THE SECOND INDUSTRIAL REVOLUTION:
This revolution was also known as the Technological Revolution. It was a phase of rapid standardization and industrialization since the late 19th century. The economy grew due to several factors:
a) New energy sources and industries:
Electricity: It was used to power machines and new forms of communication like the telegraph or the telephone.
Petroleum: This energy grew in importance with the invention of the combustion engine. As a consequence, the iron and steel industry and the chemical and electrical industries became increasingly important.
b) Large companies and modern banking:
When the industrial revolution began, most companies were small and owned by a single person. However, the profits were not enough to buy more modern machines and hire more workers. To solve this problem, corporations were created. Here, the capital of the company is divided into shares, which are traded on the stock market. Those who buy them participate in the company as shareholders.
Banks started lending money to companies. It was the beginning of financial capitalism.
c) New systems of production:
Taylorism: Frederick Taylor invented a production process, which was divided into small tasks that were timed. Each worker specialized in a certain task and was paid according to the work they completed.
Assembly line: It was first used by Henry Ford in the automobile industry. Products were passed from one worker to the next along an assembly line.
Mass production: Numerous identical parts of an item were manufactured before all the different parts were used to assemble the final product. So, large quantities of goods were made at reduced production costs.