DO NOW: What new ideas about economics and society were fostered as a result of the Industrial Revolution?

“The Struggle of the Working Class” Karl Marx and Friedrich Engels give their view on how the Industrial Revolution affected workers: “Owing to the extensive use of machinery and to division of labor, the work of the proletarians has lost all individual character, and, consequently, all charm for the workman. He becomes [a limb] of the machine, and it is only the most simple, most monotonous, and most easily acquired knack, that is required of him. . . .”—From The Communist Manifesto

Religion Drives Society Christian and Jewish organizations pushed for reforms to help the working poor. Some churches opened schools. Many Protestant churches promoted the social gospel, which urged Christians to social service.

Charles Darwin In his book On the Origin of Species, explained how species could evolve through natural selection.

Some people used Darwin’s theory of natural selection to support their own beliefs about society. Social Darwinists, for example, contended that industrial tycoons were more “fit” than those they put out of business. Some argued that victory in war or business was proof of superiority, a view that encouraged racism.

No Gov’t Intervention Enlightenment economic thinkers believed that natural laws govern the world of business and economics. They believed these laws should be allowed to operate without any government interference. This attitude of keeping “hands off” was called “laissez faire.” DO THE HAND MOTION WHEN YOU SEE THIS ;-)

Adam Smith “The Wealth of Nations” (1776) Most middle-class capitalists agreed with Smith’s laissez-faire approach to capitalism. Supporters of free-market capitalism saw the success of the industrial age, in which government played no part, as evidence for laissez faire.

Thomas Malthus English economist who carefully studied the impact of the population explosion in eighteenth-century Britain. Many agreed with Malthus, but he proved to be wrong. Food production rose quickly over the next century.

Thomas Malthus’ Beliefs He concluded that poverty was unavoidable because the population was growing faster than the nation’s ability to grow food. Malthus said that unless the working class had fewer children, they were doomed to remain in poverty. He felt that “natural events” such as famine or war were the only mechanisms to maintain a sustainable population.

David Ricardo Ricardo saw no hope for the working class to escape poverty. Ricardo opposed help for the poor, contending that this would only lead them to have more children. Malthus and Ricardo saw the “laws of the free market” as the best cure for poverty and advised the poor to be thrifty, work hard, and have fewer children.

Jeremy Bentham Believed there should be some government intervention in the economy. Goal of society should be “the greatest happiness for the greatest number of citizens.” This idea was called utilitarianism. Laws should be judged by their utility to benefit people.

John Stewart Mill Believed in individual freedom. But he also believed, “The only purpose for which power can be rightfully exercised over any member of a civilized community, against his will, is to prevent harm to others.” Mill saw capitalists harming workers. He called for limiting their power to do so by giving workers the right to vote.

Individuals should own and operate the means of production for profit. The champions of laissez-faire economics praised individual rights, whereas socialists focused on the good of society in general. Capitalism Socialism Individuals should own and operate the means of production for profit. The people as a whole should own and operate the means of production for the general good.

Social Classes Change in the 1800s Prior to the Industrial Revolution, there were only two main social classes: nobles and peasants. Three social classes emerged by the late 1800s. The new upper class, a mix of aristocrats and wealthy entrepreneurs The growing middle class and lower middle class Workers and peasants

Utopians Socialists set up communities where work was shared and property was commonly owned. These early socialists were called Utopians. The name implied impractical dreamers. Robert Owen set up a Utopian community at his cotton mill in New Lanark, Scotland.

Robert Owen At New Lanark, Owen: Raised wages Provided schools Owen’s model community was intended to show that mill owners could make a profit and still offer decent wages and conditions. At New Lanark, Owen: Raised wages Provided schools Refused to use child labor Built homes for workers Ran a profitable business

Karl Marx Condemned the ideas of the Utopians as unrealistic idealism. Formulated a new theory that he called “scientific socialism.”

“The Communist Manifesto” (1848) Marx published along with Englishman Frederick Engels He predicted a struggle between the social classes that would lead to a classless society. The workers would take over all of the means of production, such as the farms, factories, and railways, and run them for the public good.

“Haves” vs. “Have-Nots” In industrialized Western Europe, the “haves” were the business owners or bourgeoisie. The “have-nots” were the workers, or proletariat. In the end, Marx predicted that the proletariat would unite along class lines, take control of the means of production, and end the struggle.

Communism In practice, Marx’s ideas evolved into communism, a system in which governments led by a small elite controlled all economic and political life. Russian socialists embraced Marx’s ideas and set up a communist-inspired government in 1917.

Social Democracy Marx called for workers everywhere to unite and overthrow the capitalists. In Germany, socialists adapted Marx’s beliefs to form social democracy, a political ideology calling for a gradual transition from capitalism to socialism.

Marx’s Dream Fails Revolutionaries around the world adapted Marx to their local goals and needs. But workers worldwide never united as a class. The later failures of communist nations illustrated flaws in Marx’s theories.