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The factory system developed in the late eighteenth century, chiefly due to the advances being made in the textile industry. With inventions such as the flying shuttle, the spinning jenny, and many others, the making of cloth became much faster, and could be done on a much wider scale .
Suddenly the Industrial process makes labour a comodity, workers lives & incomes are no more & no less that something to be used and discarded. This is not all down to John Kay & his flying shuttle, not by any means. But it is something which speeded the process of spinning & weaving and led to factories & slums & industrial, urban poverty. Which does not mean that before there was no such thing as rural poverty.