The world of the 1880s
100 years after the American and French revolutions had birthed modern politics as we know it, and the Industrial Revolution had begun building the modern economy as we know it, life had changed for human kind. How did the world of the 1880s compare to the 1780s? For starters, the world had become a genuinely connected single system. Almost all parts of it had been discovered and adequately mapped out. Railways and steamships had turned cross-continental travel from an endeavor that lasted for months into trips of only a few weeks (and soon to be only days). The electric telegraph allowed communication to spread across the entire world in a matter of hours. Now, the people of the world could travel to and communicate with each other exponentially faster and easier than ever before. Second, the world was more densely populated than ever before; the best estimates guess that the world population in the 1880s (around 1.5 billion) was about double that of the 1780s. Although the world was simultaneously more dense and more tightly connected than ever before, it was also beginning to develop deeper divisions than ever before.
In the 1700s China had seemed to be a very strange land to Europeans, but economically no one argued that it was backwards or inferior. By the 1880s this was no longer the case because the Industrial Revolution had transformed the Western countries. The per capita income of the ‘developed’ industrial world in the 1880s was approximately double that of the ‘undeveloped’ world; by 1913 it had grown to triple. The technological advancement of the industrialized countries was a major reinforcer and perpetuator of this gap. By 1880 it was increasingly evident that the technological inferiority of the underdeveloped worlds’ armaments, armies, and weaponry made these areas easier to conquer and subjugate. Napoleon had been able to defeat the Mamluks in Egypt in the late 1790s, despite their comparable equipment, due to the organizational revolution that had transformed his army thanks to the French Revolution. By the 1880s the Industrial Revolution had penetrated warfare so deeply that the industrial nations of the world now brought far superior equipment into the battlefield than their opponents. Not only were they organizationally superior, but now they had explosives, machine guns, and steam transport.
As the very epicenter of capitalism and industrialization, the European powers were the core of the world economy and bourgeois society by the 1880s. The “long 19th century” (1780s-1914) was a European century. Although Japan and the U.S. were catching up, European industrial output was still over 2x as large as America’s during this period, while most major technological innovations still came from Europe. Culturally, the elites of the less developed parts of the world looked to Europeans as their models, while white settlers/colonizers spread European culture by force wherever they went. Both of these were reinforced by the foreign elites’/white colonizers’ economic dependence on the European metropole. The ideology of liberalism called for its self-proclaimed “superior” culture to be freely spread (by force, if need be) to all corners of the world; its achievements as such were the public libraries and museums. Additionally, the political model of the constitutional nation state was also adopted throughout the world. Finally, literacy spread but was heavily dependent on class; in general, the bourgeoisie had higher literacy rates than the proletariat, who had higher literacy rates than the peasantry.
Depression
In the 1890s, in response to economic depression, all industrialized nations of the world except for Great Britain abandoned free trade and attempted to enact tariffs to protect at least some of their major industries as well as their agriculture. Many historians are puzzled as to why contemporaries of the 1890s believed they were living in a depression because, while there were definitely fluctuations in trade, the overall output of production rapidly increased throughout the decade. The issue, in fact, was not production but profitability. The agricultural sector was hit the hardest; it had overproduced and, with transportation costs dropping thanks to improved technology, its inflated prices began dropping by the 1880s. This was why that decade had experienced a mass migration from Europe to America;. European governments openly supported this practice because they saw mass migration as a safety valve for their discontented peasantry.
Protectionism was not the biggest symptom of increased competition between industrializing nations. Even more important was the concentration of capital into hitherto unprecedentedly large trusts, as well as the near-universal implementation of scientific management procedures in the workplace. The concentration of capital was the expression of a general tendency for larger firms to swallow up smaller ones, and then for these large firms to divvy up markets between each other. Scientific management showed that businesses were increasingly attempting to regulate and control even the most minute details of labor in order to maximize output (and therefore profit).
This period saw a clear transformation of the structure of businesses. Corporate organization and management turned Adam Smith’s ‘Invisible Hand’ of the market into the ‘visible hands’ executives and managers. The corporation replaced the individual, and the typical businessman was less likely to be a family member of a founder and more likely to be an educated executive overlooked by a shareholder or board of managing capitalists. Internationally, the depression turned contemporary views of economics on their head. The economy appeared to be a zero sum game where not just firms, but nations themselves, competed, and the gains of one nation seemed to inevitably come at the expense of another. This zero sum game led to an additional way to compensate for the depression: imperialism. The pressure for capital to search for new investments, raw materials, and cheaper inputs contributed to state policies of expansion and colonialism. A U.S. state department official put it succinctly in 1900 when he stated that “Territorial expansion is but the by-product of the expansion of commerce”.
