Technological advances in agriculture led to a need for fewer workers on farms. E. Napp

Technological advances in industry led to a completely new way of working. E. Napp

Machines were too large to fit in homes. Machines were also too expensive for the average person to afford. E. Napp

Home-based manufacturing (the domestic or cottage system) was replaced with the factory system. E. Napp

Workers came to live near factories. Factory towns quickly turned into cities. E. Napp

and children, as young as Men, women, and children, as young as five, worked six days a week in factories. E. Napp

There were no safety devices on machines. No work – No pay There were no government agencies to help the unemployed. E. Napp

A new economic theory had emerged. It was known as laissez-faire. This French term means “let them (business owners) do as they please.” E. Napp

Laissez-faire had been advocated by Adam Smith. Smith had explained how free market economies function. He introduced ideas like supply and demand. E. Napp

Adam Smith believed that markets would fix themselves when governments did not intervene. E. Napp

In other words, if prices were too high, people would stop buying. Business owners would then lower prices to encourage people to start buying again! E. Napp

But what about child labor? Business owners made great profits using child labor. Would they stop the practice or would the government need to regulate labor in the marketplace? E. Napp