Manchester capitalism
Encyclopedia
Manchester Capitalism
, Manchester School, Manchester Liberalism, and Manchesterism are terms for the political, economic, and social movements of the 19th century that originated in Manchester
, England.
Manchester was the hub of the world’s textile manufacturing industry, and had a high population of factory workers, who were disadvantaged by the Corn Laws
, the protectionist
policy that imposed tariffs on imported wheat and increased the price of food. The Corn Laws were supported by the land-owning aristocracy, because by reducing foreign competition they allowed landowners to keep grain prices high and therefore, as the population expanded, increase agricultural profits.
However, the operation of the Corn Laws also meant that the factory workers in the textile mills in the textile cities of northern England were faced with higher food bills; consequently the mill owners in turn suffered higher wage bills and therefore higher finished-goods prices which restricted their foreign trade competitiveness.
Manchester became the headquarters of the Anti-Corn Law League
from 1839. The League campaigned against the Corn Laws to reduce food prices and increase the competitiveness of manufactured goods abroad, and Manchester Liberalism grew out of this movement.
Manchester Capitalism is regarded as a challenge to the dominant economic system in 16th–18th century Europe: mercantilism
.
Mercantilism holds that a country’s prosperity is dependent on large exports, but limited imports of goods. At the beginning of the 19th century, trade in Britain was still subject to import quotas, price ceilings and other state interventions. This led to shortages of certain goods and, in particular, corn (grains usually requiring grinding, most often but not always wheat) on British markets.
The Manchester Liberals argued that free trade would lead to a more equitable society, making essential products available to all.
Theoretically, Manchester Liberalism was founded on the writings of David Hume
, Adam Smith
and Jean-Baptiste Say
.
The great champions of the "Manchester School" were Richard Cobden
and John Bright
. As well as being advocates of free trade
they were radical opponents of war and imperialism and proponents of peaceful relations between peoples. Manchesterism can therefore be seen as a belief in free and consensual relations amongst individuals and groups at all levels. Cobden's efforts in furtherance of free trade were always subordinate to what he deemed the highest moral purpose: the promotion of peace on earth and goodwill among men.
In March 1848 Benjamin Disraeli, a Conservative, first used the term "the School of Manchester". According to historian Ralph Raico
, and as indicated by the German liberal Julius Faucher
in 1870, the term "Manchesterism" was invented by Ferdinand Lassalle
, the founder of German socialism and was meant as an abusive term. Similarly Benjamin Tucker
in the United States was reproached as merely a "consistent Manchester man" for his individualist anarchism
but instead wore that label as a badge of honor.
Capitalism
Capitalism is an economic system that became dominant in the Western world following the demise of feudalism. There is no consensus on the precise definition nor on how the term should be used as a historical category...
, Manchester School, Manchester Liberalism, and Manchesterism are terms for the political, economic, and social movements of the 19th century that originated in Manchester
Manchester
Manchester is a city and metropolitan borough in Greater Manchester, England. According to the Office for National Statistics, the 2010 mid-year population estimate for Manchester was 498,800. Manchester lies within one of the UK's largest metropolitan areas, the metropolitan county of Greater...
, England.
Manchester was the hub of the world’s textile manufacturing industry, and had a high population of factory workers, who were disadvantaged by the Corn Laws
Corn Laws
The Corn Laws were trade barriers designed to protect cereal producers in the United Kingdom of Great Britain and Ireland against competition from less expensive foreign imports between 1815 and 1846. The barriers were introduced by the Importation Act 1815 and repealed by the Importation Act 1846...
, the protectionist
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...
policy that imposed tariffs on imported wheat and increased the price of food. The Corn Laws were supported by the land-owning aristocracy, because by reducing foreign competition they allowed landowners to keep grain prices high and therefore, as the population expanded, increase agricultural profits.
However, the operation of the Corn Laws also meant that the factory workers in the textile mills in the textile cities of northern England were faced with higher food bills; consequently the mill owners in turn suffered higher wage bills and therefore higher finished-goods prices which restricted their foreign trade competitiveness.
Manchester became the headquarters of the Anti-Corn Law League
Anti-Corn Law League
The Anti-Corn Law League was in effect the resumption of the Anti-Corn Law Association, which had been created in London in 1836 but did not obtain widespread popularity. The Anti-Corn Law League was founded in Manchester in 1838...
from 1839. The League campaigned against the Corn Laws to reduce food prices and increase the competitiveness of manufactured goods abroad, and Manchester Liberalism grew out of this movement.
Manchester Capitalism is regarded as a challenge to the dominant economic system in 16th–18th century Europe: mercantilism
Mercantilism
Mercantilism is the economic doctrine in which government control of foreign trade is of paramount importance for ensuring the prosperity and security of the state. In particular, it demands a positive balance of trade. Mercantilism dominated Western European economic policy and discourse from...
.
Mercantilism holds that a country’s prosperity is dependent on large exports, but limited imports of goods. At the beginning of the 19th century, trade in Britain was still subject to import quotas, price ceilings and other state interventions. This led to shortages of certain goods and, in particular, corn (grains usually requiring grinding, most often but not always wheat) on British markets.
