Changes in Standards of Living

Due to increased automation, the use of interchangeable parts, the division and specialization of labor, and the assembly line, the efficiency of industrial production increased. This efficiency led to greater output, especially of such consumer goods as textiles, home furnishings, clothing, and porcelain. As the supply of consumer goods increased, the availability of goods rose and the prices fell. In addition, increased global industrial production led to greater competition and variety of both consumer and capital goods. For some people, standards of living improved with the proliferation of consumer goods.

One way economists measure standard of living is by tracing patterns in real wages—those adjusted for inflation. Real wages signify the amount of goods or services that can be bought. In the early years of the Industrial Revolution, some studies show that real wages grew slowly, but after 1819 the pace of growth accelerated, and between 1819 and 1852 they doubled. The growth of real wages paralleled the rise in consumption. By these measures, standards of living increased for people of all income groups.

At the same time, however, the distribution of income (the wealth gap) became more pronounced. Additionally, some of the rise in income was offset by the growing problems in an industrialized society—pollution, crowded cities, and the costs of wars. With these taken into consideration, standards of living may not have risen for many people.