Ch.25.4 The Age of Reforms (old book) TMHS

The Philosophers of Industrialization Laissez – faire Economics Laissez faire is an economic policy where there is no regulation (what does that mean?) Advantages/disadvantages? Adam Smith’s The Wealth of Nations defended the idea of a free market economy Believed govt. tariffs stifled economies

Capitalism Money invested in businesses with the goal of making profit Free market economy Competition (best goods at lowest prices) Supply and demand Adam Smith, Thomas Malthus, David Ricardo

Positives and Negatives of Capitalism Positives: competition led to progress Negatives: unequal distribution led to social problems

Utilitarianism Greatest good for the greatest number of people Jeremy Bentham

Rise of Socialism Utilitarianism Jeremy Bentham argued that people should judge ideas, institutions, and actions on the basis of their utility (usefulness) John Stuart Mill led the utilitarian movement in the 1800s Mill wanted govt. to lessen disparities in wealth

Socialism Command economy Businesses publicly owned (not privately owned) and operate for the welfare of everyone Government should plan the economy, controlling major industries

Socialism and Marxism Socialists argued that the government should plan the economy Advocated govt. control of factories, mines, etc.

Karl Marx Communism- complete form of socialism Believed there should be no class system, everyone is equal Thought capitalism would destroy itself Command economy

Communism All means of production are owned by the people. Private property does not exist. All goods and services are to be shared equally.

4. The Communist Manifesto Karl Marx introduced a radical new socialism called Marxism He and Friedrich Engels wrote The Communist Manifesto Class warfare, Bourgeoisie, Proletariat Predicted workers would overthrow owners

Unionization and Legislative Reform The Union Movement A union is an association that spoke for all the workers in a particular trade Negotiations between ownership and labor known as collective bargaining

Unions Workers joined together for reform Workers engaged in collective bargaining Wanted better working conditions and wages Workers would strike if demands weren’t met

Reform Laws Factory Act of 1833 – British law that outlawed the hiring of children under the age of 9 (limited hrs. until 18) The Ten Hours Act of 1847 – Limited women and children’s factory workdays to 10 hrs.