Industrial Revolution Part 2 Ms. Hunt Unit 4 RMS IB

Results of the Industrial Revolution Capital–large amounts of money, or capital. Money was needed to – build factories – buy machines – buy raw materials – pay workers. Capitalists- The entrepreneurs who risked the money, controlled the production process. Capitalism- the economic system based on private capital

Laissez-faire Laissez-faire- to leave alone. Capitalists urged governments to quit regulating business. They wanted to manufacture and sell their goods without government interference. Result- Owners of companies became very rich and the “kings of commerce”

The Negative Side of the Industrial Revolution Negative aspects of laissez-faire. 1.Low wages. 2.Horrible working conditions. 3.Inferior goods. 4.Unfair competition 5.Monopolies 6.Environmental damage.

Unfair Labor Conditions The worst aspect of the Industrial Revolution was the horrible labor conditions it created. 1. Child labor – From age 5 children worked in factories and mines, often under extremely dangerous conditions. 2. Low wages – factory owners paid the absolute minimum, often just barely enough to prevent starvation. 3. Long hours – most people worked 16 hours a day, six days per week. 4. Dangerous work – since work places were not regulated, many people, particularly women and children were killed and injured due to conditions in the factories and mines. *Picture Below- Child works in 1900 in Newton, North Carolina

Unfair Labor Conditions Because of the demand for cheap labor during the Industrial Revolution Many children worked long hours for almost no pay, in mines and factories. Child labor laws beginning in the 19th century stopped this practice in the U.S. and Great Britain, but child labor still exists in many parts of the world.

Socialism 19 th Century called for reforms to capitalism = creation of Socialism Definition of Socialism- The government owns and operates major means of production like farms, mines and factories and controls distribution. The government determines the needs of the people and provides goods and services for the people to use. The government plans the economy, decides what new industries to start, and allocates capital, workers, and raw materials.

Marxism The Basic Ideas Karl Marx- founder of “scientific socialism” in Communist- Marx’s term for the ideal form of socialism 1.Marxism or communism, can only be achieved by revolution or violent overthrow of the capitalistic government and economy. 2.A Marxist government must be a dictatorship of the workers. - It must suppress capitalistic ideas or counterrevolutionary movements or ideas. 3.Marxism requires government ownership and operation of all means of production and distribution