1. Rise of Big Business
With new technology came the need for the investment of large amount of money into business
To acquire money, business owners sold stocks or shares in their company
Incorporating allowed less risk
Stockholders allowed business to form corporations and expand into many areas

2. Competing Philosophies
Capitalism versus Communism/Socialism
VS.
Means of production=refers to physical, non-human inputs used in production—the factories, machines, and tools used to produce wealth ( Who should own them?????)

3. Capitalism
Capitalism- a.k.a. The Free Enterprise System, Market Economy, Free Market System, Laissez-Faire.
Individuals are free to make their own economic decisions, there is private ownership of the means of production, Government keeps its “hands off” the economy, Entrepreneurs start business, Investment of wealth for profit, the Middle Class or Bourgeoisie dominate
Capital = money (or anything) used to invest to make wealth

4. Laissez Faire Economics =
Policy that the government should keep its hands off the economy
What was the old way? Mercantilism- government regulations, tariffs, favorable balance of trade.
Adam Smith a.k.a. “the Father of Capitalism” – Promoted laissez faire economics in Wealth of Nations

5. Communism/Socialism
Communism a.k.a. Socialism, Marxism, Leninism, Maoism
Communal or government controls or commands the economy, there is public ownership of the means of production, distribution and exchange, Working Class or Proletariat dominate, Ideally end result would be a classless society, Marx predicted a violent revolution to overthrow the Bourgeoisie (Socialism does not always stress necessity of violent revolution)
Karl Marx a.k.a. “Father of Communism” promoted Communism/Socialism in the Communist Manifesto

8. Social Darwinism
Social Darwinism – successful people were successful because they were more “fit to succeed than others. War allowed stronger nations to weed out weaker ones. Contributed to the rise of racism and imperialism

9. Social Mobility
This illustration of a “typical apartment” appeared in a Parisian newspaper in 1845
This illustration in this slide offers a classic example of the Industrial Revolution’s impact on housing and urban development (Bibliotheque National, Paris). Servants are shown working on the ground floor, while an elderly couple dances to music a young girl plays on the piano. On the first floor (known as the second floor in the United States), two wealthy people relax in elegant surroundings. Above them on the second floor, a bourgeois family lives in comfortable but somewhat crowded conditions.
The rooms on the third floor are smaller. In the room on the left, a landlord appears to be evicting a resident, while a man and woman in the other room entertain themselves with a small dog. The fourth floor is divided into three rooms. Two artists relax in the room on the left, a young man sits in the middle room, and a poor man and woman live with their three children in the room on the right.