The Age of Capital, 1848–1875

1. The Global Triumph of Capitalism

For the global triumph of capitalism is the major theme of history in the decades after 1848.

Unprecedented expansion. The period from 1848 to the early 1870s witnessed an extraordinary economic boom, laying the foundation for a truly global industrial economy. This era, aptly named "The Age of Capital," saw the world embrace competitive private enterprise as the engine of growth, promising material plenty, enlightenment, and continuous progress. The sheer scale of this expansion was staggering, with British exports, for instance, doubling in the 1850s alone, and global trade increasing by 260% between 1850 and 1870.

Drivers of growth. Several factors fueled this boom. The railway, a "crowning achievement" of the early industrial economy, dramatically expanded markets and facilitated the movement of goods, capital, and people across continents. Gold discoveries in California and Australia after 1848 injected liquidity into the world economy, lowering interest rates and encouraging investment, while also stimulating economic activity in new regions. Crucially, the widespread adoption of economic liberalism, dismantling barriers to free trade and enterprise, further accelerated this growth.

Political stability. This economic prosperity provided invaluable breathing space for European governments, allowing them to recover from the 1848 revolutions and manage social discontent through employment and migration rather than facing renewed revolutionary threats. The era saw a systematic liberalization of economic policies across Europe, even in restored absolute monarchies, as the perceived inevitability and benefits of capitalist development became undeniable. This period of calm, however, was merely an interlude before new political and economic challenges emerged.

2. The End of Revolutionary Hopes

Eighteen forty-eight, the famous ‘springtime of peoples’, was the first and last European revolution in the (almost) literal sense, the momentary realization of the dreams of the left, the nightmares of the right, the virtually simultaneous overthrow of old regimes over the bulk of continental Europe west of the Russian and Turkish empires, from Copenhagen to Palermo, from Brasov to Barcelona. It failed, universally, rapidly and – though this was not realized for several years by the political refugees – definitively.

Widespread failure. The 1848 revolutions, a continent-wide explosion of liberal, democratic, and nationalist aspirations, failed almost universally and rapidly. Within six months, their defeat was predictable, and within eighteen months, most old regimes were restored. This marked a definitive end to the kind of general social revolution envisioned before 1848 in advanced countries, shifting the center of gravity for such movements to marginal and backward regions.

Bourgeois fear. The primary reason for this failure was the fear of social revolution among the moderate liberals whom the initial uprisings propelled into power. Confronted by the demands of the "labouring poor" and the specter of "red" revolution, the bourgeoisie quickly prioritized order over their full political program, often aligning with conservative forces. This dynamic was starkly illustrated by the brutal suppression of the Parisian workers' June insurrection.

Lasting impact. Despite their immediate failure, the 1848 revolutions were not without consequence. They marked the end of traditional politics, forcing conservative forces to adapt to the new realities of mass participation and public opinion. The middle classes learned that some of their economic demands could be met without revolution, while the working classes, though defeated, gained invaluable experience and a clearer understanding of their distinct class interests, foreshadowed by the enduring influence of the Communist Manifesto.

3. A World Unified by Technology

The entire globe became part of this economy. This creation of a single expanded world is probably the most significant development of our period.

Unprecedented connectivity. The mid-19th century witnessed a revolutionary integration of the world into a single, interconnected capitalist economy, primarily driven by advancements in communication and transportation. This era saw the dramatic expansion of railways, steamships, and the electric telegraph, shrinking distances and accelerating the flow of goods, capital, and information. The possibility of circumnavigating the globe in eighty days, as chronicled by Jules Verne, symbolized this new reality.

Global infrastructure. Railways, in particular, transformed land transport, with mileage expanding dramatically across Europe, the United States, and even in parts of Asia, Africa, and Latin America, often linking resource-rich interiors to ports for export. Steamships, though initially competing with sailing vessels, steadily gained dominance, especially in British mercantile marine, facilitating massive international trade. The electric telegraph, a scientific marvel, provided instantaneous communication, transforming news dissemination and government administration across vast distances.

