Of course, corporations fail all the time, but the power of the corporate form of enterprise is easily proven in modern business life. The top companies in the world are corporations. Year after year, corporations dominate Fortune Magazine’s list of the top 500 companies. This ability to combine management talent was one reason the Industrial Revolution made such good progress. Once more, we should notice this new organizational tool was perfected in the Western world.
These advances brought a new kind of life to the world, an urbanized life in cities that would be larger than ever before but also connected to the countryside and other cities as never before. As railroads grew, connecting cities across various nations, the ability to transport raw materials increased as well. Factories, such as iron works or textiles, were constructed near the people needed to operate them and close to the populace that would buy the finished goods. The new urban centers brought together the railroads, the workers, the shoppers, and the sellers all in one relatively small area. With demand for labor growing wages were good, and the new machines coupled with cheaper delivery of raw materials allowed the prices of manufactured goods to fall. People financing these new ventures, bankers and stockbrokers for example, made enormous amounts of money as did the new manufacturers themselves.
The urban environment included some very rich folks, many of them new to such wealth. In the urban centers entertainment, housing, food delivery, and many other comforts grew to serve the new wealthy citizens flowing into the cities. For many, the new urban centers were shining examples of a new world where people could live in safety and contentment making a good living and building a sound future. Throughout Europe after 1815, economies grew at an unprecedented pace. Prices were falling and wages were rising all over Europe. Things were looking up for the common person as well. Peasants were turning into factory workers, food production was going up (new growing and harvesting techniques), and new inventions were making work simpler and easier all the time. The confluence of science, inventions, and work were changing the world in dramatic ways.
Naturally, not all of this was good. As the peasants moved to the cities, many found themselves crowded into small and unsanitary living areas (slums). The new factories polluted the rivers, air, and ground. The factory workers were expected to work extremely long hours under strenuous conditions. As long as there was a labor shortage the wages kept rising, but as the new machines became more efficient the need for labor fell. This created a labor glut that drove wages down. There was also the new boom and bust cycles created by the new economies. Market crashes affected more people, and downturns became a problem for the rich and poor alike. Governments themselves became concerned with these cycles, as market troubles put people out of work and increased stress on societies and their ability to address the problems created by hunger and homelessness. Some of the panics were long and harsh. Luckily, most of these panic cycles were short, lasting only 1 to 2 years, and the cities and governments endured without much change. However, far-reaching new philosophies came forth dealing with these new environments created by cities and the working class poor. In 1848, Marx and Engels published the Communist Manifesto that decried the conditions of the working classes and predicted a revolution would overthrow the capitalist system. Other reformers working to change the lives of the poor, such as the Women’s Christian Temperance Union (WCTU), thought alcohol was the root cause of urban evils and lobbied to ban liquor sales.
As the new cities continued to grow, the new underclass also grew. The problems of the urban poor would not abate in spite of the actions of social welfare agencies and special interests groups such as the WCTU. Crime was rampant in the crumbling areas of the cities where poverty reigned supreme. Theft, molestation, rape, prostitution, murder, beatings, and gang activity were ordinary events. Whores were everywhere in these areas, drunkenness was common, drug abuse relentless, and all manner of low behavior was ensconced in these eroding neighborhoods of the new urban scene. None of this was new; nevertheless, the scale of the problems had expanded greatly (except perhaps in ancient Rome). Ancient civilizations could not solve the problems, and the new urban centered civilizations likewise found no solutions.
Art and the Future of Europe
1874
Art was taking a new turn as the French Impressionist began exhibiting in 1874 (Monet, Manet, Renoir et al). These artists refused to paint glorious scenes from the past; rather, they painted scenes from the glorious, and not so glorious, present. Prior to the Impressionist, painting in France was confined to scenes from antiquity showing great moments in history such as the birth of Venus or a celebrated battle scene. The Impressionist broke this pattern by painting everyday scenes such as railway stations, a person sitting at a bar, or a crowded city street scene complete with balloon vendors. No longer did a painting have to show something noteworthy. The common person was now a good subject for immortality in paint. The Impressionist changed the methods of painting. The Impressionist avoided the insides of studios where a painting’s completion took weeks or months; instead, they went outside, and by using modern tube paints and canvas painted scenes rather quickly. Light was their subject, and the play of light across the scene was all important. Catching the fleeting light was hard; consequently, the faster one painted the better one could seize the ever-changing rays and convert them into a picture. The application of paint to the canvas was unlike the smooth style employed by accomplished French salon painters. Impressionist applied paint in dips and dabs that, if looked at closely, appeared to be a mess of colors; yet, upon standing back the colors, dips, and dabs fused to form a brilliant and glimmering recital of light and substance. In precise hands the effect was light and life dancing on the canvas.
Figure 33 Monet, Hotel de Roches Noires, Trouville, 1870.