A continuation of the Industrial Revolution
From the mid 1890s until World War I, the global economy rapidly shifted from a depression to a large boom. This period saw Britain decline as the workshop of the world from its commanding stranglehold that it had had in the 1860s. It also saw what we now characterize as a second industrial revolution, although contemporaries at the time believed it to be a mere extension of the first industrial revolution. Steel, electricity, and oil power became more common place; automobiles, bicycles, airplanes, cameras, and the cinema made up the environments and interactions of everyday life. On top of these developments was a parallel expansion of previously important industries such as railways which, from 1890 to 1918, had more tracks placed than in the entire period of history preceding those 28 years.
For the first time in history, media had fully transformed into what can accurately be called ‘mass media’. Mass media was important because as the vote expanded and democracy spread, the ruling classes had to find some ways to prevent the lower classes from democratically taking back wealth/benefits/power from them. Often, some form of welfare concessions were made to the lower classes, but propagandistic ideological warfare through mass media was equally as important of a tool. All of these factors played into imperialism: the growing economic competition between European industrial nations increased their hostility to each other; the technological revolution made transporting supplies and sending communications/coordinating actions across vast distances easier for armies; and the usage of mass media helped inculcate jingoism nationalism into the masses more effectively than ever before.
Imperialism
Imperialism led to the divvying up of land belonging to non-capitalist societies between the industrial capitalist nations of the world. These backwards regions simply did not have the means to defend themselves against the more technologically advanced capitalist powers. Almost all of Africa was divided between the European industrial powers;
nearly all of the Pacific was divided between European powers, the United States, and Japan. Large swaths of Asia were informally divvy up to European powers: Russia tried to advance into the continent via direct territorial conquest, Britain expanded its sphere of influence in India, many European powers had satellite/vassal states throughout China, France set up colonies in IndoChina, and Japan conquered Korea and Manchuria. The Americas, besides parts of the Caribbean, remained nominally independent, although it was well understood that they were economically dependent on the industrial powers and that the United States, through the Monroe doctrine, was the sole hegemonic power over South America. Overall, from 1875 to 1914, around 25% of the world’s landmass was redistributed as colonies or protectorates to a handful of capitalist empires: England, France, Russia, Italy, the United States, Belgium, and Japan.
Politics and economics seemed to morph into a single sphere during this period as the state began playing more of a direct role in economic affairs. Emperors and empires were as old as class society, but the concept of imperialism and its seemingly direct link to the economic sphere began to really be formulated in the 1890s. The term ‘imperialism’ was never used by Marx; it originated in Britain in the 1870s and entered the general lexicon in the 1890s. Despite what some may argue, the contemporaries of the 1890s believed imperialism to be an entirely new development and not a holdover from the pre-capitalist era. Many people were even proudly self described as imperialists, although the term now is undoubtedly a pejorative.
One of the main causes of the division of the globe between the capitalist powers was their need for hitherto unused raw materials thanks to the second Industrial Revolution. These raw materials, such as the rubber and oil necessary for internal combustion engines, were only found in remote regions, while the new electrical and motor industries needed copper, which was only to be found in the backwards areas of the world. Besides the obvious search for raw materials, what were some other explanations for imperialism at the time? Some (most famously J. A. Hobson) tried to connect the increase in capital exports to the new imperialistic tendencies. The claim was that profitable investment outlets were not available domestically (Hobson argued this was a result of monopoly capital) and therefore had to be located abroad. However, just by looking at the biggest capital exporter at the time, Britain, this explanation appears flawed. Britain’s export of capital did not go to the underdeveloped world, but rather to what were once her white settler colonies (mainly the United States, Australia, Canada, New Zealand, and South Africa). Most of this investment was put towards public railways and was less lucrative than investments at home but also safer. To link this to the investment in colonies in places like Africa and Asia seems untenable.
A more convincing argument centered around the search for markets to help deal with the crisis of overproduction that had led to the depression of the 1890s. In a sense this was an extension of the protectionism that had grown since the 1880s: colonize (whether formally or informally) large swaths of the globe to give your state’s large firms/corporations huge protected markets backed up by the force of your imperial state. The great power rivalry that followed was a natural extension of the economic rivalry that originally led to this ‘colonization for protected markets’ process. It became a status symbol as a Great Nation to control more colonies than other Great Powers, a fact German imperialists were deeply resentful of.
