Title: What Type of Economic System Did the Industrial Revolution Develop? | The Classroom
Headings: What Type of Economic System Did the Industrial Revolution Develop?
What Type of Economic System Did the Industrial Revolution Develop?
Tip
How Capitalism Works
Who Are the Capitalists?
Values of Capitalism
Social Effects

Content: aristocratic environments, merchant families and even land owners, creating a class of their own. Issues of descent and origin played no role, as anyone who had sufficient initial capital and an investment plan could try their luck in the capitalist market. Values of Capitalism
As political economist Adam Smith expressed in his work "The Wealth of Nations," capitalism is the "obvious and simple system of natural liberty." In theory, workers in capitalism are nobody's subject and have the freedom to work or not, while employment is seen as a form of transaction: money in exchange for productivity. In addition, people are free to seek profit and accumulate wealth with no limits. Competition in the capitalist market is another value based on natural liberties, even if success means the economic eradication of the other. Social Effects
Land workers from rural areas moved to settlements around large factories, aiming to benefit from a regular job and the better wages of industrial jobs. However, working conditions at the eve of the Industrial Revolution were a far cry from today's decent wages in a 40-hour week and large numbers of full-time (seven days a week) workers had to squeeze into urban slums. Housing conditions in these unprecedentedly densely populated areas, such as the East End of London, did not improve until the early 20th century.