Economic repercussions. This technological unification had profound economic effects, creating new markets "out of nothing" and intensifying global interdependence. The California gold rush, for instance, had immediate and far-reaching impacts on distant economies, demonstrating how localized events could trigger worldwide economic shifts. This era laid the groundwork for a truly globalized economy, where events in one corner of the world could swiftly reverberate across all others.

4. Nation-States Forged in Blood and Iron

The politics of rulers in the 1860s were therefore shaped by three considerations. First, they found themselves in a situation of economic and political change which they could not control, but to which they had to adapt. The only choice – and statesmen recognized this clearly – was whether to sail before the wind or use their skill as sailors to steer their ships into another direction. The wind itself was a fact of nature. Second, they had to determine what concessions to the new forces could be made without threatening the social system, or in special cases the political structures, to whose defence they were committed, and the point beyond which they could not safely go. But thirdly, they were fortunate to be able to make both kinds of decisions under circumstances which permitted them a considerable initiative, scope for manipulation and in some cases actually left them virtually free to control the course of events.

Resurgence of political problems. After the temporary calm of the 1850s, the political problems unresolved by the 1848 revolutions resurfaced, particularly the demands for national unification and constitutional reform. Unlike 1848, these movements were now often managed from above by astute statesmen who understood how to harness popular forces for their own ends without risking social revolution.

Wars of unification. The 1860s became an era of wars, notably those leading to the unification of Italy and Germany. Figures like Cavour in Piedmont and Bismarck in Prussia skillfully used military force and diplomacy to achieve national unity, often by excluding democratic and revolutionary elements.

• Italy: Unified under the Kingdom of Savoy, largely through French military aid against Austria and Garibaldi's popular campaigns.
• Germany: Unified under Prussian leadership by Bismarck, through decisive wars against Denmark (1864), Austria (1866), and France (1870-71), deliberately excluding Austria from the new German Empire.

Shifting power balance. These conflicts fundamentally altered the European power system. Russia's decline was evident after the Crimean War, and France's after the Franco-Prussian War. Germany emerged as the new dominant force, combining industrial strength with a large population. This period laid the foundation for a new era of global power-conflict, though its full implications would only become apparent later.

5. The Bourgeoisie: Masters of a Contradictory World

The bourgeois was not merely independent, a man to whom no one (save the state or God) gave orders, but one who gave orders himself. He was not merely an employer, entrepreneur or capitalist but socially a ‘master’, a ‘lord’ (Fabrikherr), a ‘patron’ or ‘chef’.

Material and moral contradictions. The triumphant bourgeoisie of this era lived in a world of stark contradictions. Their homes, overflowing with elaborate and solid objects, symbolized both wealth and a desperate attempt to create an illusion of harmonious, hierarchical happiness, distinct from the competitive outside world. This material accumulation was often justified by an ethic of hard work and self-help, yet the reality of lavish spending and inherited wealth increasingly challenged these puritanical ideals.

Hypocrisy and social control. A pervasive hypocrisy, particularly regarding sexuality, marked bourgeois society. While official morality preached restraint and fidelity for both sexes, a dual standard often prevailed for men, who pursued extramarital affairs while expecting purity from their wives. This moral rigidity, however, also served as a tool for social control, defining "respectability" and distinguishing the middle classes from the "unrespectable" poor.

Hegemony, not direct rule. Though rarely holding direct political power in the highest echelons, the bourgeoisie exerted immense hegemony, shaping policy and setting the agenda for economic development. Their belief in capitalism, competitive private enterprise, science, and progress became the dominant ideology. They were "masters" in their businesses and homes, embodying a new form of authority based on wealth and individual achievement, which they often rationalized through theories of biological or racial superiority.

6. The Rise of the Working Class and Socialism

The International, founded in London and rapidly taken into the capable hands of Karl Marx, began as a curious combination of insular and liberal–radical British trade-union leaders, ideologically mixed but rather more left-wing French union militants, and a shadowy general staff of old continental revolutionaries of increasingly assorted and incompatible views.

