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					         UPPER MIDDLE CLASS
• Merchants made up large
  number of individuals within
  the upper middle class
   – Most successful parlayed
     their wealth into banking
• Another group within the
  upper middle class were
   – Lawyers, judges, notaries,
     teachers and doctors
      • Lacked social prestige
      • Never seemed as
        “manly” as more
        respected aristocratic
        and business vocations
     • For a long while, the upper
       middle class was content to look
       up to and emulate the
        – But as the wealth of this
          group increased, so did its
          desire for recognition
        – As commerce increased by 3-
          400%, so did profits
           • These profits emboldened
             the upper middle class to
             make it courageous
             enough to ultimately
             challenge the political and
             social position of the
• At the center of 18th century
  commercial capitalism was
  Europe’s banking centers
   – Great banking houses attracted
     the deposits of great magnates
     and the upper middle class with
     interest rates of 10%
      • Drew money from the
        countryside and
        concentrated it in major
        urban centers
      • Managed by a handful of
        important banks which
        compounded wealth of upper
        levels of society through
        government loans and
        commercial investments
• Greatest money centers were
  London and Paris
   – Great financial families of
     London were linked to the
   – Parisian banking families
     rivaled aristocracy in
     wealth and sometimes
       • Foreign bankers
         attracted to Paris        Bank of London
         because it was the
         principal market for
         government bonds
• Merchants in England and
  Holland were primarily involved
  in seaborne trade
   – Either through British East
      India Company or the Dutch
      West India Company
        • 5000 or so merchants
          controlled these companies
        • Monopolized colonial trade
• Most other merchants made their
  livings as either wholesalers or
   – Less profitable than overseas
 • Upper middle class lived
   comfortable, though rarely
    – Cultivated soberness,
      dependability, and restraint
        • Not given to free spending
          habits of the aristocracy
 • The idea that dominated their
   values was the concept of the work
    – One should work hard and avoid
      goofing off
    – Primary goal in life was
      accumulate capital by working
      hard and avoiding squandering
    – This attitude separated them in
      terms of lifestyle and outlook
      from the aristocracy
         • Emphasized education
            – Their sons flooded the
              universities of the time
         • Also put great deal of stress on
           the family
            – Idealized as a tightly knit group
              with women assuming a
              specialized role and children
              disciplined to show emotional
              restraint and to always work
         • Religion also highly valued
            – As long as it did not criticize
              the acquisition of wealth
• Upper middle class did
  sometimes buy noble titles
   – Not only for social prestige
      but also for the exemptions
      and privileges that
      accompanied these titles
• Also bought noble estates
   – But often used them as
      collateral for business loans
• Even though some members of
  the upper middle class entered
  the aristocracy through the
  purchase of titles, they almost
  always took their attitudes,
  lifestyle, and business sense
  with them
   – Were not co-opted by
      aristocracy but instead
      transformed it in their image

• French Revolution began in 1789 as an organized effort by
  the aristocracy to gain political concessions from the
   – Which had become inflexible and incompetent
• Aristocracy planned to use the Estate General to get
  concessions from the king
   – Ancient semi-representative assembly which the
     aristocracy forced the king to convene in the summer of
   – Aristocracy planned to dominate it

