The fast-paced world today has been pushing many changes, although inevitable, most are not ready. Let’s talk about industrialization, its effects, and how does it help if it’s good for the economy in this article.
The COVID-19 pandemic has sent the world economy into its darkest downturn since World War II, impacting all sectors, value chains, commerce, labor markets, foreign direct investment, insurance, and real estate investments, among other things. The pandemic’s impacts restrict economies’ capacity to boost real wages in the long run and impose a significant debt load. As soon as this health crisis wanes, economic recovery will be on its way and inclusive and sustainable industrialization will be vital to constructing a brighter future. The urge to adapt to the new normal is getting stronger and the demand to bounce back has been increasingly louder.
Generally, industrialization is good for the economy. Now that we are almost endemic, do we think that it still has good benefits for us? Effects of industrialization over the years have impacted more benefits in our economy as long as the factors that influence industrialization are properly managed and taken care of. How does industrialization help the economy? Industrialization led to modernization. How does this milestone in human history help the economy?
What is industrialization, anyway?
Industrialization is the process through which an economy transitions from predominantly agrarian to mass-produced, technologically advanced goods and services. This period is marked by exponential increases in production, shifts from rural to urban labor, and higher living standards. Industrialization can be regarded as the most important economic development in human history based on standard metrics like income per capita or worker productivity.
Industrialization had a domino effect that cannot be stopped nor can it be taken away. This has led to major changes in everyday living.
- The world’s economic development has been aided by industrialization.
- The method has increased productivity and allowed for mass production, resulting in higher living standards.
- From the beginning of the agricultural age from 8000 to 5000 B.C., human productivity and living levels remained unaltered. until 1760, when the first industrialization in the United Kingdom began.
- We have seen more commodities produced in less time, more time for amusement and leisure, and an increase in real incomes as a result of industrialization.
During the Industrial Revolution of the 18th and 19th centuries, major economic transformations occurred in Western economies. Here are the four significant industrializations that happened in our world history that are frequently cited by economic historians:
- Between 1760 and 1840, Great Britain experienced its first wave of industrialization.
- From 1790 through 1870, the United States was undergoing industrialization.
- Between the 1880s and 1970s, Japan saw unprecedented industrial growth.
- From 1960 to the present, China’s industrialization was underway.
From then until now, the question of how industrialization help the economy has always been in consideration of the country’s natural resources, capital or currency, workers or labor supply, consumers, technology and electricity, transport systems, and the government.
What are the effects of industrialization?
Industrialization has been associated with more education, longer life spans, rising individual and national income, and higher general quality of life, according to economic and historical research. Historically, the Industrial Revolution had a significant influence on the globe by raising productivity more efficiently and enhancing the quality of life for people in developed countries. Since emerging nations, like the Philippines, have not yet transitioned to industrialization completely, they will continue to profit as they do so, resulting in high growth rates and better overall circumstances for their people. How does industrialization help the economy?
1. Cost-Efficiency
One of the biggest advantages is that industrialization provides us with more items that can be purchased at reasonable costs. When an economy industrializes, products are produced more quickly and in greater quantities. This implies that prices can fall and a variety of different things can be produced. This specific breakthrough has a plethora of economic benefits. For instance, selling affordable house and lots are at reasonable costs because the needed raw materials are easily produced through machines and technology.
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2. Development of machines
As previously said, the first advantage of industrialization is the expansion of industries as a consequence of the large-scale manufacturing of commodities that are supplied to customers at considerably lower prices. Machines enable humans to do their tasks more rapidly as a result of industrialization. As productivity improves, more items are produced, and the excess results in lower pricing. Some may say that this is the most important advantage since it has a huge impact on economic growth. Cheap items are incredibly handy for customers, and they are more accessible to the general public. Many industries have significantly increased throughout the years as a result of industrialization. Adding technology or enhancing industrial procedures boosts production and productivity. To name a few broad examples, the agriculture business has advanced significantly over the years due to advancements in equipment such as tractors and harvesters, as well as products like fertilizers and insecticides. Transportation sectors have enabled numerous firms to market their products over longer distances. The Internet and associated technologies have accelerated the pace at which many firms work. All of these industrial innovations have resulted in increased output, which has contributed to economic expansion.
