1. Capitalism in the Industrial Revolution

2. Before the Industrial Revolution… The Cottage Industry Less Investment needed at least… Use of skilled craftsmen

3. But why… What drove all this change?

4. Industrial Production ENTREPRENUERS CAPITALLABORLAND FACTORS of PRODUCTION 1.Get loans from banks 2.Use money to resources Resources Entrepreneurs buy INDUSTRIAL PRODUCTION Consumer Goods Made

5. Why do entrepreneurs go into business? COSTS PROFIT CAPITALLABOR LAND

6. Capitalism economic system  capital invested to make a profit Companies compete for profit; poor companies die off

7. MR. PADRON

10. Adam Smith

11. Laissez Faire  no gov’t regulations; “hands off” Back off to let business grow AKA… Free-Market Adam Smith

12. What cost do business owners control most? COSTS CAPITALLABOR LAND

14. MR. PADRON

15. Why doesn’t the British Gov’t regulate the coal industry? In pure PURE capitalism, gov’t stays out of the way of business. MR. PADRON

16. Thomas Malthus MR. PADRON

17. The Malthusian Scissor Believed populations increased faster than food supply Most people destined to be poor & miserable MR. PADRON

19. The Malthusian Scissor populations naturally even out thru starvation MR. PADRON

20. If you believe in PURE capitalism… Should you help the poor? NO MR. PADRON

23. Break it Down What is capitalism? According to Adam Smith, why shouldn’t government get involved with business? Explain. According to Thomas Malthus, is it possible for government to help the poor? Why? Why not?