Patterns of Growth, Economic History, 1 LADE

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PATTERNS OF GROWTH:

THE EARLY INDUSTRIALIZERS

Patterns of Growth, Economic History, 1 LADE

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Patterns of Growth, Economic History, 1 LADE

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TaylorismFrederick Winslow Taylor, regarded as the father of scientific

management (1878), looked into steel industry concluding four principles:

• Replace rule-of-thumb work methods with methods based on a scientific study of the tasks. Scientifically select and train each employee.

• Divide work in different tasks and divide work between managers and workers, so that the managers plan and the workers perform the tasks.

• Pay workers according to their performance. • Provide detailed instruction and supervision of each worker in the

performance of that worker's discrete task.

TAYLOR, Frederick Winslow, A Piece-rate System (1895)

Patterns of Growth, Economic History, 1 LADE

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Relative share in World Industrial OutputRelative share in World Industrial Output

1750-19001750-1900

United United KingdomKingdomGermanyGermany

FranceFrance

Habsburg EmpireHabsburg Empire

ItalyItaly

USUS

JapanJapan

RussiaRussia

Patterns of Growth, Economic History, 1 LADE

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European Industrial Growth per inhabitant 1825-1913

France Germany Italy

Russia Spain Great Britain

Patterns of Growth, Economic History, 1 LADE

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Features of the US development 1. Previous dependence (Tea Party) 2. No traditions or privileges 3. Limitless and varied resources 4. High Population Growth (XIX c), Low

population density

1950: 19 inhabitants per Km2

1790: 2 inhabitants per Km2

5. Melting pot and Safety valve (Turner) 6. Regional Specialization 7. Sherman Anti-Trust Act 8. Fordism

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Features of the US development 1. Previous dependence (Tea Party) 2. No traditions or privileges 3. Limitless and varied resources 4. High Population Growth (XIX c), Low

population density 5. Melting pot and Safety valve (Turner)

1950: 19 inhabitants per Km2

1790: 2 inhabitants per Km2

6. Regional Specialization 7. Sherman Anti-Trust Act 8. Fordism

Patterns of Growth, Economic History, 1 LADE

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United States territorial formation

Patterns of Growth, Economic History, 1 LADE

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Fordism: Mass Production

TAYLORISM + Assembly linesMecanization

High wagesConsumption credits

T Model

Patterns of Growth, Economic History, 1 LADE

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Fordism: Mass production

Assembly line

Patterns of Growth, Economic History, 1 LADE

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United States

0500

100015002000250030003500400045005000

1820 1870 1953

GBFranceGermanyItalyUSJapan

GDP per capita levels

19

53

dollars0

100

200

300

400

500

600

1879 1899 1919 1937 1953

Labour productivity Capital productivity

Patterns of Growth, Economic History, 1 LADE

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Foreign investment distribution in 1914

A Investor countriesA Investor countries B RecipientsB Recipients

20%

13%

12%

5%7%

43%

Great BritainFranceGermanyBelgium, Holland, SwitzelandUSOthers

24%

27%

5%9%

16%

19%

Oceania Africa

Asia Latin America

North America Europe

Source: A.G. KENWOOD y A. L. LOUGHEED, op. cit. 54-55.

Patterns of Growth, Economic History, 1 LADE

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1789-1815: Political Revolution (Empire)1815-1851: Slow Growth (Restauration)1851-1870: Industrialization (Second Empire)1873-1914: Turn-of-the-Century Crisis

1. Scarce Population Growth2. Imitation and protectionism3. Small property4. Absence of raw materials5. Scarce urbanization: industrial dualism 6. Drawbacks in credit system

Periods

Features

France Development

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XVIII c. Zollverein (1833): awardeness of industrialization1833-1870: Imitation and foreign influence

1870-1871: Franco-Prussian War (1871: Empire)

1870-1914: Industrial supremacy

1. Unification process and regional differences2. Imitation3. Large size of the firm4. Free trade5. State Intervention6. Productive Dumping

Periodification

Features

German Development