The Impressionist displayed a new world of speed and commotion which was chaos up close, but from a distance became beautiful and seductive. As art “progressed,” this beauty fell into a deep ugliness without form or reason. The “splatter paintings” of the 1950s by Jason Pollock were foretold by Van Gogh (usually considered Impressionist), Gauguin, Seurat, Matisse (Fauvism 1909), Max Ernst (1923 early surrealism), Picasso and Braque (Cubism 1910), and Salvador Dali (Surrealism 1931). J. Pollock represents Abstract Expressionism of the 1950s.
Artists’ predicted where the world was heading from 1870 through 1914, and the destination was not the gleaming cities of sanity and serenity envisioned by the common person in 1800.[116] According to the artists of the late 1800s, the world was plummeting into insanity and darkness where life would make no sense, and the world of reason would melt away. According to the art of the 1950s, life had no meaning and the future was chaos or worse. The decline of the world, according to the artists, began about the time of the Industrial Revolution and the rise of science. Art foretold of a world without sense, purpose, God, or reason to guide mankind. A world ruled by machines doesn’t need a God. The purpose for existence was gone according to the painters, writers, and composers.
The visual arts lost their way after Impressionism. The world, while bad in many ways, is not awful everywhere. People do live for more than death. Science does not tell us the world has no God. Impressionism still observed the confused world as a good place where each person and event had a purpose. [117] To make this statement, they did something new and broke all the old traditions. As art went onward, it seems “new” was all that mattered. If it had not been done before, then it was genius. As a result, Picasso “sculpted” using an old bike seat with bike handlebars attached, called it “bull,” and won acclaim. Pollock threw paint at a canvas, a huge canvas, and became the greatest artist since Rembrandt. The same elitist trends go on today. This is not art. Art without skill, real and abiding skill with attention to detail, is nothing.
The Industrial Revolution never ended. Machines continue to improve, and new inventions are coming all the time. In the year 2010, machines and computers have long since been married and the re
sult is very smart machines. People may be the same murdering, cheating, conniving slime we have always been; nevertheless, we have nice stuff. From the end of the Napoleonic Wars to 1914, Europe generally enjoyed prosperity and peace. There were wars in faraway places as colonial powers fought to keep their conquests, and short wars erupted between Austria, and later France against Germany; however, to most people in England and Europe things looked good. Great advances were being made everywhere. One of the greatest was made by Frenchman L. Pasteur in 1864 with his germ theory. After Pasteur’s discovery, medical science began an unprecedented advance to the modern age and its fantastic medical miracles. Most of this was due to the Industrial Revolution. Our modern world enjoys industrial progress because of the foundations laid down from 1750 onward, and that prosperity still looks good.[118]
Rise of New Nations in Central Europe
After 1700, both Italy and Germany (Prussia) began to coalesce as nation states. By the peace of 1815 and the defeat of Napoleon, both Prussia and Italy gained territory and more independence. In 1848, there was a general revolt in the German and Italian principalities, but the armies remained loyal to the central governments, and in the aftermath these governments grew stronger. The sovereigns liberalized their policies by abolishing serfdom and adding power to representative assemblies. The Kingdom of Italy, proclaimed in 1861, grew to include Rome and Venice by 1870. Italy was at last united, but still struggling with industrialization and modernization. Otto Von Bismarck proclaimed the German Empire in 1871 after conducting wars to consolidate areas around Prussia forcing them under Prussian control. Bismarck was the political giant of the age, as his practical but cold-blooded politics united Germany, defeated Austria and France in war, and resulted in a German Constitution and Empire. Conflicts with Austria stopped its interfering with Prussian affairs, leading to reform in the Austrian monarchy and the establishment of Austria-Hungary in 1867. A final war of German consolidation took place between Prussia and France in 1871 (the Franco-Prussian War) which was sharp but short, resulting in Alsace-Lorraine being taken by the German Empire while France’s Second Republic was toppled and replaced by the Third Republic. Now Germany and Austria-Hungary were established as nation states in Central Europe, with Germany being the foremost of these nations. Bismarck then set out to prevent wars involving Germany from occurring. He had what he wanted, a united Germany, and he desired to maintain the status quo while Germany consolidated its industrial power. The advent of a new Kaiser, Wilhelm II, ended Bismarck’s foreign policies designed to keep Europe at peace.
The newly formed Germany wanted recognition and respect. Its problem, its new Kaiser thought, was Germany had an insufficient navy and no colonies. This was a very poor analysis. The Kaiser set out to get both, thereby putting Germany on a collision course with England and France. The competition for prestige and influence resulted in an all-out arms race. Germany’s main goal in the arms race was a powerful navy because she already possessed a powerful army. Germany managed to acquire colonies in Africa and the Pacific, but they never got to the point of satisfaction. Trying to be on a par with England and France, who pursued colonies for over a century before Germany’s founding, was insane. Why Germany thought it must be like England or France to achieve greatness is hard to understand. Germany’s obvious path was that of a great Central European land power, not a world sea power. Seeking sea power made it necessary to challenge England and upset the apple cart holding Europe’s balance of power. Dumb German decisions would trigger arms races and other tensions, thereby fostering the policies and decisions that led to a general European war in 1914.
