INDUSTRIALIZATION What do we mean by the term industrialization This term describes the change that occurred in American society after the Civil War that included the following characteristics ID: 501199
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Slide1
The Essential Questions and Answers
INDUSTRIALIZATIONSlide2
What do we mean by the term industrialization?
This term describes the change that occurred in American society after the Civil War that included the following characteristics
The unprecedented growth in human productivity due to the use of machinery and new technology in nearly all areas of work
The mass production of goods that previously took much longer to create
The movement of labor from rural areas to urban areas to match up with the available capital
The Division of Labor that broke large jobs into small, repetitive tasksSlide3
How did gains from trade lead to industrialization?
Why do you and the checkout person both say, “Thank You” when you
complete a purchase at
the supermarket
???
The
grocer wanted your cash more than the candy bar, and you wanted the candy bar more than the cash…YOU BOTH WIN!!
YOU
HAVE BOTH GAINED FROM THE TRADE
!!!
Trade happens because both sides view the action or exchange as a ‘win-win’ scenario!Slide4
How did gains from trade lead to industrialization?
Gains from trade are the result of a buyer and seller who
voluntarily
interact in free markets.
Buyers and sellers both believe that their actions will increase their
perceived profits
.
If they didn’t think they would
profit in some way,
then
they
wouldn’t enter the
market
!
The use of force or coercion on either a buyer, a seller, or both, means that
we don’t have
a truly ‘free’
market.Slide5
How did gains from trade lead to industrialization?
REALITY CHECK
:
Each
person in the world has different skills, talents, abilities
, tools, energy level, education, likes, dislikes
and work
ethic
Economists call these things “Human Capital”
all of these things are scarce or limited to one degree or another in every human being
Example
:
It
would cost Mr.
Smith
about 20 hours to prepare a roof for new shingles, but a professional roofer can do this in about 5
hours
On the other hand, Mr. Smith can prepare a lesson plan in ½ an hour while it would take the roofer 2 hoursSlide6
How did gains from trade lead to industrialization?
So…they
TRADE!
And, both of them are better
off, because they have more free time.
So, Mr
.
Smith
gets a new roof
in under 20 hours, and
the roofer has his kids
educated in under 2 hours
by Mr.
Smith
This allows them to SPECIALIZE
in what they are best at, and this is how they both
gain (time)
from tradeSlide7
How did gains from trade lead to industrialization?
This is the underlying concept behind every single human action!
Humans believe that the actions they take will produce outcomes that improve their perceived profits
“
Perceived profits
” can mean many things like:
money, happiness, comfort, ease, improvement, love, fun, friendship, popularity, even avoiding certain people, avoiding pain or embarrassment are considered ‘profitable’ depending on the person’s values
So, every time people trade, they do it because they believe they are gaining one or more of these “perceived profits” Slide8
How did gains from trade lead to industrialization?
1: What was it that made people so much more productive
during the post-Civil War era?
2: How is it that ‘win-win scenarios are possible?
3: What happens to human decisions when force and
coercion are used?
4
: How would you reconcile the idea that ‘All Men are
Created Equal with the “Reality Check”?
5: Why don’t people do everything they need by themselves?
6: Why do Mr. Smith and the roofer need to specialize?
7: Is it possible to know what every person feels is ‘profitable’?