Chapter 9 Section 4 Reforming the Industrial World Objective: Summarize the economic, social, & political reforms that arose from the Industrial Revolution Vocabulary: Laissez Faire, Adam Smith, Capitalism, Utilitarianism, Socialism, Karl Marx, Communism, Union, & Strike New: Should the government have control over what companies can or can not do? Provide an example of when this might occur. Review: What were the two major inventions during the Industrial Revolution? What is a corporation? Give an example of one.

Setting the Stage Business leaders believed the government should stay out of business & economic affairs Reformers, however, felt that governments needed to play an active role to improve conditions for the poor Workers formed labor unions & began to demand for more rights & protection Why would business owner want the government to stay out of their affairs?

The Philosopher of Industrialization Laissez Faire: economic policy of letting owners of industry & business set working conditions without interference Laissez Faire economist believed that government regulations only interfered with the production of wealth Adam Smith believed that economic liberty guaranteed economic progress Adam Smith’s believed in the 3 natural laws of economics (law of self-interest, law of competition, & law of supply & demand) “Let people do as they please” Wrote the Wealth of Nations self-interest – people work for their own good Competition – competition forces people to produce a better product Give an example of two businesses that compete for your attention. Supply & demand

Check for Understanding Give an example of 2 rival businesses that compete for your attention. Sentence Starter: Two rival businesses that compete for my attention are ______ & ______.

The Economists of Capitalism Capitalism: an economic system in which the factors of production are privately owned & money is invested in business ventures to make profit Belief that there is a permanent underclass that would always be poor In a capitalist society they believed that creating minimum wage laws & better working conditions would upset the free market, lower profits, & undermine the production of wealth in society Belief that wars & epidemics kill off the extra people or more people would be miserable With scare resources prices go up if there are abundant resources prices go down Do you believe you will always have people who will be poor or do you think we can have equality for everyone in the world? Why or why not?

The Rise of Socialism Utilitarianism: theory that government actions are useful only if they promote the greatest good for the greatest number of people They questioned the idea of unregulated capitalism Utilitarians pushed for reforms in the legal & prison systems as well as in education People should judge ideas, institutions, & actions on the basis of their utility or usefulness Wanted the government to do away with great differences in wealth

Utopian Ideas & Socialism Robert Owen took an active approach to reforms, he improved working conditions for his employees He founded a cooperative community called New Harmony in Indiana, hoping it would become a Utopia “perfect living place” Socialism: factors of production are owned by the public & operated for the welfare of all Socialist believed that government control of factories, mines, railroad, & other key industries would end poverty & promote equality

Marxism: Radical Socialism Karl Marx introduced the world to a radical type of socialism called Marxism Karl Marx & Friedrich Engels wrote the Communist Manifesto They argued that human societies have always been divided into warring classes (Bourgeoisie vs. Proletariat) According to Marx & Engels, the Industrial Revolution enriched the wealthy & impoverished the poor Give an example of how the industrial revolution enrich the wealthy & impoverish the poor? The workers have nothing to lose but their chains

The Future According to Marx Marx believed the capitalist system would eventually destroy itself Communism is a form of complete socialism in which the means of production (all land, mines, factories, railroads, & businesses) would be owned by the people They believed that economic forces alone dominated society however time has shown other factors also influence it The working class would revolt Religion, nationalism, ethnic, loyalties, & desire for democratic reforms play a factor.

Labor Unions To press for reforms, workers joined together in voluntary labor associations called Unions Unions engaged in collective bargaining & negotiations between workers & their employers If factory owners refused the Union’s demands, they would strike (refuse to work) Skilled workers had the upper hand in unions because they were harder to replace The government originally outlawed unions Why would strikes work & why would they not work? What is something you would strike for?

Reform Laws Eventually, reformers & unions forced political leaders to look into the abuses caused by industrialization Parliament began investigation child labor & working conditions in factories & mines They passed several laws protecting women & children Limit working hours to 10 hrs for woman & children

Check for Understanding Why did they need to limit the amount of hours children were working? Sentence Starter: They needed to limit the amount of hours children were working because ______.

The Reform Movement Spreads Parliament finally abolished slavery in the British Empire in 1833 Some people who were antislavery activists were morally against it but others saw it as an economic threat Slavery was finally abolished in the United States in 1865 Slavery ended in 1888 in Brazil Why did slavery ended in the United States?

The Fight for Women’s Rights Women led reform movements to address the pay gap & other pressing social issues Women began to wonder why their own rights should be denied on the basis of gender Public education & prison reform also ranked high on reformers’ lists They fought for free education & providing prisoners with the means to lead to useful lives upon release