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)