Chapter 64: Economic Ideas (The Neoclassics)

In the late 19th Century, the nature of imperialism was evolving. Driven by Realist geopolitics, capitalist forces, and racist assumptions, Westerners scrambled for power over the rest of the world. In this chapter, we will explore the impact of this transformation in China, Africa, and the empire of the United States.

A guest episode from the podcast History Daily! As we discussed back in Chapter 52, the new railroads played a major role during the U.S. Civil War. About a year into that war, a band of Union spies stole a train to sabotage the Western & Atlantic Railroad, a vital supply line at the heart of the Confederacy. Please be sure to check out History Daily. Every weekday, host Lindsay Graham (American Scandal, American History Tellers) takes you back in time to explore a momentous event that happened ‘on this day’ in history. It covers a broad mix of history, including medicine, science, technology, religion, politics, sports, and more. And it’s a more bite-size podcast than the Industrial Revolutions – each episode is about 20 minutes – making it suitable for your daily commute. https://www.historydaily.com/

In the mid-19th Century, two eastern empires were humiliated by industrialized powers. To avoid further humiliation, they both decided to industrialize themselves. In the late 19th Century, Russia and Japan went through rapid modernization. But which of the two succeeded would shock everyone, come 1905.In this episode, we will cover:The emancipation of the serfs in RussiaThe Witte SystemJapanese proto-industrializationThe Meiji RestorationAnd the Russo-Japanese WarBe sure to check out the Warlords of History Podcast as well!

The Second Industrial Revolution more or less coincided with the lifespan of the German Empire. From 1871 to 1914, the new nation adopted a fairly democratic constitution, saw massive population growth, and experienced extraordinary economic development. Along the way, they created innovative new goods and services, as well as worker protections unseen anywhere else in the world.It was largely thanks to the leadership of the Iron Chancellor, Otto von Bismarck. But after his fall from high politics, the empire redirected its gains toward militarization. And by 1918, that program would prove to be the empire’s doom.Support the podcast and get access to the footnotes and all bonus episodes at patreon.com/indrevpod.

At the end of the 19th Century, workers throughout the world were fighting increasingly bitter, bloody battles against their capitalist bosses and the governments protecting them. In this episode, we will cover such topics as:Worker internationalismParis CommuneThe Great Upheaval of 1877The Haymarket MassacreThe Homestead and Pullman strikesThe Belgian General Strike of 1893And more!

During the late 19th Century, socialism fractured into numerous schools. In this episode, we explore the growing field of socialist thought, as well as its many colorful characters.Topics in this episode include:Edward Bellamy and his novel, Looking BackwardFrench SolidarismFerdinand Lassalle, Eduard Bernstein, and the German Social DemocratsThe Fabian SocietyHenry George and his treatise, Poverty and ProgressMikhail Bakunin and anarcho-collectivismPyotr Kropotkin and anarcho-communismThe Pittsburg Proclamation and anarcho-syndicalismWatch my 2022 Mill Talk here!https://industrialrevolutionspod.com/episodes/2022/12/4/podcast-special-from-textile-workers-to-rideshare-drivers-the-never-ending-history-of-creative-destructionSupport the podcast: https://industrialrevolutionspod.com/supporters

Beginning in the 1870s, the Neoclassical School of Economics emerged. Borrowing the idea of marginal analysis from calculus, and applying it to the ethical theory of Utilitarianism, they revolutionized the way economics was discussed. Today, we discuss the various “Marginalists” of this school, and the impact they had on the history of economic thought.

As industrialization drove economic growth all over the Western World, financial systems had to keep growing in complexity and value. And as they did, they continued to drive industrialization further in turn. And, then as now, they were susceptible to greedy players, bad decisions, and panic.

Americans had long believed their country was a classless society. But by the end of the 19th Century, that myth had been shattered. In the Gilded Age, a super-rich elite emerged. They spent lavishly on houses, parties, and luxuries, while also investing in education and philanthropy. In this chapter, we’ll discuss this new upper-class, as well as how wealth in the United States became so imbalanced. We’ll explore topics like homesteading, Reconstruction, immigration, political corruption, corporate consolidation, and more.

The live recording of my recent Mill Talk at the Charles River Museum of Industry and Innovation.