3. Saves Time
Another advantage of industrialization is that it saves a lot of time. Because time is finite, the business sector, predictably, follows Benjamin Franklin’s renowned axiom “Time is money.” There are only 24 hours in a day, no matter how we slice it. Factory employment, unlike rural labor, necessitates timeliness. People must learn to live by the hour. The primary goals are punctuality and productivity. When industrial enterprises in an industrial estate like Bria Homes learn to manage their time and deadlines, they improve their capacity to focus, which leads to higher productivity. In general, it is a highly coveted trait in business since effective time management is said to benefit the bottom line. More time is focused on the “more important” matters.
4. Improved Standard of Living
Moreover, industrialization has resulted in a significant increase in people’s level of living. Because of the presence of various industries, people are acquiring newer types of things like vehicles, furniture, appliances, garments, and so on, which increases the level of life of ordinary people. But, in this context, what does “quality of life” mean? Economic historians would relate it to happiness or satisfaction, but because happiness or satisfaction cannot be measured, they must equate the standard of life with monetary measurements such as real earnings or real income. Without the technical improvements brought about by industrialization, population growth may have been significantly restricted owing to the low quality of living and the availability of only expensive items on the market. From nipa huts to bungalows to affordable houses and lots and now to condominiums, the idea of modernization and the capacity to buy a space to call one’s own home could be a measurement of the “quality of life”.
5. Labor
Furthermore, the creation of a skilled workforce, including specialized employees proficient in certain crafts and duties, is a result of industrialization. This specialization contributes to higher productivity, which raises labor earnings. Increased earnings result in a greater quality of life for employees and their families. Industrialization provides a mechanism to manage and check the massive waste of human energy that could otherwise be employed elsewhere. Labor is another area in desperate need of improvement. Misplaced labor not only increases expenses but also makes it difficult for manufacturing to execute at the ideal level required in fast-paced and critical sectors. Every industrial firm will strive to attain the ideal condition by maximizing revenues or lowering production expenses. Conserving human energy is a critical component in carrying this out.
6. Brings about Urbanization
When it comes to the question of how industrialization helps the economy, industrialization has also led to the creation of new forms of transportation and communication, allowing for the quick import and export of goods. Many firms are now competing on a worldwide basis. Exporting and importing commodities is not only the foundation of every major, successful business; it also aids in the growth and expansion of economies. The globe has shrunk and gotten more interconnected. As a result of this advancement, a variety of replacements for consumer products are now accessible. Customers have a wider range of options, which leads to an enhanced level of life. Many additional enterprises, such as educational institutions and schools, banking and health services, and restaurant and entertainment complexes, have sprouted up around industrial sites. These businesses prosper as a result of the increased population from an industrialized region, which leads to greater total commerce. However, this may result in overcrowded spaces and overpopulation in the metro, that’s why some businessmen and economists tend to expand the concept to emerging cities in the country.
7. Reduces Unemployment & Poverty
Finally, industrialization produces new work possibilities, resulting in significant poverty reduction and lower rates of unemployment. These developments create job possibilities for individuals by creating other industries and businesses. At the same time, in a difficult economic situation, the normal sectors where you may depend on to expand business are often decreased. Consumers are purchasing fewer things. Companies recruit lesser staff who require insurance. Large insurance firms are typically stable, although they may survive by shrinking. Businesses must invest to function; hence more industrialization will result in investments that support other industries. Furthermore, an industrialized firm might provide goods or services that encourage other enterprises to improve their productivity. For the most part, industrialization ensures that people’s professions will be stable.
How does industrialization help the economy? A simple machine brought by industrialization in the 17th century has evolved into a high-tech machine that could efficiently do a lot of things in an instant to improve the quality of human life. Especially when the global pandemic hit the world, a lot of things have been realized: the way we do things with technology, some certain concepts and paradigms and perspectives were thought of. While we claim that industrialization is good for the economy, even amid a pandemic, too much of anything is not always good. There are things that we desire to achieve that may not work anymore because “more important things” to discover. Industrialization in essence is good for the economy, but too much of it may lead to one’s destruction.
Given the current situation in the global pandemic, what can you contribute to help the economy bounce back?
Written by Ruby Baclid
