The British Industrial Revolution in Global Perspective

By Robert C. Allen / Bob Allen (No clue why he has two academic names.)

★★★★★

Robert C. Allen seeks to explain the industrial revolution that started it all - the industrialisation of Great Britain. He locates two factors, which were specifically British-exclusive: a) London and its massive urban economy had very high wages, as they were one of the highest of the world (only USA surpassed them) and especially high compared to the costs of resources and consumption goods. b) UK had, with the exception of parts of Belgium, the most well-developed coal economy in the world by 1800, which was largely because the massive urban economy around London, strengthened by the afromentioned high wages, required coal for allowing its houses to be heated. This combination of cheap energy and high wages incentivised the creation of revolutionary technologies to save on labour costs, which was the fundamental basis for the British revolution as we know it. To quote the book: "The Industrial Revolution, in short, was invented in Britain in the eighteenth century because it paid to invent it there, while it would not have been profitable in other times and places." (p.2) And thanks to c) a successful global empire, the UK was able to use these productive technologies to dominate the world and become an economic powerhouse, while protectionism insulated it from competitive threats.
Discussing the limited evidence and contradictions in other theories, he articulates a convincing argument for the success of the British industrial revolution, also showing the vital role of high wages in incentivising inventions and increasing productivity, which is often ignored in discussions regarding these topics. It is also relevant for the Brenner Debate, as it argues (and in my view convincingly) that it was the urban economy which was vital for the economic transformation, not changes in rural Britain which prompted enclosures and agricultural innovations.