The new nation states were stirring things up. The old pot of Europe began boiling over as the emerging nation states tried to push aside older nation states that disliked the unhappy interlopers for many reasons. Economic competition was unwelcome in 1900s Europe as nations looked upon economics as a win-lose game. In fact, when trade increases everyone benefits—even if some benefit more than others do. Thus, competition in Europe heated up, and centuries old hatreds refused to die. Mistrust piled upon tensions dating back to Charlemagne causing the European world to become a heavily armed and nervous camp.
Let Us Learn
History teaches us through the Armada to plan well, communicate well, and train people for the task. Spain’s leaders planned poorly, in that the Armada’s ships and crews were unfit for the task. Better training for the crews, better ships for the job of defending the Armada, and better communication to the troops in Holland might have altered history. Also, never assume God is on your side as King Philip assumed. From England’s response, we learn to be prepared, be ready to do the unusual to grasp the goal, and be flexible enough to act in accordance with the changing situation. And just because one is small, defeat does not follow by that fact alone.
The Protestant Reformation shows the dangers of corruption. The Catholic Church forfeited the right to lead by engaging in corrupt practices for centuries. It finally caught up with them. In addition, part of the corruption involved persecuting individuals calling for righteous change. Best listen to those asking for honest corrections to shady activities, even if they are your own. This revolt tells us the power of an idea. One man, after several suffered death before him, spoke of salvation by faith alone. Anyone reading the Bible could reach the same conclusion. That idea started the Protestant Reformation, a world changing series of events. People respond to ideas with fervor; recall this when watching political rallies or reading about revolutions. Rejoice in the power of ideas and understand their full power and potential.
Nations chasing England’s path to world power illustrate the idiocy of assuming what worked before will work now. Each nation’s or individual’s situation is distinct. Unclear, stilted thinking threw away chances for positive progress by Germany and other countries trying for “greatness” through military power and colonial acquisitions. Mapping out the best course of action requires knowing your unique situation, the situation of others involved, and knowing your own strengths and weaknesses. If you are five foot nine and weigh 165 pounds your chances of playing linebacker in the NFL are nil. Learn to live with that. If you excel at math attend college and major in engineering. Germany blew it big time by poorly analyzing their fundamental situation and its advantages and disadvantages. Rather, they dreamed of achievements not fitting their situation, angered everyone with their activities, and then ignored the anger and the danger. Don’t do that. Learn to be realistic and take things one step at a time. If your actions bring trouble coupled with active confrontation immediately change course so your actions bring positive results. Flexibility, clear analysis, and superior research bring positive rewards while avoiding dreadful pitfalls.
The French Revolution teaches us moderation. Radicals seizing the Revolution destroyed its ideals achieving worse than nothing. Practice moderation and notice where your actions are taking you. If your path is laced with strife, alter the path. Concentrate on small (moderate) thoughtful changes and notice the results. The big changes in France shook up the neighborhood turning all governments against them. The French Republic needed to alter course. Instead, they kept the same course and eradicated themselves. Avoid that error.
Chapter 11
America and the Americas
Latin America
In the late 1700’s historic events were taking place in Latin America because of events in Europe. After Napoleon conquered Western Europe (Spain included) he placed his brother Joseph on the throne of Spain. The Spanish people abhorred Napoleon and started a long gruesome guerrilla war against the French; plus, in Latin America the Spanish colonies likewise rejected French tyranny. Simon Bolivar (1783 to 1830), a Creole (colonist of Spanish descent), rose up against the French. His army won battle after battle against forces loyal to the Spanish throne, even though it was occupied by a Frenchman. He and other freedom fighters such as Jose San Martin (1778 to 1850), set an entire continent free. From the tip of Tierra del Fuego to
Mexico, Spanish and Portuguese rule was ripped away allowing the formation of free and independent states.
Looking back on what Simon Bolivar accomplished it seems a miracle. In spite of his numerous victories Simon Bolivar’s name is not a household word, and yet he was as accomplished as George Washington in setting men free. Of course, that is the best thing about General Bolivar; he conquered to spread freedom.
President James Monroe announced the Monroe Doctrine in 1823, warning Europe that the United States would not tolerate interference in Latin American affairs. The United States could not enforce this doctrine, but England could because she controlled the seas, and the doctrine fit with her policies since Britain wanted European powers to stay away from South America. Because of the American doctrine and its enforcement by Great Britain, Latin America was able to develop without unnecessary interference from Europe.
United States of America
In 1791, Congress established the first Bank of the United States (a central bank), and stockbrokers began meeting under a tree on Wall Street in 1792. The brilliant Secretary of the Treasury Alexander Hamilton was cleaning up the financial mess the United States had gotten itself into, and George Washington was unanimously elected to a second term as president. George Washington quit after his second term saying two terms was enough, and this precedent held until Franklin Roosevelt won election four times after declining to adhere to President Washington’s example. Now the US Constitution limits the president to two terms.
The Super Summary of World History Page 23