Section 3-Industrialization Spreads

Industrial Development in the United States During the War of 1812 the British blockade forced the U.S. to develop their own industry Luckily the U.S. had the same resources that allowed Britain to industrialize – Fast flowing rivers – Deposits of coal and iron ore – Supply of laborers

Industrial Development in the United States U.S. industrialization began in the textile industry – Britain wouldn’t let mechanics, tool makers, or engineers leave the country 1813-Francis Cabot Lowell and four other investors opened up a factory that mechanized every stage of cloth manufacturing – Young women began to work in these factories earning more money and finding independence

Industrial Development in the United States Later Industrial Expansion- – The U.S. largely agricultural until after the Civil War ended in 1865 Technological Boom- – Light bulb and the telephone met the demands of a booming population

Industrial Development in the United States The Rise of Corporations- Stock- Certain rights of ownership sold to help entrepreneurs open or expands their business Corporation-A business owned by stock holders who share in it’s profits but are not personally responsible for it’s debts

Continental Europe Industrializes European businessmen yearned to replicate the “British miracle” of rapidly manufacturing goods The Napoleonic Wars had halted trade, interrupted communication and caused inflation in Europe Continental Europe’s industrialization began in Belgium

Continental Europe Industrializes Germany Industrializes- – Germany was politically divided – Economic isolation and scattered resources hampered industrialization – Around 1835 Germany began to copy the Britain by importing British equipment and engineers They also sent their kids to England to learn industrial management

Impact of Industrialization The Rise of Global Inequality – Global trade was strengthened but the gap between the industrialized and unindustrialized widened This led to the increased colonization of smaller countries for natural resources – Due to imperialism European economies were based on industry while Asian and African economies were still based on agriculture

Bell Work Tuesday 4/15 Look in your book beginning on page 734 and begin reading to find the answers 1.What were Adam Smith’s three natural laws of economics? 2. What kind of society did early socialists want? 3. Why did workers join together to form unions?

Section 4-Reforming the Industrial World

The Philosophies of Industrialization Laissez-faire-An economic policy of letting owners of industry and business set working conditions with out (gov.) interference – French for “let people do as they please” Capitalism-An economic system where the factors of production are privately owned and money is invested to make a personal profit

The Philosophies of Industrialization Adam Smith-Professor at the University of Glasgow (Scotland) wrote the Wealth of Nations in 1776 – His book defended the idea of a free economy, saying “economic liberty guaranteed economic progress”

The Philosophies of Industrialization Adam Smith’s Three Natural Laws of Economics – The Law of Self-Interest People work for their own good – The Law of Competition Competition forces people to make a better product – The Law of Supply and Demand Maximum amount of goods will be produced at the lowest possible price to meet the needs of the people

The Rise of Socialism Utilitarianism-The theory that people should judge ideas, institutions, and actions on the basis of their utility and usefulness Socialism- An economic system where the factors of production are owned by the public and operate for the welfare of all

Marxism: Radical Socialism Marxism-Radical form of socialism introduced by Karl Marx in a 23 page packet called “The Communist Manifesto” – Felt the Industrial Revolution enriched the wealthy and improvised the poor. He felt the workers would overthrow the owners Marx felt communism was the “complete form of socialism”

Labor Unions and Reform Law Unions- Voluntary labor associations in which workers joined together to press for reforms Strikes- A collective refusal to work – Workers will usually strike until their demands for the improvement of working conditions or higher wages is met

Labor Unions and Reform Law Laws that Reformed Working Conditions in England – Factory Act of 1833 Made it illegal to hire kids under 9 to work in the factory – Kids 9-12 couldn’t work more than 8 hours a day – Kids couldn’t work more than 12 hours a day – Mines Act Women and children could no longer work underground in the mines – Ten Hours Act of Limited the work day of women and children in factories to 10 hours

The Reform Movement Spreads The Abolition of Slavery- – The British abolished slavery in 1833 – The American’s abolished slavery 1865 – Puerto Rico abolished slavery 1873 – Brazil abolished slavery 1888