Beginning about 200 years ago a profound shift took place in the way European economic life was organized. This is often termed the Industrial Revolution, but it might more appropriately be called the Capitalist Revolution. This was a time when water- and steam-powered machinery began to replace human and animal muscle power. More fundamental than the source of motive power was the change in the sizes of business enterprises. The new machines required enterprises of a vastly greater scale than had ever before been seen in human history. this would require capital investment possible only to individuals of great wealth, often requiring the active backing of governments in the form of economic, legislative, and military assistance.
As it happened the first such capitalist enterprises were cotton mills. This occurred because of a particular confluence of events. First was the so-called industrious revolution where individuals were motivated to industriously seek additional disposable income to finance the purchase of goods that signaled higher status. Second were the voyages of Columbus and da Gama that made widespread international trade possible–particularly trade in fine cotton muslins from India. The third was a sudden profusion of inventions that made it possible to mass-produce cotton textiles.
The result was the construction of huge cotton textile factories employing at first hundreds and then thousands of people. Sven Beckert in his book Empire of Cotton: a Global History uses the term War Capitalism to describe this process. According to Beckert War Capitalism has several distinctive features. Granting exclusive trade rights or manufacturing licenses. Naval support of international trade routes. The slave trade, both by making slavery legal and by providing legal protection to slave owners. Supporting the acquisition f land for factories and cotton plantations. Passing legislation that essentially compelled people to work in cotton textile factories. Providing the economic framework for banking and contract enforcement.
