1. Industrial Revolution & World War I Unit
Age of Reform
Industrial Revolution & World War I Unit

2. Essential Question
Explain how governments responded to the ideas for change during the Industrial Revolution.

3. Key Vocabulary
Adam Smith- Wrote “The Wealth of Nations” and promoted the economic theory of capitalism.
Laissez-Faire- French term meaning the government should keep their “hands off” the economy.
Capitalism- Economic theory that promotes investing in business in hopes of making a profit.

4. Warm Up: New Grading Policy
I have decided that no one shall receive less than a C in my course
However, in order to make this happen I must take higher grades away from other students. So students with A’s and B’s must give up some points.
This way everyone in class shall receive no lower or higher than a C. Everyone will be equal.
WOULD YOU LIKE THIS NEW POLICY? EXPLAIN.

5. Philosophers of Industrialization
Adam Smith (1776)
Wrote “The Wealth of Nations” which advocated Laissez-faire economics.
Laissez-faire, or hands off, advocated an economic policy that favors a free market unregulated by the government.
Known as Capitalism, a system in which money is invested in businesses in hopes of profit.

6. Capitalism Supporters:
Thomas Malthus (1798)
Wrote “Principle of Population” and argued that population grew faster than food supply and most people were destined to be poor.
David Ricardo (1817)
Believed as population increases wages would always be forced down.
Smith, Ricardo and Malthus opposed gov’t efforts to help the poor, believing it would upset the free market system.

7. Industrial progress widened the gap between the rich and poor.
Business leaders wanted the government to stay out of economic affairs.
Reformers felt the government should play an active role in bettering conditions for the poor.

8. Reformers Utilitarianism Jeremy Bentham
Argued that the government policy should promote the greatest good for the greatest number of people
John Stuart
Questioned unregulated capitalism and called for policies that would lead to a more equal division of profit

9. Utopian ideas
Factory owner Robert Owen improved working conditions for his employees.
Built houses near the mill, prohibited children under 10 from working, and provided free schooling

10. Assessment Prompt 1
Explain how the ideas of the Industrial Revolution changed how the philosophers and reformers viewed the government.

11. Rise of Socialism
Believed there needed to be a new form of government and economic system to solve the problems of the Industrial Revolution
In socialism the factors of production; factories, railroads, mines and other industry are owned by the public.
This would abolish poverty and promote equality.

12. Communism
Karl Marx and Friedrich Engels write “The Communist Manifesto”.
Radical type of socialism
Argued that society was divided into the “haves” or Bourgeoisie, and the “have-nots” or proletariat.
Advocated violent revolution where the workers would overthrow the owners

13. The proletariat would then own all the factors of production and produce what society needed.
Profits would be shared and the workers would control the government in a “dictatorship of the proletariat”.

14. The government would then itself wither away as a classless society developed.
All factors of production would be owned by the people and private property would not exist.
/watch?v=B3u4EFTwprM

15. These predictions have since been proved wrong.
However, “Marxism” did inspire revolutionaries such as Lenin in Russia, Mao Zedong in China, and Fidel Castro in Cuba.

16. Assessment Prompt 2
Socialism
Marxism

17. Reactions to Marxism
Capitalists and governments respond to Marxism and begin to allow reforms.
They are willing to make concessions to workers in the interest to preserving the system.

18. Workers are eventually allowed to join unions.
Unions engaged in collective bargaining and strikes to get better pay and working conditions.
Governments passed laws to protect children, women, and improve working conditions.
Unemployment insurance, sick leave, vacation days, workman’s compensation, etc. also eventually resulted

19. Assessment Prompt 3
Summarize the reactions to Marxism in two sentences.

20. Activity
Industrial Revolution Worker Reading

21. Journal
Answer the EQ: Explain how governments responded to the ideas for change during the Industrial Revolution.
Consider the following: What is “The Wealth of Nations”?
What is Laissez-faire economics?
What was the result of the widening gap between the rich and poor?
What is socialism?
Why has socialism/communism proved unsuccessful?
What did Marxist ideas force capitalists to accept?
What kinds of reforms are created?
What economy did the new grading policy resemble?