Capitalism
Capitalism is one of the major causes of the Industrial Revolution. Capitalism is an economic system centered on the private ownership and operation of means of production for profit. Capital accumulation, competitive markets, the price system, private property, property rights recognition, voluntary exchange, and wage labor are all key features of capitalism. In a capitalist market economy, owners of wealth, property, or the ability to maneuver capital or production ability in capital and financial markets determine decision-making and investments, whereas prices and the distribution of goods and services are primarily determined by competition in goods and services markets.
The Industrial Revolution was driven by capitalism since industrialization required major labor and investment from individuals, not necessarily the government. For example, affluent entrepreneurs were crucial in Britain, where the Industrial Revolution began, since they utilized their wealth to build factories and mines. This investment from individuals motivated by profit would not have been conceivable without the emergence of capitalism. Furthermore, once the Industrial Revolution began, the individualistic ideals of capitalism contributed to the creation of an environment in which industrialization blossomed and finally extended globally.
According to History Crunch, in the societies of the Industrial Revolution, capitalism was a major component of classical liberalism. Classical liberalism was an economic individualism-based ideology founded on the ideas of economic freedom, private ownership, competition, self-interest, and self-reliance. In general, all of these concepts emphasized little or no government participation in the market and as much economic liberty as possible for individuals. This was in contrast to the previously mentioned mercantilism, which advocated for extensive government regulation and intervention. Classical liberalism's economic concepts first emerged in the 18th and 19th centuries, quickly shifting European civilization from left-sided mercantilism to right-sided capitalism.