The Manchester Liberals argued that free trade would lead to a more equitable society, making essential products available to all.
Theoretically, Manchester Liberalism was founded on the writings of David Hume
David Hume
David Hume was a Scottish philosopher, historian, economist, and essayist, known especially for his philosophical empiricism and skepticism. He was one of the most important figures in the history of Western philosophy and the Scottish Enlightenment...
, Adam Smith
Adam Smith
Adam Smith was a Scottish social philosopher and a pioneer of political economy. One of the key figures of the Scottish Enlightenment, Smith is the author of The Theory of Moral Sentiments and An Inquiry into the Nature and Causes of the Wealth of Nations...
and Jean-Baptiste Say
Jean-Baptiste Say
Jean-Baptiste Say was a French economist and businessman. He had classically liberal views and argued in favor of competition, free trade, and lifting restraints on business...
.
The great champions of the "Manchester School" were Richard Cobden
Richard Cobden
Richard Cobden was a British manufacturer and Radical and Liberal statesman, associated with John Bright in the formation of the Anti-Corn Law League as well as with the Cobden-Chevalier Treaty...
and John Bright
John Bright
John Bright , Quaker, was a British Radical and Liberal statesman, associated with Richard Cobden in the formation of the Anti-Corn Law League. He was one of the greatest orators of his generation, and a strong critic of British foreign policy...
. As well as being advocates of free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
they were radical opponents of war and imperialism and proponents of peaceful relations between peoples. Manchesterism can therefore be seen as a belief in free and consensual relations amongst individuals and groups at all levels. Cobden's efforts in furtherance of free trade were always subordinate to what he deemed the highest moral purpose: the promotion of peace on earth and goodwill among men.
In March 1848 Benjamin Disraeli, a Conservative, first used the term "the School of Manchester". According to historian Ralph Raico
Ralph Raico
Ralph Raico is an American historian, libertarian, and specialist in European classical liberalism and Austrian Economics. He is currently a professor of history at Buffalo State College and a senior faculty member at the Ludwig von Mises Institute. Raico was a student of Ludwig von Mises and...
, and as indicated by the German liberal Julius Faucher
Julius Faucher
Julius Faucher was a German journalist and a significant advocate of Liberalism and Free Trade...
in 1870, the term "Manchesterism" was invented by Ferdinand Lassalle
Ferdinand Lassalle
Ferdinand Lassalle was a German-Jewish jurist and socialist political activist.-Early life:Ferdinand Lassalle was born on 11 April 1825 in Breslau , Silesia to a prosperous Jewish family descending from Upper Silesian Loslau...
, the founder of German socialism and was meant as an abusive term. Similarly Benjamin Tucker
Benjamin Tucker
Benjamin Ricketson Tucker was a proponent of American individualist anarchism in the 19th century, and editor and publisher of the individualist anarchist periodical Liberty.-Summary:Tucker says that he became an anarchist at the age of 18...
in the United States was reproached as merely a "consistent Manchester man" for his individualist anarchism
Individualist anarchism
Individualist anarchism refers to several traditions of thought within the anarchist movement that emphasize the individual and his or her will over external determinants such as groups, society, traditions, and ideological systems. Individualist anarchism is not a single philosophy but refers to a...
but instead wore that label as a badge of honor.
See also
- Richard CobdenRichard CobdenRichard Cobden was a British manufacturer and Radical and Liberal statesman, associated with John Bright in the formation of the Anti-Corn Law League as well as with the Cobden-Chevalier Treaty...
- John BrightJohn BrightJohn Bright , Quaker, was a British Radical and Liberal statesman, associated with Richard Cobden in the formation of the Anti-Corn Law League. He was one of the greatest orators of his generation, and a strong critic of British foreign policy...
- British Whig PartyBritish Whig PartyThe Whigs were a party in the Parliament of England, Parliament of Great Britain, and Parliament of the United Kingdom, who contested power with the rival Tories from the 1680s to the 1850s. The Whigs' origin lay in constitutional monarchism and opposition to absolute rule...
- Corn LawsCorn LawsThe Corn Laws were trade barriers designed to protect cereal producers in the United Kingdom of Great Britain and Ireland against competition from less expensive foreign imports between 1815 and 1846. The barriers were introduced by the Importation Act 1815 and repealed by the Importation Act 1846...
- Michel ChevalierMichel ChevalierMichel Chevalier was a French engineer, statesman, economist and free market liberal.-Biography:Born in Limoges, Haute-Vienne, Chevalier studied at the École Polytechnique, obtaining an engineering degree at the Paris École des mines in 1829.In 1830, after the July Revolution, he became a...
- Thomas ThomassonThomas ThomassonThomas Thomasson was a political economist and a campaigner for the repeal of the Corn Laws who was one of Bolton's greatest benefactors....
- Birmingham SchoolBirmingham School (economics)The Birmingham School was a school of economic thought that emerged in Birmingham, England during the Post-Napoleonic depression that affected England following the end of the Napoleonic wars in 1815....
, other contemporary school associated with British industrial capitalism
External links
- The Manchester School of Economics (1960) by William Dyer Grampp.