Industrial Revolution Negative Changes A. Child labor B. Unsafe Working conditions C. Overpopulated cities (from thousands to millions.) 1. Unsanitary living conditions a. Disease b. Rats, filth c. Poor living conditions d. People living in slums

1. Depleting natural resources D. Environment 1. Depleting natural resources 2. Polluting water supply E. Growing gap between the rich and the poor

II. Positive Changes A. Labor laws 1. Limiting working hours, age and safety B. Collective Bargaining 1. Labor unions a. Striking for improvements b. Better working conditions c. Better pay C. Growing Middle class 1. New wealth, better standard of living D. New Tax Revenue 1. Public education 2. Improved infrastructure (police, sanitation, etc.)

III. Capitalism vs. Socialism A. Adam Smith- Laissez Faire, Capitalism B. Karl Marx- Communism, Socialism 1. Constant struggle between rich and poor. 2. “Haves” Bourgeosie and “Have Nots” Proletariat 3. “The proletarians have nothing to lose but their chains. They have a world to win. “Workingmen of all countries, unite.”

Capitalism Positives: Adam Smith- laissez faire Privately owned business. Entrepreneurs are rewarded for their risks. Goods are improved, competition breeds better products at lower costs. Anyone can become rich! Negatives: Social Darwinism- survival of the fittest used for society. Wealth of one built on the backs of many. Gap between the rich and poor grows wider.

Response to Capitalism Socialism- the means of production (land, capital, raw materials and factories) should be owned and controlled by society. Communism- Karl Marx: Believed there is a constant struggle between the “haves” and the “have-nots.” “Workingmen of all countries, unite.” Workers (proletariat) were the productive class. He wanted the people to own everything, no private property, no classes. The idea is that “from each according to his ability, to each according to his need.” Wrote book, Communist Manifesto