Reforming the Industrial World Chapter 9, Section 4 Notes 11/13/12

The Rise of Capitalism Adam Smith- economist wrote Wealth of Nations, Believed in Laissez-Faire- a “free market” economy, where the government “stay’s out of business”

Adam Smith

The Rise of Capitalism Capitalism: an economic system in which the factors of production are privately owned and money is invested in business ventures to make a profit

Capitalism and Industry Capitalists/Entrepreneurs thrive on capitalism Creates unfair distribution of wealth among social classes Social Darwinism- idea of “survival of the fittest” applied to society. Some people are rich, some are poor and that is how society is meant to function

New Economic Philosophies Many new social critics did not believe in the capitalist system New philosophies began to emerge Utilitarianism Utopian Ideas Socialism

Utilitarianism- The greatest good for the greatest number of people Utopian Ideas- Factory owners, the wealthy should take care of their employees, provide a better wage/life. Socialism- factors of production are owned by “the people” (aka the government)

Karl Marx

Communism= Radical Socialism Karl Marx wrote The Communist Manifesto in 1848 Communism: a form of complete socialism, all factors of production are owned by the “people”. In a communist society, no social classes exist, all are equal

British Workers Gain Rights The Reform Movement in Britain British Workers Gain Rights Factory Act of 1833- made it illegal for children under age 9 to work Mines Act of 1842- woman and children could not work underground Ten Hours Act of 1847- limited workday to ten hours for women and children

Labor Unions Workers were able to get their voices gain rights through forming unions, voluntary associations of workers joining together Unions bargained for better conditions through tactics like strikes, where the whole company would refuse to work until demands were met.

Abolition of Slavery William Wilberforce, member of Parliament, fought to end slave trade in British colonies

British Parliament ends slave trade in the West Indies (Caribbean) in 1807 Officially bans the whole practice of slavery in 1833

Woman’s Rights Movement After end of slavery, woman began to question their own lack of rights in society Woman could make more money in factories than they could weaving at home, but still earned about 1/3 the salary of a man.

Radical Socialism = Communism Karl Marx Communist Manifesto-1848 Communism: a form of complete socialism, all factors of production are owned by the “people”. In an ideal communist society, no social classes exist, all are equal

Capitalism versus Communism Adam Smith Karl Marx Protection of Private Property Abolition of Private Property Very Little Government intervention in Business (laissez-faire) Government run business (protection for the worker) Low Taxes to promote spending in society A heavy progressive income tax and abolition of inheritance It is in human nature to better his condition and the invisible hand drives society Do away with classes in society by having a proletariat revolution against the bourgeois