1. New Ideas

2. Unit Objective
Learning about the new ideas that resulted from dissatisfaction with industrialization or advances caused by it

3. The ’s were one of the biggest transition periods in World History for three important reasons:
1.) FROM ROMAN CATHOLIC DOMINATED SOCIETY TO ONE OF MANY CHOICES (REFORMATION)

4. 2.) FROM LARGELY UNEDUCATED SOCIETY TO
EDUCATED AND CULTURED (RENAISSANCE)
3.) FROM RURAL AGRARIAN TO URBAN
INDUSTRIAL (INDUSTRIAL REVOLUTION)

7. Impact of Industry on Society
Industry created great wealth for the middle class (factory owners) but great hardships for the working class (poor working conditions, low pay, long hours, etc.)—the question that faced society was what to do about it? There were two options.

8. Option #1: Nothing should be done about it
Laissez-Faire economics:
GOVERNMENT SHOULD LEAVE BUSINESS
ALONE (GOVERNMENT INTERFERENCE COST
BUSINESSES MONEY AND WOULD BE BAD
FOR ECONOMY)

9. Adam Smith (Wealth of Nations):
World’s most famous economist; disagreed
with mercantilist beliefs of his time (that the
strength of a nation’s economy depended on
its ability to balance trade)

10. National power was more important than individual welfare
Mercantilist Beliefs
Gold or Money = Wealth
National power was more important than individual welfare
Foreign trade must be strictly regulated because it is the source of most gold and money

11. Adam Smith’s Beliefs 1) LABOR = WEALTH 2) INDIVIDUAL WELFARE SHOULD BE
2) INDIVIDUAL WELFARE SHOULD BE
PROTECTED (PEOPLE SHOULD FOCUS ON
SELF-INTEREST BECAUSE THEN EVERYTHING
WOULD WORK OUT IN THE END)

12. 3) COMPETITION & FREE MARKET ECONOMY
WOULD GUIDE RESOURCES TO THEIR MOST
PRODUCTIVE USES WITHOUT GOVERNMENT
INTERFERENCE

13. In summary…
People who supported a Laissez Faire approach to regulating the economy (meaning the government should leave business alone) believe the free market would make necessary changes happen without a need for the government to force it
FOR EXAMPLE: It isn’t necessary for the government to set or raise minimum wages because companies will be raise wages on their own as they compete with each other for good employees

14. What is wrong with that way of thinking about business?

15. Option # 2: Government should regulate business closely to protect society (workers and consumers)
Some, based on the complaints of workers and consumers, believed the government should be more active in regulating business
EXAMPLES: Laws restricting or banning monopolies, laws protecting individual liberties, taxes that would more equally distribute wealth

16. Socialism and Communism (we’ll discuss these later) greatly regulate the economy and are the other end of the spectrum from Laissez Faire

17. Which option makes more sense to you
Which option makes more sense to you? Option 1 (Laissez Faire economics) or Option 2 (Close government regulation of the economy)

18. Which way has America gone (Laissez Faire economics or close regulation of business)?

19. SOMEWHERE IN BETWEEN—WE DO REGULATE BUSINESS BUT NOT AS CLOSELY AS IN SOCIALISM OR COMMUNISM (BUSINESSES ARE FREE TO MAKE MOST DECISIONS ON OWN BUT THERE ARE LIMITS OR LAWS TO FOLLOW)

20. New ideas in Science and Medicine
Cell Theory:
ALL LIVING THINGS ARE MADE UP OF CELLS
Charles Darwin (Evolution)

21. Louis Pasteur:
DISCOVERED BACTERIA &
THAT IT CAUSES
INFECTIOUS DISEASES; NEW
BREAKTHROUGHS IN
VACCINATIONS
New anesthetics and sterilization methods in surgery

22. Atomic Theory:
Matter is made up of atoms
Sociology:
Study of human behavior in groups
Psychology:
Study of human behavior in individuals
-Ivan Pavlov:
Researched the effect of stimuli on behavior
-Sigmund Freud:
Researched the effect of the unconscious mind on behavior

23. Pavlov and Freud