According to Engels, what is the effect of industrialization on people and towns?

the exploitation of the working class.

Explanation:

According to Engles, competition that created from the industrialization require capital owners to design their operation in the cheapest way possible while maintaining as high of a profit margin as possible.

As a result, a lot of them were exploiting the working class. They were paying their workers with unfair salaries and forced them to work on extremely work hours. On top of that, they did not invested in workplace safety that resulted in large number of deaths.

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