How did people economically respond to the changes & abuses of the Industrial Revolution? New Economic theories were created to address the reasons for the growing gap between the rich and poor…

New Economic Theories are a Reaction to Capitalism and the Industrial Revolution. Capitalism – Private ownership based on competition- created a large gap between rich and poor Monopoly or Trusts – One business control of an industry. Carnegie Steel, Standard Oil, ATT. Problem: Lack of competition. Powerful!!!

Bourgeoisie (middle class the owners Bourgeoisie (middle class the owners. Different from today) Those who owned factories /major industries and means of production lived well, Proletariat the Industrial worker was exploited over worked, under paid had bad conditions lived in tenement housing. Government supports the Bourgeoisie.

… socialism rejected capitalism Socialists argued that the government should plan the economy by controlling factories, farms, railroads, mines, & important industries People still had choice and could own small business of their choice

Karl Marx introduced a radical form of socialism called communism Marx & Friedrich Engels wrote The Communist Manifesto which predicted a war between the “haves” & “have nots” Marx encouraged workers to Violently overthrow owners, seize control of factories and distribute goods evenly, & create economic equality for all. Goal create a classless society

Communist Revolution Propaganda Posters