The Age of Reform

Capitalism Governments should not interfere with the economy Industrialization led to new ways of thinking about society. Some thought that governments should leave business owners alone. Their view was called Laissez Faire Adam Smith wrote a book in 1776 defending the idea of a free economy, or free market. His book was called The Wealth of Nations Governments should not interfere with the economy

Capitalism Capitalism is an economic system in which money is invested in business ventures with the goal of making a profit. Capitalists believed that the government should not step into the business world for any reason, including to make laws that would create better wages or working conditions. These policies would only decrease profits

Capitalism Negatives Only a few grow rich No labor laws People grew very dissatisfied with working conditions and the unequal distribution of wealth Positives More competition Better goods at better prices Entrepreneurial opportunities Growth of Middle Class

Capitalism Review Come up with 5 words to describe Capitalism. Who wrote “Wealth of Nations”? What does Laissez Faire mean? What is the goal of Capitalism? List 2 positives of Capitalism List 2 negatives of capitalism

Communism and Socialism Communism/socialism was a response to the injustices of capitalisms Socialism – a government formed economic system involving factors of production (i.e. textiles, energy sources) being owned and operated by the public and operated for the welfare of all.

Communism- a more extreme form of socialism, in which the people own all aspects of business and share all goods and services. Ex. Factories, cotton, railroads……….

Karl Marx (and Fredrich Engles) wrote The Communist Manifesto. (1848) Argues the world has always been divided between the “haves”, or the middle class and the “ have-nots” or the lower /working class The rich were growing richer and the poor poorer “Workingmen of all countries unite”

Negatives Positives Less competition Inefficient businesses No price competition Positives People for the good of all Attempted to redistribute wealth

Communism Review List 3 words to describe communism. Who wrote the “ Communist Manifesto” What role does the government play in a communist nation? List 2 differences between communism and capitalism. List one positive of communism. List one negative of communism.

Labor Unions Unions- workers who join together in voluntary associations Collective Bargaining- negotiations between workers and their employers Strikes –refusal to work in order to force an employer to meet certain demands

1842 Mines Act- women and children couldn't work underground By 1820-1830s laws started to be made to help reform working conditions in Britain and the US Factory Act 1833- 9-12- less than 8 hours 13-17- less than 12 hours 1842 Mines Act- women and children couldn't work underground 1847- Ten Hour Law 1919- Child Labor Law and minimum wage laws

Slavery Moral objection Economic objection In the beginning of the Industrial Revolution the Cotton Gin greatly increased the demand for slave labor 1833 Britain abolished slavery Moral objection Economic objection 1865 The US ended slave labor after the Union won the Civil War

WOMEN Women made 1/3 less than men Women joined labors to improve the factories they worked in As women began to fight to end slavery they also began to fight for suffrage, or the right to vote

Reforms Review What is a labor union? What 2 tactics do labor union’s use to get results? Which country was first to outlaw slavery? What is suffrage and who wanted it?