Final answer:
The Industrial Revolution contributed to the development of free-market capitalism by replacing landed fortunes with a wage labor system, fostering competition and progress, and enabling specialization and mass production.
Step-by-step explanation:
How the Industrial Revolution Contributed to the Development of Free-Market Capitalism
The Industrial Revolution, which occurred between 1790 and 1850 in Britain, played a crucial role in the development of free-market capitalism. During this period, capitalism replaced landed fortunes as the predominant economic system, where people exchanged labor for a fixed wage and used their wages to purchase consumer goods instead of producing them themselves. The Industrial Revolution also fostered competition, progress, and a sense of individual initiative that continue to influence us today.
One of the key drivers of the Industrial Revolution was the accumulation of capital by the monarchy and aristocracy during the preceding mercantilism period. This accumulated capital enabled the Industrial Revolution by pressuring monarchs to embrace trade liberalization and individuals' participation in the economy, leading to the growth of markets.
Moreover, the Industrial Revolution set the stage for the development of free-market capitalism by creating the conditions for specialization and mass production. As mechanization and technology advancements emerged, people began specializing in specific trades and producing goods for broader mass markets. This specialization, along with the increasing availability of cheaper consumer goods, transformed economic and social relationships.