Factors of Production Land - space good for producing/using resources Labor- population was growing because so was the food supply
Factors of Production Capital- funds for investing in business Entrepreneurship (human capital) - people with ideas and skills
Enclosure Movement Wealthy landowners bought up smaller farms and combined them More efficient farming (improved land) Kicked people off their farms and sent them to cities (increased labor supply)
Factories Made goods (mostly cloth) with machines – mass production Much faster than cottage industry- practice of producing goods in one’s home Long, hard, sometimes dangerous work days
Industry Comes to America Samuel Slater, mill worker, emigrated illegally to America Built a spinning machine from memory
Economic Ideas Laissez-faire: “leave it alone” Adam Smith said the government should leave business alone Market economies have few or no government regulations
Thomas Malthus Said population would always grow faster than food production, leading to endless starvation and misery
Social Inequality Some entrepreneurs (including bankers) became fabulously wealthy Called “robber barons” because they took advantage of workers “captains of industry” because they helped the economy grow
Strongly Agree, Agree, Disagree, Strongly Disagree Inequality is a problem for societies. Specifically, it is a problem in democratic societies.
SA/A/D/SD An ideal society is one where everyone contributes what they can and takes what they need.
Socialism Robert Owen’s idea Government or society as a whole should collectively own property and industry, for the good of everyone Set up first “utopian” communities in Scotland and Indiana
SA/A/D/SD Americans have equality of opportunity.
Communism Karl Marx’s idea (wrote Das Kapital with Fredrick Engle) Capitalism leads to inequality Eventually, workers will revolt and control the government and the economy
SA/A/D/SD If someone is not successful in life, it is because they are lazy.
Social Darwinism Idea that some people are more “fit” than others, so they will prosper Based loosely on Darwin’s natural selection Used to justify poverty and racism
Gender and Industry Lower class: women worked outside the home (improvement for some) Middle Class: “Separate spheres” - work and home were not the same thing anymore Men worked (in immoral business world) Women were at home (teaching morals to children)
Effects of Industrialization Urbanization: more people moved to cities Middle class grew Overall, standard of living increased Middle class had more free time (leisure)