6.3 - Second Wave Industrialization & Its Effects
Key facts and dates
The second wave of industrialization, occurring roughly from 1870 to 1914, built on earlier advances and spread more widely across Europe, leading to profound economic, social, and political transformations. This period featured new technologies, integrated economies, and shifts in daily life, though it also introduced challenges like business cycles.
Key facts to remember:
- c. 1870–1914 – Second industrial revolution expands with mechanization, factories, and new technologies like the Bessemer process and electricity.
- Mechanization and factories – Predominant production modes by 1914, exemplified by Manchester, England, and the Krupp family in Essen, Germany.
- Integrated economies – Railroads and steamships create national and global networks, increasing urbanization.
- Business cycles – Volatile markets lead to monopolies, tariffs, and banking practices to manage economies.
- Social impacts – Better agriculture and industrialization boost population growth, life expectancy, and consumerism through mass marketing.
- Prussian leadership – Zollverein customs union and government-sponsored manufacturing unify and industrialize Germany.
- New industries – Innovations in chemicals, automobiles, and leisure travel enhance quality of life.
Defining the second industrial revolution
The second industrial revolution, spanning approximately 1870 to 1914, marked a period of accelerated technological and industrial progress in Europe. Building on the first wave, this era saw mechanization (the use of machines to perform tasks previously done by hand) and the factory system (organized production in large facilities with division of labor) become the dominant modes of production by 1914. This shift increased the scale and complexity of industrial processes, spreading to more regions of Europe and creating interconnected global systems.
As a result, economies became more integrated, with higher urbanization (the growth of cities as people moved for work) and the emergence of a truly global economic network. These changes stemmed from innovations that improved efficiency but also led to unintended consequences like economic volatility.
Key technological innovations
Technological advances during this period revolutionized production and daily life, focusing on new materials, energy sources, and manufacturing methods. These innovations increased efficiency (the ability to produce more with less effort) and shaped human interactions, often with both positive and negative effects.
Major new technologies:
- Bessemer process - A method for mass-producing steel by blowing air through molten iron to remove impurities, making steel cheaper and stronger for construction and machinery.
- Mass production - Techniques for producing large quantities of goods quickly, often using assembly lines, which lowered costs and made products more accessible.
- Electricity - Harnessed as a power source for factories, homes, and cities, enabling longer work hours and new appliances that improved daily life.
- Chemicals - Developments in synthetic dyes, fertilizers, and pharmaceuticals created new industries and enhanced agriculture by increasing crop yields.
These technologies built on each other, leading to greater industrial activity and setting the stage for economic expansion.
Economic developments and global impacts
The second industrial revolution influenced economic structures by creating more dynamic markets and addressing challenges like business cycles (periodic fluctuations in economic activity, including booms and recessions). Governments and corporations responded with strategies to stabilize growth, while new communication and transportation methods integrated economies on a national and global scale.
Responses to economic volatility:
- Monopolies - Large companies dominated markets to control prices and reduce competition, often leading to greater efficiency but also limiting consumer choices.
- Banking practices - Financial institutions provided loans and investments to support industrial expansion, helping manage risks during downturns.
- Tariffs - Protective taxes on imported goods encouraged domestic production, shielding local industries from foreign competition.
Innovations in communication and transportation
Innovations in these areas connected markets and people, fostering a global economic network.
| Category | Examples | Economic Impacts |
|---|---|---|
| Communication | Telegraph (device for sending messages via electrical signals over wires); Telephones (devices for voice communication over distances); Radio (wireless transmission of signals for broadcasting) | Faster business dealings, better coordination of trade, and quicker spread of information across continents. |
| Transportation | Steamships (ships powered by steam engines for ocean travel); Streetcars or trolley cars (electric-powered urban vehicles on tracks); Internal combustion engine (engine burning fuel inside cylinders, powering cars); Airplanes (flying machines for air travel) | Reduced shipping times, lowered costs for goods distribution, increased urbanization, and expanded global trade networks. |
These developments resulted in more fully integrated national economies, where regions specialized in certain goods and relied on efficient transport for exchange.
Social changes and consumerism
Industrialization brought significant social transformations, including population growth and a rise in consumerism (the increased desire and ability to purchase goods). Better agricultural practices, combined with industrial advances, improved living standards but also created new social dynamics.
Factors driving population changes
The commercialization of agriculture (the shift to market-oriented farming), aided by chemical fertilizers and mechanized tools, led to better harvests. This resulted in population growth, longer life expectancy (average years a person is expected to live), and lowered infant mortality (death rates of babies under one year). As a result, more people moved to cities for factory jobs, accelerating urbanization.
Rise of heightened consumerism
The second industrial revolution fueled demand for new goods through mass marketing (strategies to promote products to large audiences) and increased production.
New consumer goods and marketing techniques:
- New consumer goods - Items like ready-made clothing, processed foods (pre-packaged edibles like canned goods), and labor-saving devices (machines like washing machines to reduce household work) became widely available.
- Mass marketing techniques - Advertising (promotional messages in newspapers or billboards), department stores (large retail spaces offering varied products), and catalogs (mail-order books listing goods) stimulated demand.
- Leisure opportunities - With more free time from efficient work processes, people engaged in activities like professional sports and leisure travel, enhancing quality of life.
These changes created a cycle where increased production met growing demand, transforming social habits.
Political influences and industrialization in Prussia
Industrialization also shaped political development, particularly in how states like Prussia used it to build power and unify regions. Government sponsorship (official support and funding) played a key role in rapid industrial growth, influencing broader European politics from 1815 to 1914.
Industrialization in Prussia
Prussia's strategic approach allowed it to lead the unification of Germany in 1871, creating a powerful industrialized state.
Key strategies:
- Zollverein - A customs union that eliminated trade barriers among German states, promoting economic integration and free internal trade.
- Investment in transportation network - Building railroads and canals to connect regions, facilitating the movement of goods and people.
- Adoption of improved methods of manufacturing - Implementing advanced factory systems and technologies to boost production efficiency.
- Friedrich List's National System - An economic theory advocating protectionism (policies to shield domestic industries) and state intervention to foster national development.
This government-led model led to rapid industrialization, strengthening Prussia politically and enabling it to dominate a unified Germany.
Innovations enhancing daily life and new industries
New methods of transportation and other innovations not only improved efficiency but also created entirely new industries, distributing goods better and elevating quality of life. These changes had intended benefits like convenience, alongside unintended ones such as environmental strain.
Efficient transportation methods:
- Steamships - Improved ocean travel for faster global trade.
- Railroads - Expanded land transport, including refrigerated rail cars (cooled cars for perishable goods) to preserve food during shipment.
- Other innovations - Ice boxes (early refrigerators for home use), streetcars (urban transit), and bicycles (two-wheeled personal vehicles) made daily movement easier.
Emerging new industries:
- Chemical industry - Produced dyes, medicines, and materials, supporting textiles and health.
- Electricity and utilities - Provided power to homes and businesses, enabling widespread electrification.
- Automobile - Created manufacturing and transport jobs, revolutionizing personal mobility.
- Leisure travel - Industries around tourism and vacations grew with better transport.
- Professional and leisure sports - Organized athletics became popular, boosting entertainment and health.
Together, these elements connected historical processes, showing how technological innovation drove economic integration, social shifts, and political power during this era.