Industrial Revolution: New Ways of Thinking

Adam Smith

Adam Smith Enlightenment Idea Laissez-faire economics Free market economy - unregulated exchange of goods and services

Thomas Malthus

Thomas Malthus Wrote about population, helped shape economic thinking Population would grow faster than the food supply Family planning

David Ricardo

David Ricardo British economist Poor people had too many children, This increase supply of labor, led to lower wages and higher unemployment

Jeremy Bentham Utilitarianism Goal of society should be “the greatest happiness for the greatest number.” Laws based on Utility - do laws bring more pleasure or pain

Socialism Reaction to laissez-faire People as a whole, rather than private individuals would own and operate the “means of production.”

Karl Marx

Karl Marx German Philosopher 1848 with Freidrich Engels writes The Communist Manifesto New form of Socialism - Communism Communism - class struggle between employers and employees

Marxism and The Manifesto Economics driving force in history History of class struggles between the haves and have nots Haves - bourgeoisie, owned the means of production Have-nots - proletariat, “working class.” In the end the proletariat would win and a class less society would be set up