The Modern World, Part One: Global History from 1760 to 1910 -- Week 7 Video Lecture Summary
Video 1: The Second Industrial Revolution
The period between 1890-1914 is the most dynamic period in history: politically, socially, economically. There's a giant advance in all of these. The first Industrial Revolution was characterized by the steam engine. Now new technologies include electricity, the combustion engine, petroleum as fuel, cars, chemistry, and chemical products. Everything is accelerating more quickly than ever before: a situation causes a problem which leads to a technological solution and so on. We have machines that make machines. In addition, more raw materials than ever have to be sourced and imported.
There are lots of advances in medicines: aspirin for instance. German universities were considered the best in the world and many medicinal advances are invented.
Breakfast cereals emerge.
Coca-cola breaks as a consumer product. It is sold for the first time in thousands of locations. This means the production of soda water must be commonly available, as well as refrigeration which preserves carbonation better.
Chemical explosives are also invented like dynamite and TNT which are far more explosive than gunpowder. Nobel invented TNT and he funded the Nobel prizes.
X-rays are invented by Wilhelm Roentgen. He is a chemist/physicist working at a German university. Universities are cultivating knowledge for the sake of knowledge rather than commercial purposes. William Coolidge the American however is working at General Electric (founded by Thomas Edison) and he invents a tube that can channel these rays, the antecedents of which are used in modern x-ray machines today.
Electricity was used to generate power to power lights, dynamos equivalent to thousands of horsepower.
The internal combustion engine was also developed. This engine was smaller and more convenient than the steam engine and used liquid fuel. It enabled the invention of cars and airplanes. It is a very complex machine.
People live longer, stay up later, travel farther, and have more autonomy thanks to these inventions.
Japan, the US, and Germany are the main players in this revolution (as opposed to the UK in the first revolution). There's an enormous demand for rubber, tin, oil and so sources of these are also rising in importance.
In 1900 US, people are still living in communities of 2000 people or fewer. In 1850-60 Chicago is a tiny town, but it's huge at the turn of the century. In 1910 it's the sixth-largest German city in the world due to the German immigration to Chicago. 40-70% of people around the world are now living in cities!
This necessitates utility infrastructure, water infrastructure, a sewage system, a police force. Cities are having bridges built, transportation systems. Civil engineering is emerging. Trolley systems are built. Cities used to be dangerous places to live due to poor sanitation, with cholera killing people due to the absence of clean water.
Corporations are emerging. For instance, the Standard Oil Company of Ohio created petroleum products.
Most importantly, the rise of modern capitalism enabled these changes. Next time.
Video 2: Modern Capitalism
What's the difference between traditional trading/commerce and modern capitalism? Money and organization.
Traditionally, even in the 1850s-60s, money was gold or silver coin-based. Governments and companies issued money. In the 1870s, money begins to become standardized via the gold standard. The GS originates in England but is adopted by France and later Germany when Germany wins the Franco-Prussian war and makes France pay lots of reparations in gold. The US joins in too. Everyone else soon follows, which creates stability. Exchange rates stay fixed for years and international investments become common: the Golden Age of commerce. Tons of loans are given. Insurance booms. All of this comprises a huge and complicated financial enterprise.
Hard money meant there was a limited amount of money in the world. Because of this, there was a prolonged recession in the 1870s-1890s with a financial crisis in the early 1890s. Crop prices were dropping thanks to the global crop market opening up, but this meant that farmers were making less and less and having trouble paying loans. They lobbied for adopting a silver standard. An anti-gold standard presidential candidate loses in the US to McKinley who is pro-gold standard. Thankfully, more gold is discovered in South Africa and Alaska, relieving the depression in the 1890s and creating a boom.
Thus, modern capitalism is characterized by standardized money and a complex financial infrastructure to support it.
Between 1890-1914, world trade quadruples!! The demand for commodities rose to accommodate all of the industrial developments of the era. This is enabled by safe seas (thanks to the Pax Britannica?).
Steamships are now carrying much heavier cargo. Between 1880-1900 there's a huge leap in how much they're able to carry: from 600/700 tons to 10,000!
Britain is the only major country the legislation of which supports free trade. To protect its industries, the US has tariff barriers that impose taxes on imports. Germany does too. In England free trade becomes controversial. Joseph Chamberlain is pro-protectionism and is supported by farmers in the UK and Africa (why?) and South America (why?) (maybe because they will also be protected rather than treated as colonies?). Protectionism has opponents: David Lloyd George the liberal politician, backed by the working classes who don't want to pay higher prices for consumer products. Global erection of tariff walls means a throwback to imperialism again (countries wanting to have more resources available within their empire so they can offer cheaper goods).