Re-emergence of labor. After the suppression of 1848 and the economic boom of the 1850s, the working class re-emerged as a significant political and industrial force in the 1860s. This revival was marked by the growth of trade unions, despite legal prohibitions in many countries, and a surge in labor unrest and strikes across Europe. The formation of the International Workingmen's Association (First International) in 1864, under Karl Marx's influence, symbolized this international solidarity.

Socialist identity. The International, though ideologically diverse, played a crucial role in fostering independent working-class movements and linking them with socialist ideas. While Marx's direct followers were few, his theories gained traction, particularly in Germany, where the General German Workers Association (Lassallean) and later the Social Democratic Party (Marxist) emerged as pioneering mass socialist parties. This marked a decisive shift from liberal-radical democracy to distinct socialist political action.

The Paris Commune. The Paris Commune of 1871, a brief but heroic workers' insurrection, became a powerful symbol of proletarian revolution, despite its rapid and brutal suppression. It terrified European governments, leading to a "counter-International" of conservative powers, and solidified the fear of socialist revolution. Though Marx himself was cautious about its prospects, the Commune's legacy profoundly influenced future revolutionary movements, demonstrating the potential for workers to seize power, however fleetingly.

7. The Victims of Western Expansion

The greater part of the world’s population therefore became the victims of those whose superiority, economic, technological and therefore military, was unquestioned and seemed unchallengeable: the economies and states of north-western and central Europe and the countries settled by its emigrants abroad, notably the United States.

Helpless subordination. The vast majority of the non-European world found itself at the mercy of Western capitalist expansion, unable to determine its own fate. While few regions became formal colonies in this period, their economic and military inferiority rendered them politically dependent. The gunboat and expeditionary force, though not always decisive in direct conquest, were powerful tools for imposing Western will.

Disruptive modernization. Nominally independent states and empires, such as those in Latin America, the Ottoman Empire, and China, faced the dilemma of how to respond to Western impact. Attempts at "westernization" or modernization, often driven by local elites, frequently led to further economic dependence and internal disruption.

• Latin America: Liberal reforms aimed at modernization often strengthened landlords and foreign economic interests, failing to create independent capitalist development.
• Egypt: Integrated into the European economy as an agricultural supplier (especially cotton), its Khedive's ambitious modernization projects led to massive foreign debt and eventual British control.
• China: The Taiping Rebellion (1850-1866), a massive social revolution partly triggered by Western incursions, further weakened the Qing dynasty, forcing it into greater dependence on foreign powers to suppress internal unrest.

Poverty and famine. The most stark contrast between the developed and underdeveloped worlds remained the prevalence of poverty and famine in the latter. While Western Europe saw improvements, millions in India, China, and Persia perished from hunger and disease, highlighting the devastating human cost of uneven global development. The "gains" of Western influence—railways, telegraphs, new elites—were often overshadowed by the profound disruption of traditional ways of life.

8. The Non-European Winners: America and Japan

Of all the non-European countries only one actually succeeded in meeting and beating the west at its own game. This was Japan, somewhat to the surprise of contemporaries.

American ascendancy. The United States, though not yet a major player in European diplomacy, rapidly emerged as a global economic powerhouse. Its territorial expansion, fueled by the Mexican-American War and the opening of the West, created a vast internal market. The Civil War (1861-1865), a triumph of the industrialized North over the agrarian South, solidified American capitalism and continental unity, despite the enduring racial inequalities.

Robber barons and rapid growth. Post-Civil War America saw dramatic economic growth, driven by "robber barons" like Vanderbilt and Rockefeller, who, despite their ruthless methods, contributed to industrialization. This era was characterized by:

• Minimal government control over business.
• Spectacular corruption.
• A focus on maximizing profits across various sectors, especially railroads.
• The rise of "self-made men" and the ideology of Social Darwinism.

