Post on 25-Dec-2015
Reforming the industrial World
Philosophers
Adam Smith Laissez-faire Economics
French economic philosophers
Believed that government should not interfere with business and the economy would prosper.
Smith believed economic liberty guaranteed economic progress.
Smith’s Arguments3 Natural Laws of Economics 1. The law of self interest
People work for their own good
2. The law of competition Competition forces people to make a better
product
3. The law of supply and demand Enough goods would be produced at the lowest
possible price to meet demand in a market economy
Smith’s Ideas Supported by British economists Thomas
Malthus and David Ricardo
Formation of laissez-faire capitalism
What is Capitalism?
An economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit
Malthus Argument
Thomas malthus
Wrote An Essay on the Principle of Population
Population has a tendency to increase more quickly than the available food supply.
Without wars, disease and epidemics most people would be poor
Ricardo Argument
David ricardo
Pinciples of Political Economy & Taxation
Poor will continue to be poor
Believed in a market system
Wages would be lower as population increases
Rise of Socialism Jeremy Bentham
took Smith’s ideas and modified it
Utilitarianism Govt. should
promote the greatest good for the greatest number of people.
Govt. was only good if they promoted this goal
John Stuart Mill Led Utilitarianism
movement in 1800’s Workers should not
live deprived lives Favored –
Cooperative system of agriculture
Women’s rights Reform in education
and prison system
Rise of Socialism To offset the problems of industrialization with
a new system (Socialism) Government should plan the economy rather
than focus on the free market system Government controls
Factories Railroads Industry Mines
Karl Marx (1818-1883) German journalist
introduced Marxism Wrote the The
Communist Manifesto Argued that human
have been divided into warring classes
Bourgeoisie Proletariat Enriched the wealthy
& impoverished the poor
Marx on the Future Capitalism would
destroy itself Proletariat would
revolt Seize control of
factories from capitalist
Produce only what society needs
Economic equality for all people
Future Continued The workers would share the profits
After a period of cooperative living and education, the government would go away as a classless society developed
Last phase was called Communism
The Communist Manifesto Produced few very
little results Uprisings began to
occur in Europe After the turn of the
century did the pamphlet create major results
Inspired Lenin, Mao Zedong and Fidel Castro
Labor Unions Unions spoke for all
workers Collective Bargaining Union members
could strike if demands were not met
Led by skilled workers
Unions struggled to form due to govt.
Great Britain Unions Britain saw unions as a threat to social order
and stability Combination Act 1799 outlawed people to join
unions People ignored Act British Parliament revoked the act in 1824 Goals to raise wages and improve working
conditions
United States
Unions were around since the early 1800’s
AFL (American Federation of Labor) is formed 1886
Successful strikes produced gains in members wages and shorter hours
New Types of Reform Laws Parliament begins to investigate child labor
and working conditions Parliament passed the Factory Act 1833 Parliament passed the Mines Act 1842 Parliament passed the Ten Hours Act 1847 In the U.S. organization of the National Child
Labor Committee 1919 U.S. Supreme Court objected to federal
child labor law (state rights) Individual States could regulate working
hours
Abolition of SlaveryEnglandWilliam Wilberforce led
the fight for abolitionUnited StatesSlavery ended at the
end of the Civil WarPuerto Rico ended
1873Cuba ended in 1886Brazil in 1888
Women’s RightsBritain Women served as
inspectors were other women worked
United States Educated women ran
settlement houses Jane Addams
Wanted their own rights
Other Reforms Public Education led by Horace Mann in the
United StatesEducate children to be good citizens and knowledgeable
Prison Reform in 1831 American prisons were seen as brutal conditions New goal to provide prisoners with skills and traits
to be useful in society when released