Industrial Society
Corporations as we know them today emerge in the 1870s and become powerful by the 1890s. A corporation has limited liability. This is as opposed to a small family-owned business where all the liability lies with the owner. Corporations are third-party entities in which people can invest and if it goes bust all the investors are the ones affected. They are supported by a legal structure and the infrastructure to sustain the corporation for generations.
People become fearful of the power of corporations.
The octopus was a symbol that represented the industrial monster: monopolies, ownership of transportation systems and electric and gas industries, and oil industries. There's a fear that these industries will also spill over into governance.
Corporations change the fabric of society. New roles were needed:
- Managers
- Professionals
- Engineers
- Lawyers (law schools were created during this period)
- Doctors
- Professors (to teach in universities)
- Bankers
- Insurance professionals
Video 3: The Dynamo and the Virgin
Video 4: Modern Nation-States
- Better organization
- Better communication
- Better infrastructure
- Regulation
- Insurance
- Social insurance (pioneered by the Germans)
- Military power
- Rise of uniforms, masculinity, masculine physical strength
- Greater involvement in commerce
- Trade infrastructure
- Highways
- Gas stations
- Coaling stations around the world
- Maintaining networks of global coaling stations
- Mines
- Ports
- Railways
- Infrastructure in weaker countries funded by investments from stronger countries with commercial interests
- Various countries (Britain, France) are the dominant investors in various continents (Asia, Africa)
- Maintaining a political relationship with these states
- Weaker states borrow money to become more developed
- War threatens when countries fail to repay debts
- Europeans are bound by the Monroe Doctrine so the Americans get involved on their behalf. Another reason the Americans get involved is to keep imperialism from expanding to the US (?).
- Telegraph lines laid across oceans
- Standardized money
- Corporations
- Legal system
- Laws regarding unions
- National services
- education
- police
- social services
- lots of employment!
Video 5: Revolutionary Nation-States
- What is the role of the local Catalonia governance vs. the national Spanish governance?
- Who makes decisions about industry and commerce?
Video 6: Battle Lines
- National traditionalists are in favor of:
- Upholding national traditions, celebrating national values, racial or ethnic identities.
- Established religions.
- National purity.
- Personified order/authority like a monarch.
- Institutionalized order/authority like the army.
- Imperial expansion/establishment for power/profit.
- Attacking social revolutionaries.
- Supporting farmers and landowners.
- Popular among farmers who are suspicious of newer institutions.
- Popular among landowners who benefit from the traditional institutions.
- National conservatives:
- Are kind of like modern-day American republicans.
- Otto von Bismarck.
- Believe in a strong national government.
- Are secular: separate church and state, control the power of the Church.
- Are for a modern military.
- Taxes to maintain a strong government.
- Protectionists, protecting industries from foreign competition.
- Spiritual civilizers.
- Popular among businesspeople and the new professional classes.
- 19th century liberals:
- The democratic party in the US.
- Weak national government.
- Individual liberty.
- Religious tolerance.
- Wary of large army. More anti-military, pacifist.
- Anti-empire or pro-empire to bring enlightenment.
- Free trade and free markets, less government intervention.
- Oppose big government, big business, big worker unions.
- Support small farmers, businesspeople, craftspeople.
- More civil and political rights to women.
- Democratic socialists:
- Strong central government as a counterweight to powerful businesses.
- Less identification with the nation, more solidarity with the working classes.
- Supporters of big business and big unions: convert private property into public gain.
- Secular, oppose the intrusion of religious authority.
- Protect the right to organize by workplace, job, class.
- Internationalist, pacifist, anti-empire, anti-military (because they see empires and militaries as serving the interests of businesses).
- Organize for self-help: create unions where people help similar people who may not be represented.
- Organize to form political parties to get benefits from the state and other protections.
- Revolutionary socialists:
- The existing order is intolerable.
- Secular.
- Anti-military.
- Threaten the established order.
- Organize, underground as needed, for mass action (violence if necessary).
- Internationalist agenda.
- Lenin emphasizes highly organized "Cells" (groups) for when the time comes for rebellion.
Video 7: The Battles Begin
- Pragmatism
- Experimenting with governance (similar to Bentham)
- Grassroots democracy (as opposed to Bentham who was top-down)
- Founder of Laboratory Schools
- Emphasis on education at all levels to reshape society. An idea that helps close class differences
- State of constant flux
- Domestic issues are affected by modern influences
- Increased power of the state
Video 8: The Big Picture
- Contrast between the traditional world and the modern world
- 1760
- Commercial revolution
- Military revolution
- Democratic revolution
- These revolutions reinforce each other
- 1800s
- The emergence of great powers
- The rise of nation-states
- New kinds of political structures
- Rise of industrial and scientific power
- Global Europe -- Europe is involved everywhere
- 1870s -1880s A transition period
- 1880s - 1890s A great acceleration
- Rise of modern capitalism
- Rise of modern nation-states
- 100 years of Great Struggle
- How should we organize these modern societies?
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