How did the foundation of economics change like a set of the industrial revolution
The foundation of economics underwent significant changes as a result of the Industrial Revolution. Prior to this period, economies were predominantly agrarian and focused on producing goods for local consumption. However, the Industrial Revolution brought about a shift towards mass production, urbanization, and technological advancements.
One of the key changes in economics during the Industrial Revolution was the rise of capitalism as the dominant economic system. Capitalism, with its emphasis on private ownership of the means of production and profit maximization, became the driving force behind industrial growth and development. This shift from agrarian economies to industrial economies also led to the emergence of new economic theories and ideas, such as classical economics and the labor theory of value.
The Industrial Revolution also saw the rise of specialization and division of labor, leading to increased productivity and efficiency in production processes. This in turn led to economic growth and the accumulation of wealth on a scale never seen before. Additionally, the revolution in transportation and communication technology facilitated the expansion of markets and trade, leading to increased globalization and interconnectedness in the global economy.
Overall, the foundation of economics changed as a result of the Industrial Revolution by ushering in a new era of industrialization, capitalism, specialization, and globalization that continues to shape economic thought and practice to this day.