The term “putting out system” refers to a historical method of production that emerged primarily in the early industrial era, particularly in the late 18th and early 19th centuries. This system was a precursor to modern factory-based production and involved the distribution of work to be done at home or in small workshops rather than in a centralized factory setting.
Key Features of the Putting Out System:
Decentralized Production: Work was distributed among various households or small artisans rather than being concentrated in one location. This allowed workers to produce goods in their own homes.
Piecework: Workers were often paid per piece of work completed, which incentivized them to produce more. This model allowed for flexibility in work hours and quantity of output.
Raw Materials Provided by Entrepreneurs: In this system, entrepreneurs or merchants would supply raw materials to workers, who would then process them into finished goods. Once the work was completed, the finished products would be returned to the entrepreneur for sale.
Types of Goods: The putting out system was commonly used for textiles, clothing, and other handicraft goods. Cottage industries often thrived under this model, especially in rural areas.
Impact on Labor: This system allowed individuals, including women and children, to participate in the workforce, often enabling families to supplement their income. However, it could also lead to exploitation, with low wages and long hours.
Transition to Factories: As industrialization progressed, many aspects of the putting out system were absorbed into the factory system. Factories centralized production, allowed for mass production, and increased efficiency, leading to the decline of the putting out system.
Historical Context:
The putting out system was significant during the pre-industrial and early industrial periods, particularly before the widespread adoption of mechanized production methods and factory systems. It played a crucial role in the transition to industrial economies and helped shape labor practices and economic structures that would follow.
Conclusion:
In summary, the putting out system was an important stage in the evolution of production methods, characterized by decentralized work, piecework compensation, and the involvement of home-based workers. Its legacy can still be seen in certain modern production practices, especially in areas like artisanal crafts and small-scale manufacturing.