New Ideas

Unit Objective Learning about the new ideas that resulted from dissatisfaction with industrialization or advances caused by it

The 17-1800’s were one of the biggest transition periods in World History for three important reasons: 1.) FROM ROMAN CATHOLIC DOMINATED SOCIETY TO ONE OF MANY CHOICES (REFORMATION)

2.) FROM LARGELY UNEDUCATED SOCIETY TO EDUCATED AND CULTURED (RENAISSANCE) 3.) FROM RURAL AGRARIAN TO URBAN INDUSTRIAL (INDUSTRIAL REVOLUTION)

Impact of Industry on Society Industry created great wealth for the middle class (factory owners) but great hardships for the working class (poor working conditions, low pay, long hours, etc.)—the question that faced society was what to do about it? There were two options.

Option #1: Nothing should be done about it Laissez-Faire economics:   GOVERNMENT SHOULD LEAVE BUSINESS ALONE (GOVERNMENT INTERFERENCE COST BUSINESSES MONEY AND WOULD BE BAD FOR ECONOMY)

Adam Smith (Wealth of Nations): World’s most famous economist; disagreed with mercantilist beliefs of his time (that the strength of a nation’s economy depended on its ability to balance trade)

National power was more important than individual welfare Mercantilist Beliefs Gold or Money = Wealth National power was more important than individual welfare Foreign trade must be strictly regulated because it is the source of most gold and money

Adam Smith’s Beliefs 1) LABOR = WEALTH 2) INDIVIDUAL WELFARE SHOULD BE   2) INDIVIDUAL WELFARE SHOULD BE PROTECTED (PEOPLE SHOULD FOCUS ON SELF-INTEREST BECAUSE THEN EVERYTHING WOULD WORK OUT IN THE END)

3) COMPETITION & FREE MARKET ECONOMY WOULD GUIDE RESOURCES TO THEIR MOST PRODUCTIVE USES WITHOUT GOVERNMENT INTERFERENCE

In summary… People who supported a Laissez Faire approach to regulating the economy (meaning the government should leave business alone) believe the free market would make necessary changes happen without a need for the government to force it FOR EXAMPLE: It isn’t necessary for the government to set or raise minimum wages because companies will be raise wages on their own as they compete with each other for good employees

What is wrong with that way of thinking about business?

Option # 2: Government should regulate business closely to protect society (workers and consumers) Some, based on the complaints of workers and consumers, believed the government should be more active in regulating business EXAMPLES: Laws restricting or banning monopolies, laws protecting individual liberties, taxes that would more equally distribute wealth

Socialism and Communism (we’ll discuss these later) greatly regulate the economy and are the other end of the spectrum from Laissez Faire

Which option makes more sense to you Which option makes more sense to you? Option 1 (Laissez Faire economics) or Option 2 (Close government regulation of the economy)

Which way has America gone (Laissez Faire economics or close regulation of business)?

SOMEWHERE IN BETWEEN—WE DO REGULATE BUSINESS BUT NOT AS CLOSELY AS IN SOCIALISM OR COMMUNISM (BUSINESSES ARE FREE TO MAKE MOST DECISIONS ON OWN BUT THERE ARE LIMITS OR LAWS TO FOLLOW)

New ideas in Science and Medicine Cell Theory: ALL LIVING THINGS ARE MADE UP OF CELLS Charles Darwin (Evolution)  

Louis Pasteur: DISCOVERED BACTERIA & THAT IT CAUSES INFECTIOUS DISEASES; NEW BREAKTHROUGHS IN VACCINATIONS New anesthetics and sterilization methods in surgery

Atomic Theory: Matter is made up of atoms Sociology: Study of human behavior in groups   Psychology: Study of human behavior in individuals -Ivan Pavlov: Researched the effect of stimuli on behavior -Sigmund Freud: Researched the effect of the unconscious mind on behavior

Pavlov and Freud