Finally, many observers, (who often were imperialists themselves like Cecil Rhoads) noted that imperial conquests had the effect of quelling domestic discontent. Although there is no proof that imperial or colonial conquests raised the wages or relative standard of living of the masses of the imperialist countries, it did give them a psychological wage in the form of feeling superior to “backwards cultures“. It also united them through a collective sense of nationalism. The use of imperialism to smooth over class conflict at home was important during this period, because for the first time in history mass politics became a reality as democracy and suffrage spread to the majority of males in most liberal capitalist societies. This development was imbued with contradictions.
Democracy
Liberalism believed democracy to be the rule of the poor over society. The bourgeois liberals originally were in favor of implementing constitutions and having elected assemblies as forms of governance because it was in their best interest to do so against the aristocracy; they had put property requirements and other such measures in place to prevent the majority of the population from taking advantage of these political triumphs. During the age of imperialism, property and education requirements for voting, as well as hereditary chambers of peers designed to insulate the aristocratic classes, were weakened or abolished entirely throughout the western world. This was a terrifying development for the ruling classes. In their eyes dangerous masses were too unruly, too uneducated in the fine arts of politics and economics, and too willing to turn society into the (from their perspective) disastrous Paris Commune of 1871 through social revolution. Even still, after 1870 it became clear to all that the masses would be a part of the political theater whether the rulers liked it or not; the march towards general democracy seemed inevitable.
The goal then became how to limit the power of the franchise and manipulate the voters. Bismarck famously placed strict limits on the political power of any assemblies elected by universal suffrage (like the Reichstag); others like Britain and the United States had already implemented weighted voting or electoral colleges to but brakes on democratized representative assemblies by giving some voting blocs more power than others; Belgium, Italy, and the Netherlands effectively gave more votes to those with more education. Gerrymandering (aka “electoral geometry”) carved up and manipulated constituency boundaries in order to minimize votes for some parties while maximizing them for others. The open ballot was often standard, meaning voters often cast their votes under the watchful eyes of their bosses or landlords, thus influencing who they felt comfortable in voting for. However, these brakes merely slowed down the pace with which the masses entered into politics, but by the 1900s not even the epitome of reaction, Tsarist Russia, could stop the inevitable advance of democracy.
Mass political participation via the vote also meant mass mobilization of voters, which meant mass political parties, mass media, and mass media propaganda. World leaders who, up to this point, had never spoken politically before anyone other than fellow elites had to tone police themselves; it was not politically feasible to tell the majority of voters that you think they should have no political rights after all. Whether through the megaphone or through their political parties’ respective newspapers, leaders from here on out have been forced to camouflage their beliefs/objectives through rhetoric. Overall though, and often thanks to the confidence engendered by the economic boom of the late 1890s, governments and statesmen were generally confident in their abilities to manage democracy. As labor and socialist movements emerged as international phenomena around 1890, they became the primary concerns of the ruling classes of Europe and the Western world. Catholics and religious movements had been generally easier to integrate and manage thanks to their inherent conservatism. Labor and socialist movements took a little more finesse. For a while, most rulers attempted to stamp them out with an iron fist before realizing that it would be more effective to win them over with the carrot rather than the stick.
The 1890s therefore saw an offensive against unions in the United States, Germany, Britain, and other industrialized nations. By 1900 it had become clear that a moderate/reformist wing had emerged in all the labor and socialist movements, even in the Marxist movement (exemplified by Eduard Bernstein). While socialists were still generally barred from government in the early 1900s, the bourgeoisie and ruling classes found relative success with bringing in less radical members of the labor movement into seats of power. Systematically in Britain and France, members of labor parties were brought into parliament and had pacts/coalitions formed with more conservative parties/statesmen. The less radical members of the labor movement were therefore co-opted, defanged, and integrated into the capitalist system. This strategy (which was a coherent strategy by the ruling class by the way. They were not doing this just to gain votes, because the votes to gain were relatively puny, but rather to engage in class warfare and co-opt resistance from below) succeeded in permanently splitting the radicals and reformists in the labor movement into irreconcilable wings, allowing the ruling classes to isolate the radicals further. Part of this also meant giving material concessions to the working class/labor movement in the form of welfare and increased regulations. Both of those material concessions implied and led to the strengthening powers of the state apparatus and its ability to intervene into the economy.