The Great Crises: The Great Rise of the 1850s
The economic recovery of England had a beneficial effect on the countries of Europe. From the middle of 1849, the industry of Germany and France began to operate. At the end of the year, a general revival of trade began, which many bourgeois naively perceived as a result of the restoration of order. With the advent of 1850, the situation improved even more. A period of unprecedented economic growth began.
The textile industry was the first to enter the recovery phase, while the heavy industry experienced signs of recovery much later. The construction industry followed her. Accumulated inventories were eliminated. The fall in raw material prices has facilitated a reduction in production costs. Throughout the world, the crisis has brought down wages. In Europe and the USA, compared with England, industrial development could accelerate due to revolutions that changed social relations or a large influx of immigrants.
Throughout Europe, revolutions were defeated. Monarchical regimes survived or were restored. Nations could not achieve liberation, form single states and completely end the feudal system. The struggle of the working class and the petty bourgeoisie for the republican system ended in failure. But the main goals of the bourgeoisie were achieved: as a result of the revolutions, the process of constitutional reforms began, it became possible to eliminate the feudal dependence of the peasants and the general acceleration of capitalist development. In France, the dictatorship of Napoleon III was more suitable for industrial capital than the former monarchy of bankers.
Classical Marxist analysis emphasized the fact of betrayal of the bourgeoisie
democratic ideals in the years 1848-1850. Meanwhile, unlike the revolutions of the end of the 18th century, the revolutions of the mid-19th century in Europe were not anti-English. The crisis of 1770-1790 aggravated the economic contradictions between England and its industrial and commercial rivals: Holland, France and the colonies of England in North America. The radicalism of the subsequent transformations was largely dictated by the need for the independent development of capitalism. English textiles and other products were competitors. In France, the radicalism of breaking feudalism with the division of estates entailed the expansion of the domestic market. The mass of peasants turned into independent consumers of industrial goods, which helped the growth of national industry.
The situation of 1847-1850 in Europe was different. Access to English factories was limited, but European landowners supplied agricultural products to the London market. They represented a much more bourgeois class than the old French nobility. It is no accident that landowners and industrialists in Europe were able to find a common language and stop the course of revolutions in the right place. There was another fundamental difference between the situation in the middle of the 19th century and the situation at the end of the 18th century. England is so technically ahead of the rest of the world that without the supply of British cars, industrial growth on the Old Continent would be extremely difficult. The low cost of labor compared to Britain facilitated the industrial revolution in Europe. This prepared a new turning point in the international system of division of labor.
The expansion of world trade over the 1850s was tremendous. World trade turnover from 1850 to 1860 increased by 85%. Several centuries of gradual growth took international trade to reach a turnover of 14.5 billion marks and a little more than a decade it took to double this figure. The average annual increase in world trade turnover in the 1850s was three times higher than in the 1840s. The physical volume of world trade also increased sharply, although less significantly due to an upward price trend.
The revolution in transport and communications (wired telegraph) played a crucial role in accelerating global market growth in the 1850s and the next decade. Thanks to innovations in these areas, it became possible to intensively develop many markets, some of which were included in the global commodity-money exchange in the 1820-1840s. In 1853, following the English example of China, the US Navy breaks into the Japanese market. Britain in the 1850s conquers the last independent principalities in India. However, not similar events (in contrast to the era that ended in the crisis of 1847-1850), but a qualitatively new development of existing markets ensures the growth of the world economy. The inclusion of new areas in world trade in the 1850-1860s complements the general development of capitalism, but does not determine it.