University of Michigan - Ann Arbor

There were a number of changes in the production of goods that resulted from the Industrial Revolution. These changes are summarized in this diagram. 

Economic Changes Resulting from the Industrial Revolution

The Malthusian cycle was not permanent. The rapid technological advancements and the increasing reliance on non-renewable resources during the Industrial Revolution caused productivity per person to grow at an unprecedented rate. This rapid growth in technology was the key to breaking the Malthusian trap. As long as the pace of innovation was fast enough to outstrip the population growth that typically followed income increases, the vicious circle of poverty could be broken, leading to a sustained rise in living standards.

Industrial Revolution Challenged Malthus's Claims

Which of the following economic changes resulted from the Industrial Revolution?

How did the Industrial Revolution impact the labor market?

Which of the following best describes the impact of the Industrial Revolution on the production process?

What was one significant social change that resulted from the Industrial Revolution?

The growth of capitalist firms, which harnessed the technological revolution to drive innovation and productivity, triggered a fundamental structural shift in the economy. This resulted in the decline of agriculture's dominance as the primary source of income and output. This process unfolded through two main channels: firstly, the output from manufacturing and services expanded at a far greater pace than agricultural production, diminishing agriculture's relative share of the total economy. Secondly, this shift was mirrored in the labor market, as the proportion of the workforce employed in agriculture decreased while employment in the industrial and service sectors grew.

Decline of Agriculture's Economic Dominance

Illustrating a strict Malthusian viewpoint during the Industrial Revolution, the well-known economist Nassau Senior regarded the 1848 Irish famine as a necessary population check. The famine, caused by potato blight, was seen by Senior in such a stark light that he was reported to have expressed fear that the death toll of one million people would 'scarcely be enough to do much good.'

Nassau Senior's Malthusian View of the 1848 Irish Famine

During the industrialization of the United States, a notable trend was the increase in working hours for many individuals who transitioned from agricultural work to industrial employment.

Initial Increase in US Working Hours During Industrialization

The Industrial Revolution initiated a process where the deployment of more and better capital goods per worker led to a rise in the average output per worker (labor productivity). However, a concurrent effect of this technological shift was the displacement of some workers from their jobs.

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