time to cross Atlantic 16 days 4 days and 11 hours * horsepower: 750 watts THE ECONOMIC IMPACT OF RAILROADS AND STEAM SHIPPING Upon the British Economy, 1830 - 1914 Speed and Lower Transport Reliability Telegraph Costs (1838) cheaper raw cheaper more social smaller better market materials foodstuffs mobility inventories information Lower production costs & more elastic capital savings: on working prices of marketable outputs labour supply ➔ capitals MARKET EXPANSION by Agricultural Relative More commercialized ➔ rising AGRICULTURE area & income ranges Shift to Livestock and More Specialized Crops REGIONAL URBANIZATION: more Transfer of Labour, Capital, SPECIALIZATION and and larger cities and towns Resources into Industry, destruction of local Commerce & Finance monopolies More internationally-oriented cheaper CAPITAL GOODS: RISING REAL INCOMES: specialization in industry, i.e., lower costs of plant and increases in relative demand shipping, and finance machinery with greater for livestock products, efficiencies & productivity commercial crops, industrial goods INCREASES IN INCREASES IN INCREASING LIVING in FOREIGN TRADE: INDUSTRIAL SCALE: ➔ STANDARDS fall in cheaper imports, more Manufacturing Industry and mortality ➔ population exports; exports of railway ➔ Transport increased growth iron and rolling stock and mechanization of industry ships
time to cross Atlantic 16 days 4 days and 11 hours * horsepower: 750 watts THE ECONOMIC IMPACT OF RAILROADS AND STEAM SHIPPING Upon the British Economy, 1830 - 1914 Lower Transport Costs Speed and Reliability Telegraph (1838) cheaper raw materials cheaper foodstuffs more social mobility smaller inventories better market information Lower production costs & prices of marketable outputs more elastic labour supply capital savings: on working capitals ➔ MARKET EXPANSION by area & income ranges More commercialized AGRICULTURE ➔ rising Agricultural Relative Shift to Livestock and More Specialized Crops REGIONAL SPECIALIZATION and destruction of local monopolies URBANIZATION: more and larger cities and towns Transfer of Labour, Capital, Resources into Industry, Commerce & Finance More internationally-oriented specialization in industry, shipping, and finance cheaper CAPITAL GOODS: i.e., lower costs of plant and machinery with greater efficiencies & productivity RISING REAL INCOMES: increases in relative demand for livestock products, commercial crops, industrial goods INCREASES IN FOREIGN TRADE: cheaper imports, more exports; exports of railway iron and rolling stock and ships INCREASES IN INDUSTRIAL SCALE: in Manufacturing Industry and Transport ➔ increased mechanization of industry INCREASING LIVING STANDARDS ➔ fall in mortality ➔ population growth
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