Key Concepts- Economic conditions (mid-late 1800's)

Economic Prosperity 

• Britain dominated world economy- produced 40% of total goods being traded
• Had the advantage of the Empire to gather new materials to up the economy 
• Mid 19-th century- high of economic and industrial power
• Improvements in technology and farming increased production
• Low taxation
• Encouraged free trade
• Better education and health (e.g. Public Heath Act 1875)- happier and healthier workers, had higher income- all allowed for an increased consumption 
• Increase in demand= increase in production= better profits
• Largely unopposed as economic powerhouse 
• Golden age of agriculture- repeal of Corn Laws (1846) did not hurt farming as was feared, 'High Farming' established (increased productivity), increase in farming knowledge (boosted by knowledge from Empire) meant an increase in the farming market
• Railway boom boosted trade- heightened by steamboats and engineering 
• Key British industries (coal, iron, steel) continue to develop- export of coal increased by 8 million tons in 25 years and continued to rise
• Suez Canal cut the length of time it took to get to the East- more efficient trade- in turn, called for an increase in the production of steamships which meant an increase in international trade

The Great Depression (1783 onwards)

• Agricultural stagnation- wet summers and disappointing harvests, imports from overseas were cheaper 
• Industry slowed in development- fall in prices overseas meant a loss of profit
• More competition as the rest of the world began to catch up (e.g. newly unified Germany)- made the market more crowded
• Drop in production- especially in key British industries
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