

- doesn’t necessarily spread to already commercial cities  

- spreads to places where industrialization is possible first  

- based on proximity to materials, transportation, etc 

- urban form — factories, slums, segregation  

- the factory is the focal point of the city  

- workers live around the factory in slums  

- extremely dense, problems with sanitation, disease, etc  

- industrialization happened so fast, slums were unplanned  

- multiple families lived in one building — whole families in single rooms 

- Suburbanization (mid-20th century- now) 

- in commercial cities, workers and merchants all lived together in the city 

- in industrial cities, the upper classes (bourgeoisie) began to leave the city 

- the further out you moved from the city, the more transportation you would need to get to the city  - sprawl 

- US cities are exemplars of suburbanization 

- spike in sprawl after WWI, WWII, 1970 

- by 2000, 51% of the US population lived in suburbs  

- automobile production — 1940s-80s 

- assembly line —> mass production 

- increasing supply, decreasing price  

- starfish pattern 

- streetcar tracks radiate from the city center 

- zones of development around the tracks 

- ‘hub-and-spoke’ layout of interstate highways surrounding the residential areas 

- what causes it? 

- economic stimulus 

- Depression —> unemployment, homelessness 

- 1934 Housing Act (FHA) 

- stimulate house lending, buying, building 

- federal government insured mortgages, lended to more people  

- building new houses on the outskirts of cities  

- mass production of housing — developers 

- the government pushed for more and more housing starts 

- happened in the outskirts of cities where there was cheap and open land 

- developers built 30 houses a day

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- infrastructure — government 

- needed roads to get from the suburbs to the city 

- electrical/water systems, sewers 

- demand for homeownership shows status, upward mobility 

- suburban way of life is the antithesis of the industrial city  

- who? 

- white middle class — able to pay off loans 

- white flight — after a certain percentage of the neighborhood becomes non-white, white people move  elsewhere, pushing the suburbanized white population further away from the city center

- commercial areas followed suit later — 1970s-80s — strip malls 

- industry followed later because of better infrastructure  

- External Economies 

- external savings/benefits 

- things happening outside beyond your control that still impact you 

- ex/ city lowers taxes, firm pays less 

- agglomerations  

- when businesses cluster together leading to good economies or bad economies  

- Agglomeration Economies — PULL BUSINESSES IN 

- initial advantage of the city — port, access to raw materials, good reputation, etc 

- positive feedback loop — cumulative causation 

- initial investment 

- other firms are then attracted to that city  

- companies can keep an eye on each other, manufacturers want to be close to their suppliers  - leads to new investment 

- skilled labor is attracted to the city by the available work 

- more companies are attracted by the available labor 

- housing, retail, tax bases are boosted by newcomers 

- leads to new investment in housing, retail, restaurants, etc 

- increasing tax base is used to improve infrastructure  

- leads to more new investment 

- agglomeration economies in city A create ‘take-off’ 

- positive feedback makes city A richer 

- capital, labor, and taxes are sucked out of city B into city A — Backwash Effects — makes city B poorer - Agglomeration Diseconomies — PUSH BUSINESSES AWAY 

- investment agglomeration —> increased demand for land, labor, infrastructure  

- land — rents go up, costs of doing business go up 

- labor — wages go up 

- overburdened infrastructure — need higher taxes to support new infrastructure  

- leads to disinvestment, no new investment  

- shift from the Rust Belt to the Sun Belt 

- industry left places like Detroit, Pittsburgh because wages, taxes, and regulations increased - industry shifted to places in the southern US and northern Mexico where wages, taxes, and regulations were  lower

- investment is leaving cities in the Global North and shifting to the Global South

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- Global shift from OIDL to NIDL 

- Global North = still rich and urban, but de-industrializing  

- Global South = still poor, but some places are industrializing, and therefore urbanizing  

- Mexico, Brazil, South Africa, Turkey, India, China, Thailand, Philippines, Indonesia  

- very chaotic — investment comes for a few years then leaves for cheaper places  

- Effects of de-industrialization in the Global North  

- devastation 

- cities that don’t come back as a new city/economy 

- ex/ Detroit; Youngstown, Ohio 

- adaptation 

- cities that still have some industrial investment, but also find new economic activities  

- post-industrial cities — Seattle, NY, LA, Chicago  

- Dual Cities  

- shift of social structure in cities — bigger differentiation between rich and poor  

- before the shift, the middle income bracket had the most people 

- high wage manufacturing jobs  

- white and black, males, unionized, good benefits — cars, steel, oil 

- after the shift, the middle income bracket declined and most people were either too poor or too rich - low wage service jobs  

