Reforming the Industrial World 25.4 Notes

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

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 demand

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 supply

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 rights

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

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 industrialization

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 proletariat

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 (Mao), and Cuba (Castro) Marx and Engels believed economic forces alone dominated society-time has shown not true

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 too

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