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Adam 'Sigma' Smith publishes the Wealth of Nations
Wealth could be infinite if governments did not intervene in markets and individual pursuit would aid the 'invisible hand' of market forces. -
Infrastructure
Empire transported goods through shipping, railroads and canal. Clipper ships helped transport high value, low volume goods, whilst the blue squadron of the Royal Navy defended cargo in the in Indian Ocean. Steamships became more popular after the Suez Canal was opened. 71% of British money channelled towards building railways went to regions of recent settlement e.g India. New waterways were created in India and Canada, with rivers often used as sources of exploration. -
Panic of 1873
The opening of the Suez Canal rendered many vessels stationed around the Cape redundant, as they were too large to pass through the canal. Goods remained stored in the Cape and economic stagnation, known as the Long Depression, occurred for two decades. This was characterised by heavy unemployment in the basic industries of coal, iron, steel, engineering and shipbuilding. The City of Glasgow Bank went bankrupt as railway bonds collapsed, sales and output was outsourced to the Empire -
Imperial Federation League founded
In London, promoted the reorganisation of the British Empire into a federation -
20% of Britain's imports, 33% of exports involving colonies for last 25 years
This was boosted by 'imperial preference', benefitting trade between constituent parts of the British Empire. Colonies surrendered their national sovereignty in exchange for British investment in local infrastructure e.g railways and increased borrowing power. Indigenous populations were prevented from developing manufacturing industries and often had to pay taxes to British administrators/companies. -
J.A Hobson publishes Imperialism
Claimed that imperialism was natural to nations with a capitalist economy, warranting profitable employment for public resources. -
Steel Works Association created in Germany
This German industry cartel subsidised steel exports globally. It represented the rise in power of industrial Germany, which also was expanding its navy and threatening British hegemony.