Ch 25 Notecards

Industrial Revolution Who: British, Europeans What: an age where machine-made goods increased the output of goods Where: England, then Europe, then the rest of the world When: Mid-1700s Why: transformed the way people worked- from home to factories, changed every aspect of life from agricultural to industrial with factories

Crop Rotation Who: Agricultural Farmers What: a system of agriculture where every year the farmer rotated or changed the crop he planted to restore the soil Where: England, Europe When: 1700s Why: part of the Agricultural Revolution; improved older agricultural methods which made food supplies increase and living conditions improve

Industrialization Who: British & Europeans What: the process of developing machine production of goods Where: England, & Europe When: 1700s Why: this led to a shift for all aspects of life- farm production to factory prod.; rural living to city living; villages to cities; individually made goods to mass produced goods

Factories Who: Wealthy owners What: large buildings with large machines near rivers for waterpower. Where: England, Europe When: Mid-1700s Why: these factories mass-produced goods for selling = life of the worker changed = society changed

Section 2: Industrialization

Industrialization changed everything about life & society… Industrial cities grew = Urbanization Living conditions = decreased– cramped city living (think Slums) Working conditions = decreased Society/Social pyramid = changed!!

Urbanization Who: Europeans What: a period of city building and the movement of people to cities. Where: (you can figure it out by now…) When: Why: The growth of the factory system = a shift in where people worked and lived = people moved from the rural areas to the city = urban areas doubled or quadrupled in this time

Urbanization led to a change in society and who was at the top of the pyramid… It created a new….

Middle Class Who: (You know this one) What: an Industrial Age social class made up of skilled workers, professionals, business people, and wealthy farmers. Where: (You know this one too…) When: Why: With Industrialization, the social pyramid changed = factory owners grew wealthier than the old landowners & aristocrats = they were at the top = they had the wealth & power

The OLD pyramid Kings/Nobles/LandownersMerchantsPeasants

The NEW pyramid Factory Owners “Old” Landowners Factory Workers

Section 3: Industrialization Spreads

Industrialization started in Britain then spread to Europe then spread to USA… When it got to the USA people developed “corporations” which were businesses owned by “stock-holders” who shared ownership… so instead of one factory owner owning a factory.. Groups of rich people would own one factory IF they owned “STOCK” which was a share in the ownership..

This lead to the STOCK MARKET!! People can NOW buy shares in any company they want and have a piece of “ownership” in that corporation..

Section 4: Reforming the Industrial World

Industrialization created a WIDE gap between the rich & poor FACTORY OWNERS wanted gov’t to STAY OUT of their business affairs (don’t want regulations on how to run their factories, etc) Vs REFORMERS want gov’t TO interfere so the conditions of the poor improve!

These 2 views of how factories should be run led to different economic philosophies (or ideas.) The first philosophy-type is the “Factory Owners” ……such as…..

Laissez- Faire Who: Adam Smith What: economic policy that let owners of industry & business set the working conditions without gov’t interference; a free market unregulated by the gov’t.; means “Let do” Where: Britain, Europe When: 1776 Why: the belief was that the economy would prosper if the gov’t stayed out of trade & economy

This idea was introduced by…….

Adam Smith Who: Scottish professor What: wrote “The Wealth of Nations” that defended free market, or Laissez- Faire Where: Scotland When: 1776 Why: he said economic freedom = economic progress; he supported ‘Laissez-Faire’ based on the ideas- 1.people work for their own good, 2. competition = better products, 3. Supply & Demand; his ideas led to Capitalism

His ideas were supported by other economists…. = more ideas of how the economy should be…. …..such as…….

Capitalism Who: Thomas Malthus & David Ricardo What: an economic system in which the factors of production are privately owned & money is invested to make a profit Where: Britain, Europe, USA When: late 1700s Why: wanted less gov’t interference in economy, higher profit, & cheap labor; Most of the world is this today- ESP the USA!!

Now, the other side said “Gov’t should play a part in the Economy to make sure the businesses are being fair” These theories are supported by the “Factory Workers” …. Such as….

Utilitarianism Who: Jeremy Bentham, John Stuart Mill What: idea that people should judge ideas, institutions, & actions based on their utility, or usefulness. Where: England, then Europe When: late-1700s Why: this philosophy fought for “the greatest good for the greatest number of people”; John Stuart Mill applied this to the factories- the worker should have rights and not live a deprived life. = factory reform

Also, another “for the worker” philosophy is going to become SUPER popular and is still around today…

Socialism Who: Industrial Reformers What: a system where the factors of production (aka the machines & factories) are owned by the public and operate for the welfare of all Where: Germany When: 1800s Why: this idea grew out of a positive view on human nature, a belief in progress, and concern for social justice; this idea says the gov’t should plan the economy instead of free-capitalism; they thought gov’t controlling the economy = end of poverty & social equality

Could you imagine our gov’t controlling the economy?? Fixed prices… No small businesses that you can just start up and make money…. Hmmm…. So this idea leads to an EXTREME view, or radical Socialism…

Karl Marx Who: German Journalist What: created Marxism, an extreme form of socialism- which explained the cycles of social classes (“Dialectical Materialism”) Where: Germany When: Why: This social cycle theory’s last stage was Communism which was a big thing in WWI, WWII, & The Cold War- aka the rest of history!! (notice how he’s from GERMANY??? Hint Hint)

So, his theory went like this: The lower class “Proletariat” (as he called them) would always revolt against the upper class UNTIL A classless society developed (“Communism”) (look at the cycle on the last slide of the ppt) All the lower class ppl obv like this idea, right? A Classless society! = WHOA!! AWESOME!!! HECK YEA- GIMME THAT!!!

Well……. Great IDEA…. BUT…. Throughout the rest of history, we will learn it won’t ever work…  BUT we had to learn that through WWI, WWII, and the COLD WAR… So, Stay tuned!

Dialectical Materialism Bourgeoisie (upper class) #1: Kings & Nobles vs. = New phase… #2: Landowners vs. = New Phase… #3: Factory OWNERS vs. = New Phase… Communism! – Factory workers are in charge, own the means of production = Classless society Proletariat (lower class) Peasants = Revolt & become new Bourgeoisie! Peasants = Revolt & become the new Bourgeoisie! Factory Workers = Revolt & become the new bourgeoisie!