• Essence of the French Revolution was that the upper
  middle class gained control of the French government and
  then used this power to enact legislation which legally
  undermined the Old Regime and guaranteed the political,
  economic, and social advance of the wealthier members of
  the so-called Third Estate
   – When combined with the Reform Bill of 1832 in England
     and the Revolutions of 1830 and 1848 in southern and
     central Europe, the aristocratic dominance of Europe
     would be shattered forever
• Political victory of upper
  middle class was reinforced
  by the Industrial Revolution
   – Began in England in the
     middle of the 18th century
     and then later spread to
     the rest of the continent
   – Growth of mass
     production within the
     factory system expanded
     the wealth of the upper
     middle class, creating
     huge fortunes and
     tremendous power
       • Far greater than the
         wildest dreams of any
         great magnate
• Aristocracy refused to respond
  to the new economic
  opportunities that the Industrial
  Revolution created
   – Great magnates refused to
     invest in commerce or
       • Committed to the idea of
         inherited wealth and
         looked down their noses at
         what they called “acquired
           – Money earned through
             hard work and wise
                BIG PROBLEMS
• Inflation rate of 2% a year set in
  around 1750
   – Played havoc with relatively fixed
     incomes of aristocracy
       • Some tried market agriculture
         but this was not a good long-
         range solution
       • Others tried to extract more
         dues and labor from their
         peasants with very limited
       • Others just got deeper and
         deeper in debt and eventually
         lost their land through
           – Middle class generally
             bought these bankrupt
    • Big problem was that
      agriculture was not the answer
       – Contributed less and less to
         expanding gross national
         products of most countries
         during the Industrial
       – Wholesale price for food
         also declined from 1815 to
          • Made commercial
            agriculture progressively
            less profitable
              – Aristocratic incomes
                fell throughout Europe
• Aristocracy stripped of its legal
  privileges and protection as legal
  systems across Europe turned more
  and more towards the interests of the
  upper middle class
   – Remnants of feudalism destroyed in
     France, Prussia, Austrian Empire,
     and Russia
      • Feudal dues and fees, right to
        charge tolls, exclusive right to
        hunt, and local monopolies
      • Entail and primogeniture
      • Adoption of written constitutions
        established equality before the law
        for all people
• Aristocrats were no longer a class set
  apart and above the rest of society
            DECLINE IN POWER
• Political and social power
  of aristocracy also eroded
   – Lost former positions in
     bureaucracy, military,
     and the church
      • Did not completely
        disappear but their
        proportion was less
        and less every year
        from 1789 onwards
                    • Major reason for this decline was
                       – Growth in the size of military and
                         civilian bureaucracies
                       – Introduction of competitive
                         examinations for civil service
                          • Meant that there were not
                            enough qualified aristocrats
                            to fill all these jobs since only
                            educated men with necessary
                            technical and academic
 Lord Castlereagh           training received positions
  • Many aristocrats still held high
    positions in churches
     – But churches did not count for
       much in terms of wealth and
       power by World War I
        • due to loss of landed
          property during French
          Revolution, the separation of
          church and state, and the
          growth of secular public
  • Domination of the Church by the
    aristocracy was useless because
    the Church did not count for much
• Deprived of its legal privileges, rapidly losing its
  monopoly on government service, and stubbornly
  clinging to sources of income that were
  increasingly inadequate, the aristocracy declined
  in terms of political, social, and economic power
  as the 19th century wore on
• Whatever vestiges of influence and prestige that
  they still possessed, came to an end on the
  battlefields of World War I
   – World War I delivered a coup de grâce to a
     social group that had been dying a lingering and
     painful death for over a century
              A NEW AGE
• Wealth and achievement replaced titles as
  the most distinguishing features of the new
  upper middle class elite
• Many of the upper middle class came from
  families who had gained their wealth in
  commerce and banking in the 18th century
   – But it was the rising group of new
     industrial entrepreneurs who personified
     the new age of the 19th century
      • New industrialists and inventors
        became symbolic of progress and the
        new European royalty
• Entrepreneurs possessed
  managerial ability
   – Indispensable for the large
     scale producton and complex
     financing of industry
• Production grew to a scale never
  seen before
   – More raw materials were need,
     the various stages of
     production needed to be
     integrated under a single
     factory roof, and labor had to
     be recruited and disciplined
       • This made managers vital to
         the success of industry
                 “NEW MEN”
• In order for the Industrial Revolution to succeed,
  men had to be willing to invest in the new
   – Most industrial projects required a fairly large
     investment of money
   – Those individuals who were willing to do this
     were known as entrepreneurs
      • They were the ones willing to finance large
        scale industry and its associated activities
      • If successful, they could amass tremendous
        fortunes and wield tremendous power
     • Father had been a successful
       cloth merchant in the late 18th
        – Marshall parlayed this
          small nest egg into a vast
          fortune by investing
          heavily in the
          mechanization of the
          textile industry
        – Opened a production site
          near Leeds but first
          attempts to mechanize the
          manufacture of lace at this
          factory failed
• Linked up with a young
  mechanic named Matthew
  Murray who invented a flax-
  cording machine
   – Paved the way for the near
     complete mechanization of
     Marshall’s factory
• By early 19th century, Marshall
  had a number of factories,
  over 1000 workers, and was a
   – Yet he always was looking
                                    Matthew Murray
     for new and better ways to
     improve production
     through the implementation
     of machines
    • Did his own inventing
       – Invented insulated wire and the
         electrical dynamo
    • Established factory to make
      telegraph equipment in 1847
       – By the 1860s, he monopolized
         the sale of telegraphic
         equipment in Russia and had a
         major share of this market in
         virtually every country in
• Began to manufacture
  electrical cable when demand
  for that product began to rise
   – Rapidly came to dominate
     this growing market
• His inventiveness never
  slacked off
   – As an old man he invented
     the electric elevator in 1880
     and helped set up the first
     electric streetcar in Berlin
     in 1881
• Through the efforts of
  propagandists like Samuel Smiles,
  men like Marshall and Siemens
  inspired the creation of a new
  entrepreneurial creed
   – Men who worked as hard as the
     great entrepreneurs could
     become just as successful
   – Wealth and prominence were
     within the reach of anyone who
     adopted the upper middle class
     values of thrift, hard work, and
     self discipline
   – Anyone could succeed if they
     practiced “diligent self-culture,    Samuel Smiles
     self-discipline, and self control”
• During the early days of the
  Industrial Revolution, the
  concept of management was
  closely linked to ownership
   – Mainly because so much of
      industry began as family
      enterprises or as
• It was only when the smaller
  company gave way to the large
  corporation that a separate and
  distinct class of industrial
  managers began to emerge
   – Example is Imperial Chemical
      Industries of England
       • Started as Brunner and
         Mond, a small partnership
         between John Brunner and
         Ludwig Mond

