How did capitalism lead to industrialization?

Answer 1

This is an interesting question in that the terms industrialization and capitalism are in reverse order. Here is the explanation.

It was capitalism that fueled industrilization, not the reverse.

During the industrial revolution that occurred in Europe and the USA, the governments' "hands off " policies on the economy led directly to investments in producing capital goods and services.

One note on this however, as it is a vital one in the economic growth in the USA. Capitalism is an economic system whereby private investment and industries are not closely regulated or "owned" by the government.

In the USA, most of the land west of the Mississippi River was owned by the Federal Government. With that in mind we come upon one of the most profitable &powerful busnesses in the USA in the 19th Century.

The railways were the "children" of the Federal Government. The rights of way, land leases or giveaway sales to the railways by the government were socialistic in nature.
The Indstrial Revolution fueled the growth of capitalism with increased work productivity and a boost to the economy.

Answer 2

The capitalism that had its roots in the late 18th century enabled private investors to build manufacturing plants and use the profits to reinvest in new and budding industries. Funds fueled the development of more industry and inventions. The early days of capitalism were unchecked by government regulations and wages paid to workers was low. The downside of this system was poverty, child labor, and unhealthy working conditions. The industrial revolution began in England and it was the English government that began to pass laws to help reduce the abuses in the factories and mills.

Answer 3

By encouraging entrepreneurs to establish businesses

Answer 4

Industrialism is like a natural extension of capitalism. Capitalist discovered that mass manufacturing was the best way to exponentially increase wealth.

Answer 5

Capitalism encouraged entrepreneurs to establish businesses.