Twitter Feed: Impressions of a Trading Network Scan over the class’ Twitter feed and Retweet your impressions of the feed as a whole **Print neatly as they will be placed around the feed

Historical Globalization & Imperialism Chapter Issue: To what extent did historical globalization affect people’s lives? Part 2

The Values Behind Capitalism What values drove capitalism?

Early Capitalism Mercantilism vs Capitalism Requirements: Free market Open competition Profit motive Extensive private ownership of the means of production Money lending (charging interest for profit) -- finance large-scale business enterprises in trade & manufacturing -- partnerships and companies…risk

Early Capitalism Age of Enlightenment (18th century +) – shift to individual thought The rights of monarchs was challenged. People wanted more rights & freedoms for ordinary people Adam Smith [Scottish philosopher and economist] Imagined a Society of Perfect Liberty, in which economic growth would increase naturally and rapidly if entrepreneurs were free of government restrictions Hardest working, most entrepreneurial people would succeed Benefit all of society People would reinvest their profits – employ more people – donate to charity Create a product/service that would be of value to others

Competition & Freedom Adam Smith believed in 4 key ideas: Individual initiative and the desire for profit motivates people to work People compete in their own self-interest Individuals have the right to own private property and to accumulate wealth through development and use of that property Most of the production, distribution, and ownership of the goods of a country should be in the hands of private individuals and companies

Competition & Freedom cont’d Capitalism benefits _____________, and not ______________. The government didn’t see itself as a protector of the rights of ordinary people. Capitalism is a foundation for _________ globalization today. The struggle is real! Some argue that the creation of wealth is good if the wealth is shared with the disadvantaged Others argue that the creation of wealth should not exploit workers or damage the environment Government role (capability of controlling capitalism) Redistributing wealth (via taxes) Supporting other values that people hold dear (through laws and social programs)

Full Steam Ahead Early international trade led to mercantilism, designed to help monarchs get rich Mercantilism led to capitalism, designed to help business people get rich Another foundation of historical globalization: industrialization

How did industrialization change people’s lives

Driving Industrialization Factors leading to Industrialization Context: Industrial Revolution in England https://www.youtube.com/watch?v=OF7-vN-aLOM Cottage industry  Factory work The Inventions (p. 136) Steam engine (Al Jazari, a Muslim engineer) spearheaded this way back when!) https://www.youtube.com/watch?v=JZDe9DCx7Wk Factories – Consequences?

The Effects on Working People Working Conditions during the Industrial Revolution: https://www.youtube.com/watch?v=eHOEau-QV1M Entrepreneurs owned factories, machinery, tools and materials Hired cheap labour – more profit! No political power, no laws to protect them Who was the early industrial system rewarding, why?

Review Questions (Chapter 8) Explore the Issues #2, p. 131 #1-2, p. 134 #2, p. 140 Global Connections #1, p. 139