• At first, day-to-day administration of company was
  performed by the two partners themselves
   – But as their business grew, they assigned some
     managerial tasks in research and development to
     various scientists and engineers
   – By the 1890s, the owners delegated various
     administrative functions to lawyers and accountants
   – By the time the founders retired, the day-to-day
     operation of the company was entirely in the hands of
     well paid professional managers
• Decline of monarchy was a fact
  of life in 19th century Europe
   – German, Austrian, and
     Russian monarchies all
     collapsed in 1918
       • French monarchy had
         already disappeared by
         this time
       • English and Italian
         monarchies had been
         transformed into
         figurehead institutions
• Power increasingly shifted to
  national parliaments
   – Especially the lower houses
     of these assemblies
   – French Chamber of Deputies
     fell to control of upper
     middle class by the 1820s
   – English House of Commons
     taken over by upper middle
     class in the 1840s
   – Italian Chamber of Deputies,
     Austrian House of
     Representatives, and the
     German Reichstag were all
     created between 1861 and
     1871                           House of Commons

       • Upper middle class
         gradually got the upper
         hand in these assemblies

• Middle class character of government was created and
  preserved by means of the limited franchise
   – Masses did not get right to vote in France until 1848; in
     England until 1867; in Germany until 1871; in Austrian
     Empire until 1907; and in Italy until 1912
   – Prior to these dates, the right to vote was restricted by a
     property qualification or an educational standard
      • Qualifications and standards that only the upper
        middle class could generally meet
• Active participation in politics
  tended to fall to the professions
   – Who were allied with the
     interests of the upper middle
     class and reflected its attitudes
   – Passed the legislation which
     created the middle class
     dominated society of the 19th
• Growth of national bureaucracies
  represented another area of
  penetration of upper middle class
  and its allies
   – Implementation of civil service
     tests also reduced hold of
     aristocracy and put them under      Victor Adler
     control of middle class
• Upper middle class moved into positions of power
  during the 19th century
   – Using old and new wealth, accumulated capital,
     and talent, it took over society and further
     enriched itself in the process
   – Replaced the aristocracy by taking over key
     institutions with which it maintained its power
• Upper middle class control of capital, investment,
  and business gave it a commanding position
   – So did its ability to control new legislative
     assemblies and growing bureaucracies
• Its main ally was the new professional element in
                       CRITICS I
• The first to notice the change in
  elites were artists and intellectuals
   – Many saw the passing of
      aristocratic society as a loss
       • Criticized new bourgeoisie
         and its doctrines of
         acquisition and personal
       • Romanticized the past in
         order to contrast it more
         sharply with the new
         industrial era
       • Criticism was heavy and the
         atmosphere was pessimistic
                                          Honoré de Balzac
 • Stendahl and Honoré de Balzac
   were convinced that middle class
   morality, with its stress on
   emotional restraint for the sake of
   economic success, was
   destructive of the human
 • Thomas Carlyle declared that
   materialistic doctrines were
   creating a psychological disease
   that could only be described as
   “social gangrene”
    – Never mentioned poverty,
      injustice, and inequality of the
      era of kings and aristocrats
                   • Sir Walter Scott transformed
                     society’s image of the knight from
                     a crude and bloodthirsty warrior to
                     that of a gentle and compassionate
                   • William Wordsworth glorified
                     nobles and peasants and the
                     agricultural society they lived in
                   • Percy Shelley saw modern
                     industrial society as the cause of
                     massive poverty
                   • Richard Wagner used his music to
                     glorify the preindustrial past and
Sir Walter Scott     extol the virtues of the aristocracy
              THE REALISTS
• Post-1850 writers just
  as critical of bourgeois
  society as the
   – Charles Dickens,
     Gustave Flaubert,
     Victor Hugo, and
     Chernychevsky all
     found this society
     wanting in the area
     of human values

                             Charles Dickens
• Andrew Ure was one of
  England’s the most
  popular writers of the
   – Glorified the uplifting
     character of
     industrial society
   – Declared that the city
     was better off than
     the countryside
   – Defended the new
     upper middle class
     as possessing “a
     noble spirit of
     industry, enterprise,
     and intelligence”
• Both critics and apologists of modern
  industrial society had a point
   – Triumph of the upper middle class was an
     improvement over the stagnant, grossly
     unjust system that prevailed before 1789
   – Industrial system that the upper middle
     class created and directed did ultimately
     raise the general standard of living for all
• Critics were correct when they warned of the
  psychological and social dangers of
  excessive materialism
   – And also when they argued the masses
     were just as deserving as the upper middle
     class of a decent standard of living, a
     decent level of education, a decent amount
     of personal freedom, and a decent level of
     economic security

• Conservative critics of bourgeois society
  wanted to return to a mythological past while
  bourgeois apologists thought that society
  could not get any better
              THIRD OPTION
• Did not involve a return
  to an aristocratic past
  nor the maintenance of
  the status quo

• Socialists argued it was
  possible and desirable
  to transform society
  into something entirely
   – Based on their belief
     in the creative and
     destructive potential
     of the so-called
     “lower classes”

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