Key Concepts 5.1 V. A-D

The Wealth of Nations Adam Smith Natural freedom sovereigns defend the country from foreign invasion, protect citizens from injustice or oppression, and maintain public works laissez-faire let people do as they choose distribution of income, wages of labor, profits of stock, and rent of land

The Wealth of Nations Society is one immense system of cooperation… generous wages = more productivity price of an item = the amount of labor put into it

5.I.V The development and spread of global capitalism led to a variety of responses. In industrial states many workers orgnized themselves to improve working conditions, limit hours, and gain higher wages, while other opposed capitalism exploitation of workers by promoting alternative visions of society.

Proletarianization you must understand this to understand Marx As workers enter wage economy, they lose control over the means of production (tools & equipment), and of their trade. Factory owners provide starter money, machinery (means of prod.), and raw materials, all the worker gives is the labor. For their labor they are paid, at the end of the day they have money, and with that they must provide (purchase, not make) everything they need. In order to protect their interest the proletariat began organizing into labor unions Labor unions often led to new political ideologies

Chartism (Early British Labor Union) Late 1830s artisans politically organize to protect interests Called for univ. male suffrage, annual elections of H of C, secret ballots abolition of property requirements for Members of the H of C

Utopian Socialism Not focused on class struggle Believed something was wrong, Felt paternal action was the appropriate response. Lacked any meaningful political following. Heavy focus on economic planning, economic equality, state control of property Questioned values of capitalistic framework. A belief in industrialization, and its proper use to eradicate poverty

Socialism Radical political theory that states that ALL humans are equal Different groups will argue about how to achieve this equality and the gov’t role in achieving this equality Equality doesn’t necessarily mean economic equality Supports capitalist economics and private ownership

Marxism Political theory developed by Karl Marx 1848 Stated that the proletariat (workers) would overthrow the bourgeoisie (wealthy) and social classes will cease to exist Marx didn’t promote this, he just said it would happen You cannot have a Marxist Revolution without industrialization People will take this theory and adapt it to their own needs and create political systems based on the idea of classless societies (Communism in many forms) Gov’t control of economics is key to all Marxist systems This is opposite of Socialism that supports capitalist economics

5.I.V The development and spread of global capitalism led to a variety of responses. B. In Qing China and the Ottoman Empire, some members of the gov’t resisted economic change and attempted to maintain preindustrial forms of economic production.

Reaction to Capitalism by the Ottomans Trade had transferred to Indian Ocean or Atlantic Ocean Imported European goods, but didn’t export much Became financially dependent on Europeans Couldn’t pay interest on loans and economics turned over to foreign powers

Reaction to Capitalism by the Ottomans Extraterritoriality Europeans in other territories were under European laws, not native laws Europeans set up their own banks and commercial enterprises Seemed as a humiliation for the Ottomans

Reaction to Capitalism in Qing China Self Strengthening Movement Gentry tried to combine Confucian ideals with western technology Didn’t do much They tried to maintain agricultural society and industrialize at the same time Empress dowager Cixi didn’t support the movement economically

Reaction to Capitalism in Qing China Foreigners Germans had mineral and railway rights in Shandong France in the south GB in the Yangzi River valley Japan in the southeast Russia in Manchuria Only middle China was free of foreigners

Hundred Days of Reform (Qing China) Emperor Guangxu Goal was to remake China into an industrial power Had to let go of agrarian traditions Constitutional monarchy Civil liberties Better education system Modernize military Imperial household reacted violently

End of the Hundred Days (Qing China) Empress Cixi nullified reforms Arrested the emperor and held him in the Forbidden City Executed leaders

5.I.V The development and spread of global capitalism led to a variety of responses. C. A small number of states, gov’t promoted their own state-sponsored visions of industrialization.

Reaction to Capitalism in Russia Sergi Witte-Finance minister Railway construction High protective tariffs Invited foreign investors Created usual social movements associated with industrialization

Emancipation of Serfs (Russia) Serfs were free, but worked on Mirs Mirs were village systems Peasants had to pay tax to nobility Ended up in debt

Reaction to Capitalism by Meiji Japan Gov’t subsidizes Brought in foreign advisors Improved transportation New educational system focused on science Close relationship btwn. Business owners and Gov’t

Reaction to Capitalism by Meiji Japan Women were allowed to be educated New jobs Harsh treatment in coal mines and textile mills Miners who tried to escape were sometimes shot No emphasis on human rights

5.I.V The development and spread of global capitalism led to a variety of responses. D. In response to criticism of industrial global capitalism, some governments attempted to prevent rebellions by promoting various types of reforms .

German Reforms Bismarck saw Socialism as a threat to German unity so he passed laws outlawing their right to assemble and publish 1883: Compensation during illness; health care 1884: Accident insurance Law 1889: Old Age Pension for workers over 70 Unemployment

English Factory Act of 1833 Issue: Child labor No child < 9 could work workday limited education must be provided @ factory owner’s expense. (2 hours a day) **major shift in education - now teachers are resp. for education not parents**