1. Chapter 9 Section 4 Reforming the Industrial World
Objective: Summarize the economic, social, & political reforms that arose from the Industrial Revolution
Vocabulary: Laissez Faire, Adam Smith, Capitalism, Utilitarianism, Socialism, Karl Marx, Communism, Union, & Strike
New: Should the government have control over what companies can or can not do? Provide an example of when this might occur.
Review: What were the two major inventions during the Industrial Revolution?
What is a corporation? Give an example of one.

2. Setting the Stage
Business leaders believed the government should stay out of business & economic affairs
Reformers, however, felt that governments needed to play an active role to improve conditions for the poor
Workers formed labor unions & began to demand for more rights & protection
Why would business owner want the government to stay out of their affairs?

3. The Philosopher of Industrialization
Laissez Faire: economic policy of letting owners of industry & business set working conditions without interference
Laissez Faire economist believed that government regulations only interfered with the production of wealth
Adam Smith believed that economic liberty guaranteed economic progress
Adam Smith’s believed in the 3 natural laws of economics (law of self-interest, law of competition, & law of supply & demand)
“Let people do as they please”
Wrote the Wealth of Nations
self-interest – people work for their own good
Competition – competition forces people to produce a better product
Give an example of two businesses that compete for your attention.
Supply & demand

4. Check for Understanding
Give an example of 2 rival businesses that compete for your attention.
Sentence Starter: Two rival businesses that compete for my attention are ______ & ______.

5. The Economists of Capitalism
Capitalism: an economic system in which the factors of production are privately owned & money is invested in business ventures to make profit
Belief that there is a permanent underclass that would always be poor
In a capitalist society they believed that creating minimum wage laws & better working conditions would upset the free market, lower profits, & undermine the production of wealth in society
Belief that wars & epidemics kill off the extra people or more people would be miserable
With scare resources prices go up if there are abundant resources prices go down
Do you believe you will always have people who will be poor or do you think we can have equality for everyone in the world? Why or why not?

6. The Rise of Socialism
Utilitarianism: theory that government actions are useful only if they promote the greatest good for the greatest number of people
They questioned the idea of unregulated capitalism
Utilitarians pushed for reforms in the legal & prison systems as well as in education
People should judge ideas, institutions, & actions on the basis of their utility or usefulness
Wanted the government to do away with great differences in wealth

7. Utopian Ideas & Socialism
Robert Owen took an active approach to reforms, he improved working conditions for his employees
He founded a cooperative community called New Harmony in Indiana, hoping it would become a Utopia “perfect living place”
Socialism: factors of production are owned by the public & operated for the welfare of all
Socialist believed that government control of factories, mines, railroad, & other key industries would end poverty & promote equality

8. Marxism: Radical Socialism
Karl Marx introduced the world to a radical type of socialism called Marxism
Karl Marx & Friedrich Engels wrote the Communist Manifesto
They argued that human societies have always been divided into warring classes (Bourgeoisie vs. Proletariat)
According to Marx & Engels, the Industrial Revolution enriched the wealthy & impoverished the poor
Give an example of how the industrial revolution enrich the wealthy & impoverish the poor?
The workers have nothing to lose but their chains

9. The Future According to Marx
Marx believed the capitalist system would eventually destroy itself
Communism is a form of complete socialism in which the means of production (all land, mines, factories, railroads, & businesses) would be owned by the people
They believed that economic forces alone dominated society however time has shown other factors also influence it
The working class would revolt
Religion, nationalism, ethnic, loyalties, & desire for democratic reforms play a factor.

10. Labor Unions
To press for reforms, workers joined together in voluntary labor associations called Unions
Unions engaged in collective bargaining & negotiations between workers & their employers
If factory owners refused the Union’s demands, they would strike (refuse to work)
Skilled workers had the upper hand in unions because they were harder to replace
The government originally outlawed unions
Why would strikes work & why would they not work?
What is something you would strike for?

11. Reform Laws
Eventually, reformers & unions forced political leaders to look into the abuses caused by industrialization
Parliament began investigation child labor & working conditions in factories & mines
They passed several laws protecting women & children
Limit working hours to 10 hrs for woman & children

12. Check for Understanding
Why did they need to limit the amount of hours children were working?
Sentence Starter: They needed to limit the amount of hours children were working because ______.

13. The Reform Movement Spreads
Parliament finally abolished slavery in the British Empire in 1833
Some people who were antislavery activists were morally against it but others saw it as an economic threat
Slavery was finally abolished in the United States in 1865
Slavery ended in 1888 in Brazil
Why did slavery ended in the United States?

14. The Fight for Women’s Rights
Women led reform movements to address the pay gap & other pressing social issues
Women began to wonder why their own rights should be denied on the basis of gender
Public education & prison reform also ranked high on reformers’ lists
They fought for free education & providing prisoners with the means to lead to useful lives upon release