What major economic theory emerged from the Industrial Revolution?

The major economic theory that emerged from the Industrial Revolution is capitalism. This economic system is characterized by private ownership of the means of production, the creation of goods and services for profit, and a market-driven economy that operates largely based on supply and demand. During the Industrial Revolution, rapid advancements in technology and manufacturing processes led to the establishment of factories, which greatly increased production capacities and efficiency.

As a result, capital accumulation became a driving force, where individuals or businesses could invest capital to generate more wealth. The shift from agrarian economies to industrial ones fostered an environment where innovation flourished, leading to the rise of entrepreneurship and competitive markets.

While socialism and communism also gained traction as responses to the inequalities and challenges posed by capitalism, they were not the foundational economic theories that emerged directly from the Industrial Revolution itself. Similarly, feudalism was largely replaced by these new economic structures as societies transformed and modernized. Thus, capitalism is recognized as the dominant economic theory that shaped the modern world during and after the Industrial Revolution.