- non-white, male and female, non-unionized, few benefits — retail, cleaning, delivery, restaurant - high wage service jobs 

- white, male, good benefits — law, accounting, medicine, insurance, banking — need education - low wage manufacturing  

- non-white, male and female, non-unionized, few benefits — textile, processed food, electronics  - polarized, rich vs. poor 

- inequality, fear 

- new union movements in low wage sectors 

- janitors, hotel-restaurant workers 

- has had some impact on raising wages, tighter regulations

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Readings

- Mumford 

- draws on Aristotle  

- “Anyone who can not form a community with others… is no part of a polis — he is either a beast or a god” - humans are city creatures — cities are places where you become a good human being  

- we should engage each other in a cooperative friendly relationship in the city  

- rational dialogue on justice — what is a good city? 

- by doing this we will reach our purpose as human beings 

- logos (dialogue) —> dike (justice) —> eudaemonia (happiness) 

- when you’re around others, you become civilized  

- urbanitas = urbane = cultured/refined/civilized = civitas = citizen = city 

- adds drama to Aristotle  

- social facts are primary — physical organization of the city is subservient to social needs 

- cities are planned for effective social intercourse  

- face to face interaction; frequent, direct meeting 

- the economy is not the point of the city  

- social intercourse — dialogue on what the good city should be 

- size, density, area limitations  

- deliberate localization 

- cities need to be small enough for effective social intercourse 

- Wirth 

- city life is superficial, impersonal, competitive, diverse, tolerant, sophisticated, etc 

- shallow relationships —> not much emotional importance  

- properties of the city  

- large population  

- leads to diversity of roles, segregation of land uses/people 

- dense 

- diverse people close together leads to competition, mutual exploitation 

- heterogeneous 

- people are part of several different groups but don’t have deep connections to them 

- emergence of the average  

- tendency toward the average  

- organizations do things in a way that works for the greatest amount of people  

- flattening of individuality  

- the individual becomes secular, fractured — interpersonal bonds are thin 

- Davis 

- urban (city) growth — the number of people who live in cities is growing  

- urbanization 

- a rise in the proportion of the total population of some area concentrated in urban settlements  - causes 

- natural increase in cities 

- rural places become urban 

- rural-to-urban migration  

- urbanization can end while cities keep growing  

- urban growth in the global south is increasing dramatically  

- we’re becoming an urban species, forcing people into increasingly large cities (megacities) - we are becoming like insects

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- Childe 

- agricultural surplus theory 

- surpluses in early cities allowed skilled non-agriculturalists to specialize in other trades and crafts - different technologies were invented to keep track of the surplus — math, writing, meteorology, hydrology - specialists in the cities relied on agriculturalists in the hinterlands for food  

- city-states started to trade with one another  

- Engels 

- industrialization leads to segregation 

- Manchester in the mid-19th century  

- in commercial cities, merchants and workers would all live in the city 

- with industrialization, thousands of people moved from rural areas to the city 

- in industrial cities, workers lived near the factory in slums while the bourgeoisie lived outside the city  - slums were extremely dense and had horrible problems with sanitation and disease  

- critical of capitalism  

- large size and density lead to individualism, self-interest, competition, segregation, prioritization of the economic  aspect of the city  

- Knox 

- suburbanization  

- spike in sprawl after WWI, WWII, and 1970 

- decreasing overall density, especially in the city center — people moved further and further out - why? 

- rise of the automobile industry, transportation 

- mass production, increasing supply, decreasing price  

- new and better roads  

- post-WWII baby boom — ideal of the American family —> homeownership  

- post-WWII GI Bill, government encouragement to buy homes 

- mass production of housing 

- zoning laws — developers were able to sort out whole parts of the city for housing 

- starfish pattern  

- streetcar tracks radiate from the city center 

- housing is clustered around the streetcar tracks 

- new highways run from the residential areas out of the city — ‘hub-and-spoke’ layout of interstate highways - retail and commercial followed residential suburbanization, then industrial due to improved infrastructure  - Archer 

- agglomeration economies  

- initial investment in a particular place leads to new investment 

- new labor is attracted by the available work 

- new investment is attracted by the available labor 

- housing, retail, tax bases increased by newcomers  

- leads to new residential, retail, commercial, infrastructure investment 

- positive feedback loops 

- agglomeration diseconomies  

- investment agglomeration —> increased demand for land, labor, infrastructure —> disinvestment - land — rents go up, costs of doing business go up 

- labor — wages go up 

- overburdened infrastructure — need higher taxes to support new infrastructure