The Industrial Revolution Capitalism, Labour, and the Rise of Alternative Economic Systems

Capitalism Review You know that MERCANTILISM is an economic system designed to increase a monarch’s wealth; CAPITALISM is similar… It is an economic system designed to increase an individual’s wealth It requires a relatively FREE MARKET, OPEN COMPETITION, the PROFIT MOTIVE, and PRIVATE OWNERSHIP

The Industrial Revolution The GOOD: INVENTIONS The steam engine, trains and railroads all led to the easy transport of goods between cities and towns Textiles – spinning jenny and power looms moved clothing production to factories from cottage industries. The new machinery produced cloth of a consistent quality at a fraction of the cost of handmade cloth, thus reducing the costs to ordinary people.

The Industrial Revolution The BAD: EFFECTS ON WORKING PEOPLE Some people’s lives improved because they could afford to buy less expensive goods Unhealthy and unsafe working conditions for men, women, and children who were employed in the coal mines, cotton mills, and textile factories. Because these people had no political power, the government did not put laws in place to protect them.

WHO WAS THE EARLY INDUSTRIAL SYSTEM REWARDING AND WHY? Question… WHO WAS THE EARLY INDUSTRIAL SYSTEM REWARDING AND WHY?

New Philosophies In A Time Of Change Different individuals or groups reacted to the Industrial Revolution in different ways. How people viewed the changes that resulted from industrialization depended on whether they benefited or suffered from them. Also, people began to vocalize their differing opinions on what society should be like.

Three Major Opinions LAISSEZ-FAIRE Many industrialists were entirely untroubled by the social problems that resulted from industrialization They saw few problems and believed that poverty was natural They thought that government should let the economy run on its own.

THE OTHER EXTREME SOCIALISTS: The Reformers were a group of people who believed that only the industrialists benefited from the Industrial Revolution This group attacked the whole concept of capitalism and felt that limited solutions were not enough. They wanted to see a transformed society were the rights of the working class were protected by law.

IN THE MIDDLE REFORMERS Between Laissez-Faire thinkers and Socialists stood the Reformers. They supported the capitalist system, but wanted government action to improve conditions for the workers. They believed that if workers were given the vote, they could use their numbers to force factory owners to improve employment and living conditions.