Reform Movements during the Industrial Revolution How did the idea of Capitalism cause reform movements during the Industrial Revolution?

Adam Smith Capitalist Laissez-Faire Economics & Capitalism Laissez-Faire is an economic philosophy that favored letting owners set working conditions without interference from the government A British economist named Adam Smith defended Laissez-Faire economics in his book The Wealth of Nations Smith argued that this system encourages competition, which forces businesses to make a better product – widely used during the IR Smith argued the law of supply & demand will regulate this system & prices This system known as capitalism gives people the opportunity to work hard & make money Some argued during the IR that Capitalism doesn’t protect workers & encourages greed Factory owners were making all of the money workers very little! Adam Smith Capitalist

Utilitarianism John Stuart Mill Because of the growing income gap people began to modify Smith’s Capitalist ideas Jeremey Bentham argued that people should judge ideas, actions, and institutions on their utility or usefulness for the majority Government policy should promote the greatest good for the greatest number of people John Stuart Mill would lead the Utilitarian movement in the 1800s Mill questioned unregulated capitalism (no govt input) Mill thought it was wrong that many workers were very poor and sharing none of the profit Mill wanted government policies that would lead to a more equal division of profits Mill also wanted reforms for Women’s rights, education & prison system John Stuart Mill

Utopian Ideas Robert Owen Utopian British factory owner Robert Owen was shocked by the misery and poverty of the working class Owen built houses near his factory in Scotland and rented them out to his workers for low rates Owen prohibited children under 10 from working in the factories and provided free schooling In 1824, Owen traveled to the US and tried to set up a Utopian system in Indiana New Harmony, Indiana only lasted for three years but did inspire better communities for workers Robert Owen Utopian