1. Key Concepts 5.1
V. A-D

2. The Wealth of Nations Adam Smith
Natural freedom
sovereigns defend the country from foreign invasion, protect citizens from injustice or oppression, and maintain public works
laissez-faire
let people do as they choose
distribution of income, wages of labor, profits of stock, and rent of land

3. The Wealth of Nations Society is one immense system of cooperation…
generous wages = more productivity
price of an item = the amount of labor put into it

4. 5.I.V The development and spread of global capitalism led to a variety of responses.
In industrial states many workers orgnized themselves to improve working conditions, limit hours, and gain higher wages, while other opposed capitalism exploitation of workers by promoting alternative visions of society.

5. Proletarianization you must understand this to understand Marx
As workers enter wage economy, they lose control over the means of production (tools & equipment), and of their trade.
Factory owners provide starter money, machinery (means of prod.), and raw materials, all the worker gives is the labor.
For their labor they are paid, at the end of the day they have money, and with that they must provide (purchase, not make) everything they need.
In order to protect their interest the proletariat began organizing into labor unions
Labor unions often led to new political ideologies

6. Chartism (Early British Labor Union)
Late 1830s artisans politically organize to protect interests
Called for univ. male suffrage,
annual elections of H of C,
secret ballots
abolition of property requirements for Members of the H of C

7. Utopian Socialism Not focused on class struggle
Believed something was wrong,
Felt paternal action was the appropriate response.
Lacked any meaningful political following.
Heavy focus on economic planning, economic equality, state control of property
Questioned values of capitalistic framework.
A belief in industrialization, and its proper use to eradicate poverty

8. Socialism
Radical political theory that states that ALL humans are equal
Different groups will argue about how to achieve this equality and the gov’t role in achieving this equality
Equality doesn’t necessarily mean economic equality
Supports capitalist economics and private ownership

9. Marxism Political theory developed by Karl Marx 1848
Stated that the proletariat (workers) would overthrow the bourgeoisie (wealthy) and social classes will cease to exist
Marx didn’t promote this, he just said it would happen
You cannot have a Marxist Revolution without industrialization
People will take this theory and adapt it to their own needs and create political systems based on the idea of classless societies (Communism in many forms)
Gov’t control of economics is key to all Marxist systems
This is opposite of Socialism that supports capitalist economics

10. 5.I.V The development and spread of global capitalism led to a variety of responses.
B. In Qing China and the Ottoman Empire, some members of the gov’t resisted economic change and attempted to maintain preindustrial forms of economic production.

11. Reaction to Capitalism by the Ottomans
Trade had transferred to Indian Ocean or Atlantic Ocean
Imported European goods, but didn’t export much
Became financially dependent on Europeans
Couldn’t pay interest on loans and economics turned over to foreign powers

12. Reaction to Capitalism by the Ottomans
Extraterritoriality
Europeans in other territories were under European laws, not native laws
Europeans set up their own banks and commercial enterprises
Seemed as a humiliation for the Ottomans

13. Reaction to Capitalism in Qing China Self Strengthening Movement
Gentry tried to combine Confucian ideals with western technology
Didn’t do much
They tried to maintain agricultural society and industrialize at the same time
Empress dowager Cixi didn’t support the movement economically

14. Reaction to Capitalism in Qing China
Foreigners
Germans had mineral and railway rights in Shandong
France in the south
GB in the Yangzi River valley
Japan in the southeast
Russia in Manchuria
Only middle China was free of foreigners

16. Hundred Days of Reform (Qing China)
Emperor Guangxu
Goal was to remake China into an industrial power
Had to let go of agrarian traditions
Constitutional monarchy
Civil liberties
Better education system
Modernize military
Imperial household reacted violently

17. End of the Hundred Days (Qing China)
Empress Cixi nullified reforms
Arrested the emperor and held him in the Forbidden City
Executed leaders

18. 5.I.V The development and spread of global capitalism led to a variety of responses.
C. A small number of states, gov’t promoted their own state-sponsored visions of industrialization.

19. Reaction to Capitalism in Russia
Sergi Witte-Finance minister
Railway construction
High protective tariffs
Invited foreign investors
Created usual social movements associated with industrialization

20. Emancipation of Serfs (Russia)
Serfs were free, but worked on Mirs
Mirs were village systems
Peasants had to pay tax to nobility
Ended up in debt

21. Reaction to Capitalism by Meiji Japan
Gov’t subsidizes
Brought in foreign advisors
Improved transportation
New educational system focused on science
Close relationship btwn. Business owners and Gov’t

22. Reaction to Capitalism by Meiji Japan
Women were allowed to be educated
New jobs
Harsh treatment in coal mines and textile mills
Miners who tried to escape were sometimes shot
No emphasis on human rights

23. 5.I.V The development and spread of global capitalism led to a variety of responses.
D. In response to criticism of industrial global capitalism, some governments attempted to prevent rebellions by promoting various types of reforms .

24. German Reforms
Bismarck saw Socialism as a threat to German unity so he passed laws outlawing their right to assemble and publish
1883: Compensation during illness; health care
1884: Accident insurance Law
1889: Old Age Pension for workers over 70
Unemployment

25. English Factory Act of 1833 Issue: Child labor
No child < 9 could work
workday limited
education must be factory owner’s expense. (2 hours a day)
**major shift in education - now teachers are resp. for education not parents**