Before the 18th century where the Industrial Revolution was not yet set in motion, people of Western Europe lived hard yet simple lives. Families took residence in small rural areas and lived their lives as farmers, growing crops for themselves and their livestocks. Since everything was still created by hand, everyday necessities such as clothes, furniture and tools took an abundance amount of time to create. This meant that families would have to craft their own necessities which translates into very little trade and no economic circulation. Coin was of course still valuable but didn’t weigh as much as today because there wasn’t enough handcrafted products to trade. This lifestyle changed when the Industrial Revolution took place. The revolution was the transition from making everything by hand to machines. Having everyday needs produced faster and easier on a massive scale quickly drew people to migrate to cities and look for jobs in factories. …show more content…
This changed the way people lived, from rural farmers to city factory workers and the standard of living was raised. Now that people lived in highly concentrated cities and actually had products to buy, the idea of businesses took place. A business is the process of providing product or service to someone in exchange of money. Since everybody had this idea, the economy eventually adopt the “Laissez Faire” policy which means no interference from the government or free enterprise. The adopting of this policy is significant because it allowed owners to run their business however they envisioned it. As good as it sounds, this made competition a prime factor in how business operated. This economic system is called