Putting-out/Cottage System

Definition

The Putting-out or Cottage System was a decentralized production method prevalent in the pre-industrial economy, where work was contracted to individuals in their homes rather than centralized factories. This system allowed rural families to engage in textile production and other crafts, facilitating economic independence and contributing to the gradual shift toward industrialization as demand for goods increased.

5 Must Know Facts For Your Next Test

1. The Putting-out System allowed entrepreneurs to distribute raw materials to workers at home, reducing the costs associated with labor and factory space.
2. Workers in the cottage system often faced unstable income and variable working conditions, as their pay was typically based on the quantity of goods produced.
3. This system contributed to the early stages of capitalism by creating a market for goods produced in homes, which eventually paved the way for factory-based production methods.
4. As industrialization progressed, the Putting-out System declined due to the rise of mechanized production that required centralized labor forces.
5. The transition from the Putting-out System to industrial factories marked a significant change in labor practices and social structures, impacting family life and community dynamics.

Review Questions

• How did the Putting-out System contribute to early forms of capitalism and set the stage for industrialization?
  • The Putting-out System contributed to early forms of capitalism by creating a market for goods produced outside traditional workshops or factories. By allowing individual families to produce items at home, it fostered entrepreneurship and encouraged competition among workers. As demand for textile products increased, this decentralized method created an environment ripe for transition into industrialization, where mechanized production methods began to dominate.
• Analyze the impact of the decline of the Putting-out System on labor practices and family dynamics during the Industrial Revolution.
  • The decline of the Putting-out System led to significant changes in labor practices as workers shifted from home-based production to factory work. This transition often resulted in longer hours and harsher conditions as families moved into urban areas to find employment. The family unit also transformed as women and children joined the workforce in factories, altering traditional roles and dynamics within households and contributing to broader social changes during the Industrial Revolution.
• Evaluate how the shift from the Putting-out System to factory production reflected broader economic changes during this period in Europe.
  • The shift from the Putting-out System to factory production reflected broader economic changes characterized by increased efficiency, technological innovation, and urbanization. As industries sought greater output at lower costs, centralized factories replaced home-based production methods, leading to mass production capabilities. This evolution not only transformed economic practices but also prompted significant societal shifts, including urban migration and changes in labor organization, which shaped modern economies and societies in Europe.

Related terms

Textile Industry:

A sector of the economy focused on the production of cloth and fabrics, which became a major driving force behind industrialization.

Industrial Revolution:

A period of major industrialization during the late 18th and early 19th centuries that transformed economies from agrarian to industrial and urban.

Mercantilism:

An economic theory that emphasizes the role of government in regulating the economy to increase national power, often through trade regulation.