Reforming the Industrial World Ch. 9, Section 4

Capitalism Adam Smith & Wealth of Nations Economic liberty guarantees economic progress Laissez-Faire = “hands off” or “let do” Will be guided by an invisible hand 3 Natural Laws of Economics Law of Self-interest Law of Competition Law of Supply and Demand

Adam Smith Economic Freedom Gov’t should not interfere in the Economy

Adam Smith 3 laws of Economics 1. Self Interest – People will work for their own good 2. Competition – Competition forces people to better the product 3. Supply & Demand – Enough goods will be produced at the lowest price to meet the needs of the people

Thomas Malthus Population increases more rapidly than the food supply Wars & Diseases are needed to control the population

David Ricardo The poor will always be poor As population rises, more workers are created therefore decreasing wages

Capitalist opposed minimum wage, better working conditions Capitalism All factors of production are owned by individual people Thomas Malthus Population increases faster than food supply Need epidemics, war to prevent overpopulation David Ricardo There will always be an underclass Capitalist opposed minimum wage, better working conditions

Rise of Socialism Some believed those who are able should help the unable Utilitarianism – Jeremy Bentham People should evaluate everything on usefulness Govt. should promote greatest good for the greatest number of people Workers are not treated fairly; work hard for low pay and poor living conditions Government should work to end the large gap between rich and poor.

Rise of Socialism Socialism Socialism—factors of production owned by, operated for the people, by the people Govt. should plan economy, end poverty, promote equality Optimistic view of human nature, advocate change through right to vote Socialists think government control can end poverty, bring equality All can benefit from increased production, not just a few

Robert Owen Founder of Socialism Provided Low rent housing No kids under 10 worked Provided free schooling

John Stuart Mill Gov’t should control divisions in wealth Divide profits equally Women’s rights

Communism

Marxism: Radical Socialism Karl Marx Friedrich Engels

The Communist Manifesto Marx and Engels believe society is divided into warring classes Capitalism helps “haves,” the employers known as the bourgeoisie Hurts “have-nots,” the workers known as the proletariat Marx, Engels predict the workers will overthrow the owners

The Future According to Marx Marx believes that capitalism will eventually destroy itself Inequality would cause workers to revolt, seize factories and mills Communism—society where people own AND share the means of production Marx’s ideas later take root in Russia, China, Cuba

Unionization Unions—associations formed by laborers to work for change Unions negotiate for better pay, conditions with employers Sometimes they strike to pressure owners Workers in Britain, U.S. must fight for right to form unions Union goals were higher wages, shorter hours, improved conditions

Reform Laws British, U.S. laws passed to stop worst abuses of industrialization 1842 Mines Act in Britain stops women, children working underground 1847- workday for women, children limited to 10 hours in Britain U.S. ends child labor, sets maximum hours in 1904

The Reform Movement Spreads In 1833, William Wilberforce helps end slavery in British empire Slavery ends in U.S. in 1865 Women begin pursuing economic and social rights as early as 1848 Public Schools free public schools in Europe in late 1800s Common U.S. by 1850s Also reform prisons

Horace Mann Free Schooling for all Children

William Wilberforce Led the fight against slavery in Great Britain & it’s Empire

Jane Addams “Hull House” Ran settlement houses to provide for the poor. “Hull House”

Democratic Reform and Activism Ch. 10, Section 1

Women’s Movement Some countries had universal suffrage for men, but not women Both men & women claimed women lacked the “ability” to participate in politics Women began protesting

Emmeline Pankhurst

Members of WPSU jailed numerous times Hunger strikes to get attention New Zealand (1893) Australia (1902) Finland (1906) Norway (1913) Britain (1918) U.S.A. (1920)