Japan's "revolution from above". Japan, uniquely, successfully adapted to Western power by undertaking a radical, controlled "westernization" known as the Meiji Restoration (1868). Recognizing the futility of direct resistance, a young samurai elite abolished feudalism, centralized the state, and rapidly adopted Western technology, institutions, and ideas. This transformation, though traumatic, allowed Japan to become a formidable modern power, demonstrating that non-European nations could "beat the West at its own game."

9. Mass Migration and Urban Transformation

The middle of the nineteenth century marks the beginning of the greatest migration of peoples in history.

Unprecedented scale. The period witnessed an unparalleled movement of people, with over 9 million Europeans migrating overseas (mostly to the United States) between 1846 and 1875, a dramatic increase from previous decades. This mass uprooting was driven primarily by economic hardship and the promise of better opportunities abroad, though political and religious factors also played a role.

Global demographic shifts. While Europeans formed the bulk of international migrants, Chinese and Indian populations also began to move, often as indentured laborers, filling the void left by the abolition of the slave trade. Within Europe, there was a massive rural exodus towards rapidly growing cities and industrial centers, transforming demographics and creating new urban landscapes.

Challenges of integration. Immigrants, whether internal or international, faced significant challenges in their new environments. They often clustered in self-imposed ghettos, relying on their countrymen for support and maintaining cultural ties to their homelands. While some achieved modest success, many faced insecurity, exploitation, and xenophobia, highlighting the social costs of rapid urbanization and industrialization.

10. Science as the New Secular Ideology

Educated men of this period were not merely proud of their sciences, but prepared to subordinate all other forms of intellectual activity to them.

Dominance of science. Science became the preeminent intellectual activity, overshadowing philosophy and theology. Educated men were confident in its methods and achievements, believing it offered definitive answers and represented the final stage of human intellectual progress. This era saw significant advances across all natural sciences, particularly in chemistry and biology.

Evolutionary triumph. Charles Darwin's theory of evolution by natural selection (1859) was the most significant scientific breakthrough, extending the concept of historical change to living organisms, including humans. It provided a powerful, albeit controversial, explanatory model that resonated with the era's belief in progress and competition. Darwinism challenged traditional religious views of creation and the special status of man, leading to intense ideological debates.

Rise of social sciences. The need for a scientific understanding of society led to the rapid emergence of disciplines like sociology and anthropology. These fields, often influenced by evolutionary and comparative methods, sought to explain social structures and human differences, sometimes leading to problematic theories of racial hierarchy and "Social Darwinism" that justified existing inequalities.

11. The Arts: Prosperity Amidst Aesthetic Crisis

The triumph of bourgeois society seemed congenial to science, it was much less so to the arts.

Prosperity and patronage. The bourgeois era saw unprecedented spending on the arts by governments, public institutions, and the burgeoning middle class. Grand public buildings, museums, and opera houses proliferated, symbolizing civic pride and cultural aspiration. Artists who appealed to this market, like Dickens and Verdi, achieved immense fame and financial success, indicating a new integration of art with commercial viability.

Technological impact. The advent of photography in the 1850s profoundly impacted the visual arts, challenging the traditional role of representational painting. While some artists resisted it as an industrial intrusion, others, like the Impressionists, embraced its scientific approach to capturing reality, leading to radical innovations in technique and style. This period also saw the rise of cheap mass reproduction of art and literature, making culture accessible to a wider public.

Aesthetic dilemmas. Despite prosperity, the arts faced an aesthetic crisis. Eclecticism dominated architecture, reflecting a lack of a unified style. "Realism" in literature and painting struggled with the dilemma of representing an often unpleasant reality while also fulfilling bourgeois ideals of beauty and progress. This tension, coupled with the rise of mass culture and the increasing specialization of artistic fields, led to a bifurcation between popular and avant-garde art, foreshadowing the artistic fragmentation of the 20th century.

Last updated: December 24, 2025