Effects of Industrialization – Patterns of Change and the spread of industrialization Unit Enduring Understandings 2.Changes in technology and exchange during the 18 th and 19 th centuries led to the social and economic changes around the world that are still relevant today. 5.Technology and industrial advancement can alter existing social and economic systems. What is the proper role and responsibility between government, capital and labor? Agenda – 1.Reminder – benchmark #1 for Core 1 due tomorrow – continue research on your country combination. 2.Complete p 11 to understand how industrialization led to the creation of new ideologies 3.Complete p 12 - read actively to understand how industrialization led to the creation of new ideologies and how the idea of the division of labor was so instrumental in advancing industrialization. 4.Log onto mrksmodernworld – under documents in unit 3, read your assigned philosopher, take notes on his main ideas, discuss with others and compare to Smith’s view of capital, labor and government – how do these works illustrate today’s EU’s?

Industrialization Spreads and Leads to an Age of Reform

Continental Europe  At first, war and unrest in Europe delay the growth of industry (i.e., French Revolution and Napoleonic Wars)  Industrialization would often occur in a given region rather than throughout an entire country, as in Britain’s case  Not all countries had the necessary resources or factors of production

Worldwide Impact  The Industrial Revolution widens the gap between more-developed and less-developed nations  Industrialized countries exploit overseas colonies for resources and markets (basis for imperialism)  Over time, standards of living rise in the industrial nations

An Age of Reforms Main Idea: The Industrial Revolution led to economic, social, and political reforms.

Differing Philosophies  The Industrial Revolution changes the structure of society, opening up a gap between rich and poor  Government action can now have a larger impact on economic activity of more people than ever before  New philosophies emerge regarding the role of the government in an industrialized society

Differing Philosophies  Laissez-faire thinkers (Adam Smith) support a free market and oppose government regulation  These ideas are the basis for capitalism  Other thinkers oppose laissez-faire policies and favor government efforts to improve people’s lives  These form the basis of socialism  Still others do not want to see changes in government – they like the old ways of monarchy and aristocracy  These form the traditional conservatives

Rise of Socialism  Reformers sought the establishment of a new economic system called socialism  In socialism, the factors of production are owned by the public and operate for the welfare of all  Socialists believe the government should actively plan the economy and promote equality between all people

Karl Marx  German journalist who introduced the world to a radical type of socialism  Believed that history is controlled by economics and class struggle  The future would lead to communism

Communism  Capitalist society would eventually destroy itself, as the proletariat would revolt  Workers would bring about economic equality for all and a classless society would form with the absence of any government  Private property would cease to exist

Unionization and Reform  Workers organize unions to raise wages and improve conditions  Unions eventually become established and legal  Reform laws are passed in Britain and the United States to limit child labor and set work hours

Reform  The abolition movement helps to end slavery by the end of the 1800s  Free public education for all children

The Economic philosophers 1.Adam Smith – The Wealth of Nations 1.Economic liberty guarantees economic progress 2.Government needs to stay out of economics because: 1.Buyers will buy 2.Sellers will sell 3.Each will participate in economics out of their own self- interest 4.Harmony will results 2.Thomas Robert Malthus 1.Population grows too fast for food supply 2.Epidemics and war are good to control population 3.Most people will be poor, but too many people and there will be too many poor. 1.There should be little charity, because the poor will become dependent and further drive down wages, making the poor poorer

The Economic philosophers 3.David Ricardo 1.Another capitalist proponent 2.Free trade is good for all 3.Government intervention will hurt profits and productivity 4.There will always be an underclass, and as Population grows, so will wages be driven down, making the poor, poorer. 4.John Stuart Mill 1.Leading thinker of Utilitarians 2.Wealth and inequality are bad and only gov’t laws and more equally distribute wealth and help the poor 3.Believed that cooperative agriculture and the rights of women should be promoted 4.Workers should be able to elect their management – called economic democracy

The Economic philosophers 6.Fournier and Saint-Simon 1.First major socialists 2.Believed that the state should own all of the means of production so that all can benefit, not just the capitalists. 3.Free-markets exploit the workers for the benefit of the owners 5.Robert Owen 1.Factory owner who believed workers need help 2.Provided low-rent housing for workers 3.Provided school for workers’ children 4.Prohibited young children from working in his mills 5.Founded a utopian community in the US – failed after 3 years.

The Economic philosophers 7.Marx and Engels – the first Communists 1.Capitalism is necessarily exploitive, making workers angry and poor. 2.Capitalism will destroy itself as workers become more and more angry, they will rise up and throw down the capitalists and spread the wealth to all 3.The end result will be utopian democratic communism where everyone will work for the benefit of everyone – “From each according to his ability, to each according to his need.”

The Economic philosophers and the reformers 8.William Wilberforce 1.Slavery and the slave trade are evil and need to be abolished by law 2.Parliament abolishes the slave trade in 1807 and slavery in the entire empire in Jane Addams 1.Wanted to help poor and working women so set up Hull House, a settlement house that provided social welfare help to poor and working women, including food, shelter and child care 10.Horace Mann 8.First proponent of public education for all children