Industrial Revolution Economics

I. Labor Unions A. groups of workers that united to improve work conditions, protect wages and ensure fairness B. What did labor unions accomplish? 1. laws to prevent children from working in dangerous factories and mines 2. laws limiting the amount of hours a person can work 3. fair pay and safe work environment 4. if owners wouldn’t listen, then workers could go on strike GS# 24 25 26

C. Social Darwinism 1. based on Charles Darwin's theory of survival of the fittest 2. Herbert Spencer used it to explain why some people are rich and some are poor. 3. People in a society must compete for survival - the rich and educated will naturally become superior and the poor and uneducated will naturally become inferior GS#32

Capitalism individuals invest their capital ($) in their own private business in order to make a profit Other names free enterprise, private enterprise, market economy or laissez-faire economics Who controls ownership, production and price? Entrepreneurs – the Industrial Revolution needed these investors to build factories and pay workers (farms, business, factories) Who determines the demand for the goods? the people decide what they want GS#27

Positives competition creates fair prices, profits encourage hard work, freedom to make individual choice, gov’t stays out of your business Negatives no guarantee for employment, division in classes, no guarantee business will succeed GS#28

Would true Capitalist like minimum wage laws or labor unions? Why? This will lead to the creation of more future cows that can produce even more milk and more cows and you can become a millionaire….OR your first cow dies and you lose everything! Would true Capitalist like minimum wage laws or labor unions? Why?

Socialism where a country’s farms, factories, businesses and means of production belong to society (workers, common people) but are overseen by the gov’t Other names mixed economy Who controls ownership, production and price? society or the workers – are supposed to share in all responsibilities and profits Who determines the demand for the goods? society decides what is needed for the good of the group, it is about cooperation and not competition Karl Marx and Fredrick Engels they believed this would end unemployment and poverty because the gov’t would make sure everyone contributed to its success GS#29

Positives people work together, no unemployment, provide more opportunities, compensation on merit, no poverty, equal distribution of wealth Negatives no private ownership/business, little incentive to work hard, people don’t always get to do what jobs they want, limits to your success Proletariat “have-nots or workers” Bourgeoisie “haves or owners”

This is about sharing and having an equal distribution of wealth and an equal distribution of cows!

Communism a country's farms, businesses, and factories are owned and controlled entirely by the government, there is no private business Other names command economy Who controls ownership, production and price? government control everything Who determines the demand for the goods? the gov’t decides what the what the people need and when GS#33

Karl Marx “The Communist Manifesto” book stated capitalists get richer (owners) and the workers get poorer, the workers need overthrow owners and let the gov’t take over to end poverty and abolish class system Positives no poverty, no unemployment, no class system, everyone would be equal, gov’t provide food/shelter/work Negatives no personal freedom or ownership, everyone being equal doesn’t mean that it is nicer, gov’t controls your life, no incentive to work except that the gov’t will punish you GS#30 31

Communism It is like Socialism on steroids – where the gov’t forces you to do what they think is your part and they tell you what you need and can or can’t do Socialism Gov’t just makes sure everyone is doing their part, you may struggle but it will be a group effort

Gov’t takes your cows and then tells you when you will need the milk you have no say – even if you are really really thirsty!

Cowkimon

You have no freedom of choice You have no freedom of choice! You must do what the gov’t says or suffer the wrath haha!

III. The Spread of the Industrial Revolution In Britain, who was paying to build all the factories, railroads, canals and machines?

Eventually by 1900, three countries had overtaken England in industry - the US, Germany and Japan. GS#34

B. How could these countries surpass England? 1. Natural Resources – they had more natural resources, such as coal, iron, steel and crops a. More materials for factories and plenty of food for workers 2. Government Aid - in Britain, the government did NOT finance industry. However, in the US, Germany, and Japan governments helped finance heavy industry. #35

C. Advantages of being an Industrialized country 1. better technology 2. able to make more money 3. increase allies due to trade 4. faster/cheaper transportation 5. develop a stronger military #36