Social Studies 3219 February 2017 17. 2: The Rise of Socialism Social Studies 3219 February 2017

Section Overview In industrialized countries in the 19th century, the Industrial Revolution opened a wide gap between the rich and the poor. Before the industrial revolution there were two major classes: the nobles and peasants. During the industrial revolution though, two new classes evolved named the middle class and the working class. The upper class was the wealthiest class

Section Overview Business leaders believed that governments should stay out of business and economic affairs. Reformers, however, felt that governments needed to play an active role to improve conditions for the poor. Workers also demanded more rights and protection & formed labor unions to increase their influence.

Philosophers of Industrialization Who were some of the prominent philosophers during the Industrial Revolution an what were their main beliefs / ideas? Adam Smith Thomas Malthus David Ricardo Jeremy Bentham John Stuart Mill Robert Owen Scan pages 734 – 736 and outline the main ideas, beliefs, philosophies of these individuals Some supported laissez fair economics – advising governments to leave businesses alone “hands off” Others supported government intervention

Philosophers of Industrialism As we have seen, Adam Smith’s natural laws of economics and the principles of laissez-faire economics were vital in influencing the development of capitalism. Capitalism is an economic system in which the factors of production are owned by private individuals who invest their money to improve efficiency and profit. This meant that factories, businesses, capital, and labour were controlled by businessmen or entrepreneurs. This helped bring about the Industrial Revolution as these “captains of industry” sought to make improvements to their equipment and methods as ways of boosting profit.

Philosophers of Industrialism Other laissez-faire thinkers believed that the primary goal of economics was the continual production of wealth in society, even at the expense of lower classes. Thomas Malthus (1766-1834) wrote about the effects of a growing population in England during the late 1700s. He believed that population growth was higher than the growth of food supply possible in the economy. Poverty and misery, he argued, were the natural result of this if war and disease did not kill off the surplus population. Therefore, there would be a lower class of poor who would find survival difficult with starvation a real issue.

Philosophers of Industrialism David Ricardo (1772-1823), an Englishman, agreed with Malthus that there would be a permanent lower class of society that would always be poor. He said in his Essay on Profits, "Profits depend on high or low wages, wages on the price of necessaries, and the price of necessaries chiefly on the price of food.“ He said that in a laissez-faire system, a small number of workers with result in more expensive labour and high production costs, while a large number of workers results in cheaper labour and lower production costs. For this reason, as population increased wages would decrease, resulting in less wealth for the working class and higher rates of poverty.

Philosophers of Industrialism It is clear that in capitalism there is a great potential for wealth production, but also a great potential for poverty and economic inequality. The owners of the factors of production tended to profit most, while the working class experienced economic hardship. Overtime, this would lead to unrest and dissatisfaction among the working class.

Philosophers of Industrialism In the late 1700s, some began to oppose the laissez-faire philosophy, they were known as utilitarians. Jeremy Bentham (1748-1832) believed all ideas, institutions, and actions should be judged based on their utility or usefulness. He developed the concept of utilitarianism – the idea that government should try to promote the greatest good for the greatest number of people.

Philosophers of Industrialism Things are “good” in as much they produce pleasure and “bad” if they produce pain. “The business of government is to promote the happiness of the society....” Any government or economic decision or policy should only be considered useful if it promotes this goal.

Philosophers of Industrialism John Stuart Mill (1806-1873) further developed the idea of utilitarianism. He questioned capitalism that was not kept in check by government regulations. For Mill, it wasn’t enough that wealth must be produced, but that it was ethically wrong to do so at the expense of the poor working class.

Philosophers of Industrialism He advocated that government should adopt policies that would improve the lives of the majority of citizens: (e.g., more equal distribution of profits between business owners and workers, women’s suffrage, education, etc.). These utilitarian philosophers began to bring a concern for quality of life into the economic conversation.

Utopian Ideas Reformers who wanted to change the economic conditions they witnessed decided to create a utopia. Utopia refers to an ideal, imagined society where there are perfect conditions for its citizens. Robert Owen (1771-1858)was a factory owner shocked by the conditions faced by his workers. He decided to improve living conditions by building solid houses for his workers. At this time entire families would be house in a single room. He banned children under ten from working in his mill and he provided free schooling for employees’ families. He would go on to create a community in the United States called New Harmony as a utopian community.

Utopian Ideas These ideas would continue to be inspiring to other people. A similar example can be found in Newfoundland in the town of Port Union where the Fisherman’s Protective Union created an entire community for the benefit of the workers.

Socialism To counteract the negative conditions many saw as a result of industrialization, other thinkers developed new ideas of government responsibility for the economy. The French reformers Charles Fourier and Henri de Saint-Simon established the idea that in order for the workers to receive the benefits of industrialisation the factors of production have to be owned by the public and not by just a few capitalists. This new idea, called socialism, they said would create a perfect society. Socialists argue that government should plan the economy so that it is fair for all. Public ownership of factories, mines, and other key industries would end poverty and promote equality by sharing the wealth of the nation equally. Socialists also put forward at this time that change could be achieved by giving voting rights to more people.

19th Century Social Reforms in Britain In Britain, governments would gradually adopt some of the reforms of utilitarianism and socialism. From 1800 to 1900 there were huge changes in the way that government would influence the lives of people. Unions were voluntary labour associations that workers joined to help bargain for better working conditions, wages, etc.

19th Century Social Reforms in Britain Combination Acts 1799-1800 This anti-reform law passed by Government initially saw unions as a threat to social order and stability and outlawed the formation of unions and strikes. Many workers would risk jail or loss of job and join unions anyway because of the benefit they felt this would give them. Repeal of the Combination Act (1824) Government grudgingly accepted that workers had the right to band together to ask for better conditions.

19th Century Social Reforms in Britain Slavery Abolishment (1833) This act gave all slaves in the British Empire their freedom. The British government paid compensation to the slave owners.  Factory Act (1833) Was an attempt to establish a normal working day in the textile industry Made it illegal to hire children under the age of 9. Limited the hours of work for children (13 – 18) to 12 hrs / day

19th Century Social Reforms in Britain Mines Act (1842) Stopped women and children under 10 from working in mines. Ten Hours Act (1847) Limited the length of the workday for women and children to 10 hours.

19th Century Social Reforms in Britain  Royal Commission of 1876  The 1876 Royal Commission on the Factory Acts (a government research study) recommended that education be made compulsory in order to stop child labour. Education Act (1880)  Made it compulsory for all children from age 5-10 to go to school.

19th Century Social Reforms in Britain   These reforms demonstrate the gradual acceptance of the many of the ideas of utilitarianism and socialism.