Capitalism Socialism Individuals and businesses own property and the means of production Progress results when individuals follow their own self interest Businesses compete for consumers money by producing goods that are better and less expensive than competitors Consumers compete to buy the best goods at lowest prices. Shapes the market by affecting what businesses sell Government should not interfere in the economy because competition creates strong businesses (Free Markets) The community or state should own property and the means of production Progress when a community cooperates for the good of all Believe that capitalist employers take advantage of workers and the government must protect workers unequal distribution of wealth and goods in the capitalist system System should distribute goods according to each person’s need Government regulation of economy to ensure equal distribution of wealth and material goods (Command Economy)

Labor Unions Workers began to push for reforms to improve working conditions in factories Formed Unions – Association of workers that is formed to bargain for better working conditions and better pay

Methods Used by Unions Collective Bargaining Strikes Political Action Union negotiates salaries and working conditions with employer Support and push politicians to pass laws improving salaries and working conditions Workers stop work to force an employer to meet their demands

Labor Unions Unions contributed to: – Reduced work hours – Improved wages – Safer working conditions

Reform Legislation Reformers and unions pushed governments to pass laws correcting problems created by industrialization

Reform Legislation The Sadler Report – British Parliament investigated child labor in Britain – Led to Factories Regulations Act (1833) Placed restrictions on child labor Other countries began passing laws to protect workers

Education Governments began to setup public schools – Required basic education for all children in the late 1800’s

Points for Discussion Why did workers form Unions? What is one reform that unions were able to accomplish? What did the Sadler Report investigate?