Section 4 Notes Reforming the Industrial World January 30, 2017

The Philosophers of Industrialization Laissez-faire- Letting owners of industry set their own working conditions without interference. Favors a free market (Unregulated by gov) Argued that nations do not grow wealthy by high tariffs on foreign goods.

Adam Smith- Wrote the Wealth of Nations Economic Liberty guaranteed economic progress. Believes in the 3 natural laws of economics

1. Law of self interest- People work for their own good. 2. Law of competition- competition forces people to make better products. 3. Law of supply and demand- Enough goods would be produced at the lowest possible price to meet demand in a market economy.

These ideas will be supported by economists Eventually get the idea of Capitalism- when the factors of production are privately owned and money is invested in business ventures to make a profit.

The Rise of Socialism Though many theorists believed in less gov. intervention there were some that did not. These thinkers believed that the wealthiest classes and govt. should take action to improve peoples lives.

Utilitarianism- Idea introduced by Jeremy Bentham People should judge ideas, institutions, and actions on the basis of their usefulness. Govt. promote greatest good for its people. Cried for government to do away from great differences in wealth.

Socialism- Where the factors of production are owned by the public and operate for the welfare of all. This theory grew from an optimistic view of human nature Argued the govt. should plan the economy and not the free market

Marxism: Radical Socialism Karl-Marx introduced the most radical form of socialism: Marxism Wrote down their ideas in the “Communist Manifesto” “The history of all hitherto society, is the history of class struggles”

Argues that human societies have divided into warring classes. Believed capitalism would destroy itself. The working class would revolt and create economic equality for all. Would then take control of the govt. and class society along with govt. would wither away and die.

Marx will call this final phase “pure communism”- a form of complete socialism in which the means of production were owned by the people.

Labor Unions and Reform Laws Unions will form Strikes will commence Reform laws will be passed 10 hours act of 1847

The Reform Movement Spreads Reform movements will rise up in response to negative impacts of industrialization. Will abolish slavery in 1833 )William Wilberforce) Women will begin to slowly speak out in society wanting what?