Reforming the Industrial World The Philosophers of Industrialization In response to the Industrial Revolution philosophers came up with a few different economic systems One new concept was Laissezfaire ID: 499348
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Slide1
25.4 Notes
Reforming the Industrial WorldSlide2
The Philosophers of Industrialization
In response to the Industrial Revolution, philosophers came up with a few different economic systems
One new concept was
Laissez-faire
:
economic
policy of letting owners of industry and business set
working
conditions without
interference
free
market unregulated by the
government
means
“let do” in French Slide3
Adam smith
Wrote
The Wealth of Nations (1776)
: economic liberty=economic progress
He is credited with the idea
of free markets/free economy
“Invisible hand” will guide the economy if left
alone because people
follow their self-interest
3 natural laws of economics:
the law of
self-interest:
ppl
will work for own
good
the law of
competition: it
helps create better
products
the law of supply and
demand: goods
will be produced at the lowest possible price to meet
demandSlide4
The economics of capitalism
Capitalism
: economic system where factors of production are privately owned and money is invested to make a profit; helped bring about
Industrial Revolution
Thomas Malthus wrote
An Essay on the Principle of Population(1798)
: population increasing faster than food
supply=more
ppl
are destined to be poor and
miserable
David Ricardo:
Principles of Political economy and Taxation(1817)
in market system there will always be a poor class
bc
too many workers=workers paid cheap
bc
excess
supplySlide5
utilitarianism
Jeremy Bentham’s idea:
utilitarianism
:
ppl
should judge ideas, institutions, and actions based on their usefulness; gov’t should promote greatest good for greatest number of
ppl
John Stuart Mill led the utilitarian
movement
in 1800s; wanted to equalize
ppl
, reforms in legal and prison systems and in education; women’s rightsSlide6
Utopian ideas
Robert
Owen was factory owner, shocked at conditions and improved them for his employees by building low rent housing, prohibiting children under 10 from working
Founded New Harmony in US, cooperative community, supposed to be
utopia
: perfect place; only lasted 3
yrs
but inspired other cooperative communities to start Slide7
The rise of socialism
Opposite to
laissez-faire,
some believed gov’t should intervene to help poor
Def
: Economic system where The factors of
production(land, labor, capital)
are owned by the public and operate for the welfare of all
Grew out of belief in progress, concern for social justice; gov’t should control economy, help end poverty and promote equality; sought to offset ills of industrializationSlide8
Marxism: radical socialism
German journalist
Karl Marx
created radical type of socialism: Marxism
Marx along with Engels wrote
The
Communist Manifesto
Human societies have always been divided into warring classes,
bourgeoisie
(employers,
“haves”)
and the
proletariat
(workers,
“have
nots
”)
predicted
overthrow of society by proletariatSlide9
The future according to marx
Communism
: final phase, complete socialism in which means of production would be owned by
ppl
no
private
property
Capitalism
, which caused the IR, would destroy itself
bc
causes small grp to own all wealth; proletariat would revolt,
wrkers
share in profits, bring about economic equality, no gov’t=classless society
Marxism inspired revolutions in Russia
(Lenin
), China
(
M
ao
), and Cuba
(Castro)
Marx and Engels believed economic forces alone dominated society-time has shown not trueSlide10
Labor unions and reform laws
Voluntary
labor associations:
unions
Unions
used collective bargaining(negotiations between workers and employers) for better conditions, wages; would
strike
: refuse to work
Unions in both US and GB-GB outlawed them at first, then “tolerated”
them
Reform
Laws
Both countries made reforms: Factory Act of 1833: no children under age 9, set limits for
9-17
yr
olds
Parliament also passed 10
hr
day; US tooSlide11
The reform movement spread
The
Abolition of Slavery
1833 Britain abolished slavery in its
empire
US ended it in 1865, Brazil 1888-arguments against it for moral and economic reasons
The
Fight for Women’s Rights
Ind
Rev was mixed blessing-women made more money, but 1/3 of what men made
Women led reform
mvments
in both countries; 1848 women’s rights started in US
Reforms
Spread to Many Areas of Life
Public
edu
(led by Horace Mann, wanted free public education for all kids
)
prison reform