The Industrial Revolution, Political Transition,and the Subsequent Decline in Inequality in 19th-Century Britain

Democratization was a key mediating factor linking Britain’s first industrial revolution
to subsequent reductions in income inequality.Accelerated economic growth, generating a
wider distribution of discretionary resources, created incentives for repeated expansions of
the franchise, which then led to a progressive shift in legislation. After the Second and
Third Reform Acts, income inequality was reduced by successive acts of legislation which
provided free public education; strengthened the legal standing of the trade unions; aided
the aged, the sick, and the unemployed without abridging their political rights; and
replaced regressive indirect taxes with progressive taxes on income, land, and inherited
wealth.