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 in human economy. From the dawn of history the manufacturer and craftsman had been, as we have said, a sort of middle-class townsman. The machine and the employer now superseded his skill, and he either became an employer of his fellows, and grew towards wealth and equality with the other rich classes, or he remained a worker and sank very rapidly to the level of a mere labourer. This great change in human affairs is known as the Industrial Revolution. Beginning in Great Britain, it spread during the nineteenth century throughout the world.

As the Industrial Revolution went on, a great gulf opened between employer and employed. In the past every manufacturing worker had the hope of becoming an independent master. Even the slave craftsmen of Babylon and Rome were protected by laws that enabled them to save and buy their freedom and to set up for themselves. But now a factory and its engines and machines became a vast and costly thing, measured by the scale of the worker's pocket. Wealthy men had to come together to create an enterprise; credit and plant, that is to say, "Capital," were required. "Setting up for oneself" ceased to be a normal hope for an artisan. The worker was henceforth a worker from the cradle to the grave. Besides the landlords and merchants and the money-dealers who financed trading companies and lent their money to the merchants and the state, there arose now this new wealth of industrial capital—a new sort of power in the state.

Of the working out of these beginnings we shall tell later. The immediate effect of the industrial revolution upon the countries to which it came was to cause a vast, distressful shifting and stirring of the mute, uneducated, leaderless, and now more and more propertyless common population. The small cultivators and peasants, ruined and dislodged by the Enclosure Acts, drifted towards the new manufacturing regions, and there they joined the families of the impoverished and degraded craftsmen in the factories. Great towns of squalid houses came into existence. Nobody seems to have noted clearly what was going on at the time. It is the keynote of "private enterprise" to mind one's own business, secure the utmost profit, and disregard any other consequences. Ugly great factories grew up, built as cheaply as possible, to hold as many machines and workers as possible. Around