1. Effects of Socialism: Socialism was an economic theory that sprang almost directly from the Industrial Revolution. It was a reaction against the unregulated capitalism of that time. Socialism proposed that society as a whole should control the means of production. It advocated – that the Government exists only to oversee its initial phases and then to become nonexistent, leaving the people to govern themselves cooperatively.
This contradicted the tenets of laissez-faire capitalism, which stated that the best total result for the society was achieved if competition took its natural course. This movement was inspired by the problems that the Industrial Revolution presented for the common worker. Working conditions, long hours, and low pay made the workers to come together and unite for a common socialist system.
2. Effects on Capitalism: Industrialization depends largely on capital i.e. Wealth available for investment in order to speed up development and make more wealth. Capital investment was one of the leading reasons as to why the British industrial economy prospered.
3. Factories and Urbanization: Industrialization led to the creation of factories. The Cotton spinning activity was the first to be mechanized. Later, a factory system developed. A large number of workers migrated to cities in search of employment. Many cotton mills were established at Manchester which was the first Industrial City of the World. The factory system speeded up urbanization.
4. Child Labour: Industrial Revolution led to an increase in population. Infant mortality rates reduced remarkably. Still, there was only a limited scope for education. **** were expected to work at less pay even though their efficiency was comparable with adults. There was no need of strength to operate machines but skilled labourers were needed. Since the required skilled adults were not available, child labour was the preferred choice in some of the manufacturing industries.
Thus, the Industrial Revolution brought drastic changes in the life of people across nations. It gave rise to urban centres requiring vast municipal services. It created a specialized and interdependent economic life. It made the urban worker completely dependent and at the mercy of the employer. Relations between capitalist and labour were getting aggravated, and Marxism was the result of this unrest.
The revolution also brought a need for a new type of state intervention to protect the labourer and to provide necessary services. Industrial Revolution provided the economic base for the rise of newer professions, an increase in population and improvement in the living standards.
